Former Securities and Exchange Commission chief Perfecto Yasay, now lawyer of Asia’s Emerging Dragon Corp. (AEDC), said the re-bidding will further delay the opening of the terminal, which has been mothballed since 2003.
"There is no need for the government to re-bid the operation of the terminal if the purpose is just to get the highest bid. The government should give the right to operate the terminal to the AEDC because it is the rightful claimant under the law and is ready to pay $300 million," Yasay said in a radio interview.
The $300 million is enough to complete the remaining work on the facility, which Yasay said requires about $70 million. The remaining $230 million would be used to compensate Philippine International Air Terminals Co. Inc. (Piatco), which built the terminal and is locked in a legal battle with the government over the facility.
"But why should the government bid it out? Does the government want more money?" Yasay said.
Instead of subjecting the operation of the terminal to a re-bidding, it should be awarded to the AEDC, Yasay said.
AEDC, which is owned by beer and tobacco magnate Lucio Tan, claims it has the legal right to operate the NAIA-3.
The AEDC submitted an unsolicited offer to build and operate the terminal and this was accepted by the National Economic Development Authority in 1996, Yasay said.
It then signed a memorandum of agreement with the Department of Transportation and Communications that year, authorizing the AEDC to proceed with the build-operate-and-transfer project, he added.
However, the AEDC proposal was subjected to a "Swiss challenge" by Piatco, which made a better offer and won the government contract.
Since the Piatco contract was later nullified by the Supreme Court, that left the AEDC offer the only legitimate and existing bid under the law, Yasay argued.
AEDC has offered to compensate Piatco for the cost it incurred in constructing the terminal.
Piatco is asking over $600 million in compensation after the government expropriated the terminal in December 2004 but the government is contesting the figure.
The final figure is being determined by a Pasay City regional trial court, which gave the government permission to take control of the terminal.
The $650-million terminal had been mothballed since 2003 when President Arroyo revoked Piatco’s contract with the government on the grounds that certain terms were illegally renegotiated by her deposed predecessor Joseph Estrada in 1998.