NAIA-3 to be privatized; government warned vs rush
By Mary Ann Reyes and Aurea Calica (The Philippine Star) Updated August 02, 2010 12:00 AM
MANILA, Philippines - The government will privatize the operation and maintenance of the Ninoy Aquino International Airport Terminal 3 (NAIA 3) once all the legal obstacles to its full operation have been resolved, according to Transportation and Communications Secretary Jose de Jesus.
“All these legal issues, involving just compensation and arbitration proceedings, will have to be resolved first,” De Jesus said.
An expropriation case pending before the Pasay City Regional Trial Court appears to be the remaining legal obstacle to NAIA 3’s full operation after the International Criminal Court (ICC) in Singapore on Saturday, ruled in favor of the Philippine government in the arbitration case against the Philippine International Air Terminals Co. or PIATCO.
Earlier, the Washington-based International Center for Settlement of Investment Disputes or ICSID dismissed the complaint of German firm Fraport AG Frankfurt Services Worldwide against the Philippine government.
President Aquino said that with the development in Singapore, the government hopes to fully operate NAIA 3 in December.
Fraport went to the Washington-based ICSID for expropriation as it alleged that the Philippine government violated the bilateral investment treaty by not paying it justly.
But ICSID ruled in favor of the Philippine government noting the material changes made in the contracts for NAIA 3 after they were signed. ICSID also took Fraport to task for violation of the anti-dummy law.
PIATCO went to ICC in Singapore and sought to have its original contracts honored and be paid according to its own computation of the project cost.