DOTC to take over NAIA-3

MANILA, Philippines - The Department of Transportation and Communications (DOTC) said yesterday it is prepared to fully operate the Ninoy Aquino International Airport Terminal 3 (NAIA-3) after a Pasay City regional trial court (RTC) granted the government’s petition to put the money for expropriation of the terminal in an escrow account.

In an omnibus order promulgated Tuesday, the Pasay City RTC Branch 117 granted a motion of the government seeking to have $175.79 million (approximately P7.63 billion) in just compensation paid to the airport’s builder, Philippine International Airport Terminals Co. (Piatco), deposited in an escrow account with the Land Bank of the Philippines and the Development Bank of the Philippines.

“The decision of the court allowing us to take full possession of NAIA-3 after (the government) makes the necessary payment to Piatco is a very positive development,” DOTC Secretary Manuel Roxas II said.

He said the ruling clears the way for the government to pursue talks with Japanese firm Takenaka Corp., a sub-contractor that built the terminal for Piatco, to complete the unfinished portion of NAIA-3. 

DOTC Undersecretary for legal affairs Jose Perpetuo Lotilla said the court order will help the government “move forward and place the NAIA-3 facilities in full operation.”

The court said the agreed amount – less P3,002,125,000 the government paid in 2006 – may be released to Piatco once the builder assures the government there are no other claims in terms of liens and encumbrances on the airport.

“Upon payment of the plaintiffs of the said just compensation in an escrow account, this court recognizes the Republic of the Philippines’ right to exercise full rights of ownership over the (NAIA-3) structures and facilities,” stated the order signed by Presiding Judge Eugenio de la Cruz.

Before the amount could be released, Piatco was required by the court to first submit a warranty that the structures and facilities of the airport are free from all liens and encumbrances; an undertaking that it is assuming the sole responsibility for any claims from third persons arising from or relating to the design or construction of any structure or facility of NAIA-3, if any; and a duly executed deed transferring the title of the airport structures and facilities to the government.

The RTC also imposed a condition that it is “without, however, prejudice to the amount which will finally be awarded to Piatco by the Court of Appeals” which in turn is hearing a claim by Japanese contractors Takenaka and Asahikosan against Piatco, insisting that they are the real builders of NAIA-3 and are thus entitled to payment.

Solicitor General Joel Cadiz welcomed the ruling, saying there is “no scintilla of doubt that the terminal facilities are fully owned by the government, as the court has upheld the OSG’s motion to deposit the full just compensation in an escrow account.”

Piatco said it will elevate the case to the Court of Appeals to seek a reversal of the court, which also junked last May 23 the firm’s claim for at least $846.42 million as just compensation.