The city government demanded that Mactan Cebu International Airport Authority (MCIAA) pay its P254-million overdue realty tax and penalties.
The funds, Lapu-Lapu officials said, will be used to finance the implementation of different priority projects in the city.
But MCIAA general manager Angelo Verdan said they would prioritize the repair of the airport runway.
The repair of the airport runway is expected to start in September after the Court of Appeals stopped the Regional Trial Court from implementing a restraining order it earlier issued.
Verdan, however, admitted that the MCIAA has no money to pay its obligation to the Lapu-Lapu City government.
He said negotiations between representatives of Lapu-Lapu Mayor Arturo Radaza and the MCIAA board are ongoing to discuss a possible compromise agreement.
He said that if the Lapu-Lapu City council imposed the penalty based on the Local Government Code, maybe the MCIAA can also ask the council for concessions on the penalty.
Under the Local Government Code, the MCIAA is liable for the payment of real property taxes even for the land used for the runway.
The state of disrepair of the 3,300-meter runway earlier prompted the Philippine Air Lines to threaten to cease all its Cebu operations unless the runway is rehabilitated immediately.
PAL spokesman Simoun Canton Jr. said they are satisfied with recent developments after they aired their concerns over the runway’s state of disrepair. — Freeman News Service