Philippine International Air Terminals Co. (Piatco) became entitled to government compensation when the Supreme Court in early May nullified its government contract to build and operate the terminal.
Voting 10 to 3, the tribunal ruled that Piatco was not qualified to participate in the 1997 bidding for the construction and operation of the new terminal.
Roxas said the government will not pay for any so-called transaction or facilitation cost following allegations of overpricing.
The government has already begun discussions with Piatco’s main partner, the Cheng group, about the compensation issue. He did not say how much the government might have to pay.
Roxas heads a three-member Cabinet committee tasked by President Arroyo to untangle the legal controversy blocking the opening of the completed airport terminal.
The government says alleged onerous provisions were inserted in the deal after it was signed. That prompted Mrs. Arroyo in November to abandon the Piatco contract.
Malacañang wants to resolve soon the dispute between the government and Piatco so negotiations on the fate of the airport’s new Terminal 3 can start. Piatco had denied the contract was anomalous.
The high tribunal nullified Piatco’s contract after ruling that the consortium was not qualified to bid for the project in the first place because it was short of the required P3.9-billion equity.