No PIATCO payment without just compensation

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GOVERNMENT will pay the Philippine International Air Terminal Company, Inc (PIATCO) but only after the issue of claims is settled, Transportation and Communications undersecretary Ruben Reinoso, Jr said last week.

The resolution of just compensation is now the government’s priority, he stressed.

PIATCO is seeking compensation from the Philippine government following a Supreme Court decision nullifying contracts awarded to it for the construction, operation and maintenance of Ninoy Aquino International Airport Terminal 3 (NAIA T3) due to violations of the Philippine Constitution and laws. Subsequent cases were decided in favor of the Philippine government by arbitration courts in Washington and Singapore.

As for the PIATCO proposal for an out-of-court settlement and a joint venture to operate NAIA T3, Reinoso said “that is up to the lawyers to decide. All we want is to make the terminal fully operational.”

Government, he added, may resort to borrowing or privatization of the airport to pay PIATCO. He admitted the Manila International Airport Authority is not capable of operating NAIA T3 on its own.

At the Kapihan sa Aloha last week, PIATCO president Jennifer Bote said the company has two options if Malacañang agrees to an out-of-court settlement: a lease-back agreement requiring recovery of the terminal before PIATCO can lease it back to government; and the no-cash out scheme that calls for a joint-venture agreement between PIATCO and the government.