PIATCO again asks SC to reconsider ruling

A second motion for reconsideration was filed by Philippine International Air Terminals Co. Inc. (Piatco) with the Supreme Court yesterday, asking a reversal of its ruling that nullified its contract to build and operate the Ninoy Aquino International Airport’s (NAIA) Terminal 3.

Piatco questioned the government’s decision to cancel the contract and take over the nearly finished terminal following alleged anomalies in the contract.

Last Jan. 21, the high tribunal nullified the deal with finality. It said Piatco was not qualified to bid for the contract, which the Supreme Court also found to contain provisions that were said to be disadvantageous to the government.

Citing the Philippine Constitution in its motion, Piatco said the exercise of police power is a prerogative of the legislature and not of the executive branch of government.

It also denied government accusations that it changed or inserted provisions in the contract for its benefit after the deal was concluded.

"Piatco did not unilaterally sneak these amendments via the ‘backdoor.’ Rather, with the guidance of the lenders and their foreign and local lawyers, they thoroughly negotiated and discussed the need for these amendments with government, which fully understood the necessity of such amendments that eventually found their way into the signed contracts, thereby agreeing to the inclusion of such revisions in the concession agreement," the motion stated.

Rather than making a blanket declaration that nullified the contract, reinstating the original provisions in the deal was the proper course of action to take, Piatco said.

In an en banc resolution, the Supreme Court maintained that Paircargo Consortium, which was later organized into Piatco, was not a qualified bidder because it failed to meet the 30-percent minimum equity required by pre-qualification bids and awards committee for bidders.

The tribunal also noted that the amended contract violated the law because it gave the government the responsibility to assume Piatco’s liabilities in case of default on its loans. – Marvin Sy