Alvarez admits RP-Piatco deal needs amendment

Transportation and Communications Secretary Pantaleon Alvarez has admitted the existence of onerous provisions in the deal between the government and the Philippine International Air Terminal Co., Inc. (PIATCO) for the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3.

In a dialogue with aviation industry workers last Wednesday, Alvarez agreed with the workers’ position on the need to amend Section 3 of the Amended and Restated Concession Agreement (ARCA) between the government and PIATCO.

"Dapat, kung pupuwede, i-wave na lang ang provision na yan (by PIATCO)," Alvarez said in response to a question on what the DOTC can do to correct the negative effect of Section 3 to aviation workers.

Section 3.02 (a) of the ARCA gives PIATCO and its affiliate, Philippine Airport and Ground Services, Inc. (PAGS), total and exclusive control of the Terminal 3 operations, dislocating current service operators at the NAIA Terminals 1 and 2.

The dislocation of these service operators, including the MIASCOR Group, Macro-Asia and the ground services department of Philippine Airlines (PAL), will result in the retrenchment of more than 10,000 airport workers.

Alvarez admitted though that it would be difficult now to amend the contract, adding that a committee has been created by President Arroyo to study the issues being raised against the deal. The committee is chaired by Gloria Tan-Climaco, former chairman of SGV.

"Ang magagawa ko, pero hindi ko maipapangako na mababago ang kontrata, tutulong ako sa pagkumbinsi sa PIATCO na i-wave ang provision na eto (Section 3)," Alvarez told the workers.

The DOTC secretary also admitted that some airport workers would be losing their jobs when the Terminal 3 starts operating this year. "Yun nga ang sabi ko, talagang meron din namang matatamaan, meron din namang ma-a-absorb," he pointed out.

In a press statement, Alex Barrientos, president of PALEA, corrected newspaper reports that they have turned off the heat on Alvarez and the government-PIATCO deal.

"For the record, the ‘dialogue’ between the workers and Alvarez last Wednesday was not a settlement for a compromise regarding the PIATCO deal. Such a significant issue as the PIATCO deal cannot be resolved in one fell swoop," Barrientos said.

He strongly denied that leaders of the Block Alvarez Movement (BAM) have agreed to support Alvarez. "We are not letting up on our attacks on the lopsided government-PIATCO agreement.

Barrientos said Alvarez’s confirmation must be anchored on his commitment to save the current jobs in the aviation industry. "By committing to save these jobs, we expect that not one worker be stripped of his job," he said.