SC orders Piatco to answer government appeal on compensation ruling

MANILA, Philippines - The Supreme Court (SC) yesterday ordered the Philippine International Air Terminals Co. Inc. (Piatco) to answer the government’s motion to reconsider its order for payment of just compensation amounting to over $510 million for the expropriation of Ninoy Aquino International Airport Terminal 3.

Justices decided in session to require the NAIA 3 builder to submit its comment to the Office of the Solicitor General’s motion to lower the amount of compensation to about $104 million.

The SC gave Piatco 10 days from receipt of comment to comply with the order, according to an insider.

In its motion last week, the OSG argued that the interests amounting to $242,810,918.54 and the amount of $113,944,044 representing non-compliance with contract specifications by Piatco should be deducted from the principal amount.

Instead, it asked the SC to fix the just compensation for Piatco at $163,959,441 less the proffered value of $59,438,604 already paid to Piatco, or $104,520,837.

To impose a 12-percent interest would be tantamount to allowing Piatco to profit by its own misdeeds, the OSG said.

While the government is willing to pay just compensation, the SC should make sure that Piatco holds a clean title so as not to overlook other claimants who are interested in a portion of just compensation, the OSG added.

Among these claimants were Fraport, an equity investor of Piatco for the NAIA IPT III project; and Takenaka and Asahikosan, the subcontractors which actually built the NAIA IPT III facility.

Fraport has sued the government several times before the international arbitral tribunal, while the dispute between Piatco and Takenaka and Asahikosan is still pending before the SC.

The SC should declare that any claim by Fraport, Takenaka and Asahikosan is enforceable only against the money to be paid by the government to Piatco, the OSG said.

Upon payment of just compensation, the SC  should also award full ownership of the airport facility to the government free from any obligations to any of the claimants, the OSG said.