Lawyer asks SC to let AEDC take over NAIA-3 for gov’t to save money

Despite legal setbacks, Asia’s Emerging Dragon Corp. (AEDC) has not given up on the mothballed Ninoy Aquino International Airport Terminal 3 (NAIA-3).

Lawyer Perfecto Yasay urged the Supreme Court yesterday to let AEDC rehabilitate and operate NAIA-3 and save the government billions of pesos in compensation to Philippine International Air Terminals Co. Inc. (Piatco) and other expenses.

Allowing AEDC to take over NAIA-3, Yasay said, will also spare the government from paying P100 million to contractor Takenaka Corp. and another P100 million for the completion of the project.

The SC heard yesterday the oral arguments regarding AEDC’s petition for mandamus seeking the awarding of the NAIA-3 contract to AEDC.

Yasay said that under the Build-Operate-Transfer (BOT) law, the AEDC has the right over the airport terminal contract because it was the original project proponent.

"The AEDC has faithfully complied with the requirements of the law. The only reason why it failed to get the contract is it fell victim to the blatant anomalies and irregularities," Yasay told the SC.

"The bidding process was riddled and it rewarded Piatco and unjustly punished the AEDC," Yasay said.

He said the AEDC is willing to shoulder the needed P200 million to pay Takenaka and complete the project.

"The government said that it would take another P100 million to complete the project and there is another P100 million that government has to pay to the general contractor Takenaka," Yasay said.

Yasay said AEDC is even willing to pay Piatco the actual costs that it spent for building NAIA-3.

Yasay also agreed with the contention of Ilocos Sur Rep. Salacnib Baterina that the expropriation proceedings before the Pasay Regional Trial Court (RTC) must be nullified by the High Court.

"Personally, I think this honorable court must abandon and order the nullification of the expropriation proceedings because the land (where NAIA-3 stands) is owned by the government," Yasay said.

He said allowing government to expropriate NAIA-3 would be unlawful.

"For government to expropriate its own land will be unlawful. To allow Piatco to profit will be unconscionable. To pay just compensation to Piatco would be to award the contract," Yasay said.

He said awarding the contract to the AEDC, a consortium led by businessman Lucio Tan, would allow the government to save funds while having the project completed.

"The awarding of the project to the AEDC would also insulate the government from more claims from Piatco, which is pursuing a $500 million claim against the Philippine government before an international trade arbitration tribunal," he said.

"AEDC is willing to reimburse Piatco, but not for the entire sum it claimed, but only a quantum merit or the actual cost of work done by Piatco," Yasay said, adding the AEDC had spent P180 million in preparing the project alone.

But Associate Justice Romeo Callejo said AEDC never won the bidding or signed the contract and thus should not be given automatic rights over NAIA-3.

Callejo added the petition for mandamus filed by AEDC was the same case that was dismissed by a Pasig City court in 1999.

"AEDC was entitled to award of the contract, not because it won the bidding but because it is allowed under the law. The original proponent is given special preference for the award of the contract, so that if there is a lowest bid, it is allowed to match the lowest price," Yasay said.

Meanwhile, the special commission tasked to determine the total "just compensation" for Piatco has asked a Pasay court to give its members more time to prepare the criteria for choosing appraisers.

Commissioners Fiorello Estuar, Sofronio Ursal and Angelo Panganiban told Judge Jesus Mupas that an intelligent choice of appraisers would require more time and effort.

The appointed appraisers will be required to submit a report within 60 days from the date of their appointment.

Estuar, a structural engineer, was a former public works secretary. Ursal was an official of the Commission on Audit while Panganiban, an aeronautical engineer, used to be a Philippine Air Force pilot.

The government took over NAIA-3 in late December 2004 shortly after the SC nullified its build-operate-transfer contract with Piatco. The Arroyo administration junked the Piatco contract, citing some anomalous provisions inserted into the deal during the term of deposed President Joseph Estrada.