For Project Delay: Government to pay PIATCO more than P25 billion

The national government would have to pay more than P25.780-billion to concessionaire Philippine International Airport Terminals, Co. (PIATCO) if it fails to deliver its obligations for the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3 project, a Manila International Airport Authority (MIAA) official said yesterday.

"Failure to meet the obligation is material breach of contract and PIATCO can terminate the contract and claim liquidated damages," Florencio Montalbo, Jr., project manager of the NAIA Terminal 3 Development Project, said during the hearing on the issuance of a preliminary injunction against the eviction of the Nayong Pilipino park concessionaires. The hearing was held at the sala of Pasay City RTC Branch 117 Judge Henrick Gingoyon.

Montalbo was presented as a witness by the Nayong Pilipino Foundation (NPF) led by Executive Director Charito Planas to prove that the Terminal 3 project is a priority government project.

In the contract, the government must work for the immediate transfer of Nayong Pilipino land to the MIAA to give way to the construction of a parallel taxiway and a surface access road, he said.

In fact, Montalbo told the court, the clearing of the park has been delayed at least four times since November last year. "By agreement with the concessionaire, we should have entered Nayong Pilipino last June 28. We are already talking with PIATCO on how (the taxiway and surface access road) would be delivered and fast-tracked in time for the opening of Terminal 3," he said.

The new airport facility is scheduled to open late this year. President Arroyo issued on June 26 E.O. 111 allowing the transfer of 8.6 hectares of the park’s land to MIAA in accordance with the International Civil Aviation Organization (ICAO) flight safety standards. She also said the construction would require the park’s closure "for the safety of the general public and the security of the premises."

Some 80-percent of the park would be obliterated to give way to the Terminal 3 project. Clearing of the area would require the park’s concessionaires to leave. But the concessionaires have opposed the closure and their petition for a temporary restraining order (TRO) was granted by Gingoyon two weeks ago. The TRO expires today.