Home » Aviation » Pay Piatco $175M, Pasay court tells gov’t

The Philippine government should pay the Philippine International Airport Terminals Co Inc (Piatco) US$175 million as just compensation for the takeover of the Ninoy Aquino International Airport Terminal III (NAIA III), the Pasay City Regional Trial Court recently ruled.

Through Judge Eugenio Dela Cruz, the court said that from the amount of $175,787,245.10, the government will deduct the P3.002 billion it had already paid Piatco on September 11, 2006. The amount represents just compensation so that a writ of possession can be implemented by government to take over NAIA III.

“It is worthy to emphasize that the determination of just compensation is limited to the acquisition of the building/facilities or the improvements on the land at the time of filing. It does not include any right or franchise to operate the airport or a right to be paid an increased value due to the inflation rate or any entitlement to interest since Piatco’s concession on agreement with the Republic was declared null and void by the Supreme Court,” the court decision stated.

“Considering that NAIA IPT (international passenger terminal) III suffered from massive structural defects, the fact that construction thereof was never completed by defendant PIATCO, and the existence of evidence showing that funds were used perceively by the defendant in irregularities that attended the NAIA IPT III contract, equity dictates that the costs for repair and completion of the NAIA IPT III , as well as the amounts used in fiddlings must not be included in computing the amount of just compensation… compensation must be just not only to the property owner but also the public which ultimately bears the cost of expropriation,” the court said.

The payment required by the Pasay court is so much less than the $842,799,087.00 Piatco claims government owed it but is more than the $149,448,037 which government claims it only owed PIATCO.

In November, 2010, the Philippine government said that the cost of construction valuation of NAIA III should be reduced due to Piatco’s non-compliance with contract specifications.

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