THURSDAY |MARCH 22, 2007 | PHILIPPINES

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Japan firms allowed
to enter Piatco case


A Pasay City court hearing the government’s expropriation case against the builder of the NAIA Terminal 3 has allowed Japanese corporations Takenaka and Asahikosan the right to intervene and actively participate in the case.

In allowing the intervention of the two corporations Judge Jesus Mupas said they are in the best position to tell the court issues related to the expropriation case especially the construction cost of the terminal.

"Takenaka and Asahikosan Corporation, who are both before this Court seeking the payment to then of the amount they believe are due them for the construction cost of NAIA IPT 3, are clearly in the best position to elucidate in the course of this expropriation case what NAIA IPT 3 is composed, and to justify the actual construction cost of the terminal to the Commissioners and to this Court," said Mupas’ two-page order.

Takenaka and Asahikosan were engaged by the Philippine International Air Terminal Corporation Incorporated [Piatco] as construction contractor and procurement supplier for the building of the facility.

To determine the total amount for compensation payment, the lower court has appointed a three-man commission headed by former Public Works secretary Virgilio Vigilar, former Commission on Audit commissioner Sofronio Ursal and Air Force pilot Angelo Panganiban.

The Commission has ordered both parties to submit a list of appraisal firms who will help them in determining the compensation owed to Piatco though no result has been released a year after the body was created.

But in the same order, Mupas denied as moot and academic the prayer of the two corporations filed last August 9, 2006 seeking to prevent the payment of the initial compensation to Piatco last year.

The judge said Piatco has received P3 billion as part of the expropriation payment.

The government through the Office of the Solicitor General [OSG] tried to blocked the payment of the amount in April last year citing among other things the need to thoroughly assess the compensation package and even the collapse of an 80-meter portion of the terminal’s ceiling as proof that the facility has structural problems that needed to be address before any payment is to be made. But the lower court citing an earlier ruling of the Supreme Court junked the motion and ordered the plaintiffs to release the amount through the Land Bank of the Philippines Baclaran branch.

Piatco has sued the Philippine government before Singapore and Washington D.C. arbitration bodies for the payment of the construction cost of the facility which they said cost them US$600 million.

Late last year the firm won a favorable ruling from the Singapore body though the government is appealing the case.

The firm’s German partner, Fraport AG is also suing the government for US$400 million though the government said the actual cost might have reached only US$325 million.

Started during the time of former president Joseph Estrada the project become controversial after the Supreme Court ruled in 2002 that the project was anomalous and disadvantageous to the government.

With a floor area of 182,000 square meters and a passenger capacity of 13 million annually the facility is envisioned to replace Terminal 1 which has only a 4.5 million passenger capacity and 87,000 square meters floor area. – Ashzel Hachero

 
 


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