AEDC seeks transparency in NAIA-3 deal

Businessman Lucio Tan’s Asia’ Emerging Dragon Co. (AEDC) expressed support yesterday for the immediate opening of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) this month, but called on the government "to make public any agreement it entered into to achieve the objective.

"Again, the government is rushing to open the airport terminal. Our concern here though is at what cost will the government undertake to achieve that objective. A settlement with Piatco? And what about its obligation with AEDC?" asked lawyer Perfecto Yasay Jr., AEDC lead counsel.

Earlier, Trade and Industry Secretary Peter Favila said the government and other parties involved in the dispute over NAIA-3 are close to signing an agreement for its immediate opening.

"What is the content of this agreement? I hope they have nothing to hide," Yasay said.

The lawyer insisted the government has yet to answer legal questions regarding the airport. "It is not enough for government to make an announcement of an opening. What is needed is the complete detail of transactions with people they are dealing with. They should be transparent with the dealing with Piatco because this concerns taxpayers."

Press Secretary Ignacio Bunye said NAIA-3 may finally open this month as the administration is determined to pursue all means within the law to put the terminal into operation at the soonest possible time for the satisfaction of all stakeholders.

However, Favila expressed concern that foreign and domestic airlines may not be able to immediately use the new facility since they would have to relocate from the old terminal.

Airlines companies had asked for at least six to nine months to transfer their operation to the new terminal.

The government took control of NAIA-3 in December 2004 following a Supreme Court ruling that voided the contract to build the facility for having questionable provisions.

The government initially set June 2005 for the opening of the NAIA-3, but this was reset to October, then to December last year.

It was scheduled for soft opening last March 31, but was cancelled after a portion of the terminal’s ceiling collapsed.

The Supreme Court last March denied with finality the government’s second appeal to reverse the lower court’s ruling that required it to compensate Piatco P3 billion for building NAIA-3.

Government had claimed that Takenaka Corp. and Asahikosan Corp., subcontractors in the terminal project, were more entitled to compensation than Piatco.

Two international arbitration proceedings remain pending against the government, which the court took judicial notice of in its decision. The first is with the International Center for the Settlement of Investment Disputes, where Piatco’s German investor, Fraport AG, claims to have invested about $425 million and seeks the same amount, plus damages and profits.

Piatco also has a pending request for arbitration before the International Chamber of Commerce, seeking to enforce its contract to build NAIA-3 as binding on the government and to direct it to allow Piatco to facilitate and support its operation of the facility. — Non Alquitran