Piatco contract revision sought

The Office of the President wants at least 28 provisions of the controversial Philippine International Air Terminals Co. (Piatco) contract for the airport’s Terminal 3 revised.

The proposal is contained in a letter Presidential Adviser for Strategic Projects Gloria Tan-Climaco has sent to Piatco chairman Bernd Struck and company president Vic Cheng Yong.

Climaco is the object of an arrest warrant that the Commission on Appointments has issued in relation to the confirmation of Transportation and Communications Secretary Pantaleon Alvarez. The CA wants Climaco to shed light on the Piatco contract.

In her letter, Climaco sought a detailed accounting of the expenses that the Terminal 3 proponent-builder has so far incurred.

She said despite her previous written and verbal requests, such documents "have not been furnished nor shown to us."

"Without a determination and verification of said project cost, the government cannot be reasonably requested to negotiate on nor approve the proposed fees to be charged in Terminal 3. As you are aware, this would affect issues concerning, among others, the Diosdado Macapagal International Airport, Philippine Airlines and Duty Free Philippines," she said.

The government’s confusion on the cost of the project apparently jibes with the finding of Rep. Salacnib Baterina (Lakas, Ilocos Sur) that "sky is the limit" as far as expenses are concerned.

"The cost keeps on rising because Piatco keeps on borrowing, since its loans, under its contract, are guaranteed by the Government of the Republic of the Philippines," he said.

From an original estimate of $350 million, the cost has more than doubled to $760 million (P38 billion), he said.

"This is another PPA (purchased power adjustment) in the making," he stressed.

The government wants the provisions on guarantees changed as these could run in conflict with laws, including the Build-Operate-Transfer Law under which the Terminal 3 project is being undertaken.

It also wants the restriction on the development of other airports, principally the Diosdado Macapagal International Airport in Clark, Angeles City, scrapped.

Under the Piatco contract, the Clark airport cannot be expanded beyond its present capacity until passenger use for Terminal 3 has reached 10 million for three consecutive years.

As for the $20 passenger terminal fee, Climaco said it should be "adjusted to reflect the true intention at the time the concession agreement was entered into."

Other government proposals contained in the Climaco letter:

• Government retains the right to regulate public utility fees (fees for facilities that the public cannot do without).

• Government reserves the right to intervene with respect to non-public utility fees (those to be paid by concessionaires).

• The obligation of the government to Piatco’s senior lenders should be clarified.

Climaco’s letter contradicts the findings of the House transportation committee and Rep. Ruy Lopez (Lakas, Davao City) that there is nothing wrong with the Piatco contract.

Yasay’s last gasp?

A spokesman for Alvarez branded yesterday the latest anti-Alvarez advertisement in newspapers as "a desperate gasping breath of an ex-would-be politician."

DOTC spokesman Ramon Cuyco was referring to former Securities and Exchange Commission chairman Perfecto Yasay Jr., who heads a group opposing the Piatco contract and Alvarez’s appointment. Yasay ran and lost in the senatorial elections in May last year.

"Who does he think he is? He must be hallucinating thinking that he possesses more wisdom and intelligence than the members of the House committee on transportation both in the 11th and 12th Congress, the Ombudsman and even NEDA director general Dante Canlas who have all cleared Secretary Alvarez of any wrongdoing in connection with the Piatco concession agreement" Cuyco said, calling Yasay "obstructionist."

The Ombudsman last March promulgated a decision clearing Alvarez of the plunder raps filed by MASO (MIA-NAIA Services Operators) through (the group’s chairman) Yasay as the Piatco concession agreement was entered into before the Arroyo administration’s assumption into office.

Cuyco said Yasay was assuming too much self-importance. "Yasay’s overrated self-esteem to the point of arrogance has gone berserk, thereby cajoling Malacañang to withdraw its support for Secretary Alvarez and at the same time accusing it of interfering with the confirmation process," he said.

The spokesman added that it was about time the bicameral Commission on Appointments take Yasay to task for delaying the congressional processes which only wastes taxpayers’ money. – Jess Diaz