Transportation Secretary Vicente Rivera Jr. denied yesterday that the contract that he and three others forged with a private firm for the construction of Terminal III of the Ninoy Aquino International Airport (NAIA) was disadvantageous to the government.
Rivera said the deal was "already a perfected contract, having gone through the process prescribed under the Board of Investment (BOI) law.
He pointed out that the contract should not have passed the "stringent evaluation and review" of the National Economic Development Authority-Investment Coordination Committee had there been questions and doubts about its provisions.
Rivera, along with presidential friend Henry Go of the Philippine International Air Terminals Co. (PIATCO), former Ninoy Aquino International Airport Authority (NAIAA) general manager Francisco Atayde and Bases Conversion Development Authority (BCDA) chairman Victorino Basco, is facing graft charges in the Office the Ombudsman.
The complaint was filed by Rogelio Estrella, president of the non-government organization Bangon Pasay Movement, who alleged it was a "lopsided deal" as PIATCO was only made to pay P20 per square meter in monthly rental for developing the 65-hectare lot within Villamor Air Base.
Rivera maintained that the charges were "not founded on facts" and that Estrella's group might just have been "misinformed about the whole matter."
He added the construction of Terminal III was a major project of former President Ramos and that the contract was negotiated and signed by former Transportation Secretary Amado Lagdameo.
Rivera said there was also no truth to Estrella's allegation of only P20 per square meter monthly rental, clarifying that PIATCO is not a party to the lease arrangement relating to the site. "The lease contract is actually between the BCDA and NAIA."
He explained that while it is true that the terminal fee to be collected for the use of Terminal III would be around P800, the government's share is not P120 but 36 percent of the amount collected.
Aside from this, the government stands to collect an annual guaranteed fee of P300 million for two years from PIATCO during the construction of the terminal, P510 million for the first two years of operation, P610 million for the next two years and P710 million from the fifth to the 25th year.
Rivera maintained that the exclusivity provision of the contract does not give PIATCO a monopoly to operate passenger terminals in Luzon.