Aviation groups back plan to declare NAIA 3 deal invalid

Aviation industry groups welcomed yesterday the plan of a panel of government lawyers to declare null and void the government’s contract with the Philippine International Air Terminals Co., Inc. (Piatco), operator of the controversial Ninoy Aquino International Airport (NAIA) Terminal 3, since this will protect the country’s interests.

Romy Sauler, spokesman of the Scrap the Piatco Deal Coalition (Scrap), said President Arroyo would be true to her promise to build a strong Republic if she would implement the recommendation of the panel.

"There is no more doubt that the contract is shot with onerous provisions that prejudiced not only airport workers but also the people and country," Sauler said.

He said no less than the Office of the Solicitor General, the government’s legal counsel, has declared that the Piatco contract contains provisions highly onerous and disadvantageous to the government in its comment filed before the Supreme Court.

The OSG, it will be recalled, had said the Amended and Restated Concession Agreement (ARCA) was invalid from the start because it did not undergo public bidding and was not approved by the National Economic and Development Authority (NEDA).

It also said it is the Filipino people that will pay for the huge debts of Piatco once it defaults on its loan payments as stipulated by a government guarantee in the contract, which is considered one of the agreement’s most anomalous provisions.

Published reports stated that there has been a consensus among the members of the legal panel that the contract is full of legal defects which triggered the increase of the project’s cost, from $400 to $600 million.

Sauler said, "it is reassuring to hear that the government plans to do something about the contract’s onerous provisions." He said once the Piatco contract is invalidated, the government would get the support of all sectors of society, especially those who will be prejudiced by the current deal.

"International passengers, aviation industry workers, fair-minded businessmen and the Filipino people will surely welcome and support a government move declaring the contract null and void," he stressed.

Reports also said majority members of the Malacañang panel tasked to review the contract are pushing for a government takeover of the facility.

Sauluer also criticized the action of some members of the House transportation committee for calling for the early opening of Terminal 3 despite the government’s decision to postpone the opening from Dec. 15 to April next year because of security concerns.

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