The earlier we talk, the better, Palace tells Piatco

Malacañang welcomed yesterday reports that the Philippine International Air Terminals Co. (Piatco) would not likely appeal the Supreme Court decision nullifying its controversial build-operate-transfer agreements with the government.

But Presidential Spokesman Ignacio Bunye clarified that Piatco has not officially expressed interest in negotiating an agreement over the government’s looming takeover of the still incomplete Ninoy Aquino International Airport Terminal 3 (NAIA-3).

"We learned about their interest to negotiate out of court only in the newspapers," Bunye told Palace reporters.

He stressed though that the Cabinet-level panel tasked to work out the government takeover of NAIA-3 is prepared to submit its recommendations to President Arroyo upon the expiry of the period within which Piatco may appeal for a reconsideration of the SC’s decision.

"I believe during their next meeting, (the panel) may have something to report to the President… It’s an ongoing assessment of the situation," Bunye said.

"Ideally, the earlier we talk out of court, the better for all of us. Enough time and enough opportunities have already been wasted," he added.

In an official statement she issued yesterday, the President laid down three policy guidelines on how the government would address the controversial deal.

"The government is ready to handle all attendant problems in this case under effective guidelines of transparency, fairness and full protection of the public interest," Mrs. Arroyo said.

The President announced the government would take over the new facility a day after the high court ruled on May 5 that the construction and concession agreements the government signed with Piatco in 1997 were null and void from the start.

She then created a Cabinet-level panel to study how to take over the completion and management of NAIA-3 with a view to privatizing the facility in the future.

The members of the panel are Executive Secretary Alberto Romulo, Chief Presidential Legal Counsel Avelino Cruz, Transportation and Communications Secretary Leandro Mendoza, Trade and Industry Secretary Manuel Roxas II and Justice Undersecretary Manuel Teehankee.

Mendoza earlier said the government will have to wait until the SC ruling becomes final and executory since Piatco may still file a motion for reconsideration within 15 days after they have received a copy of the SC’s decision.

But Mendoza also stressed that compensating Piatco for building the incomplete facility is a top concern of the government.

The Manila International Airport Authority (MIAA) confirmed that there are still 42 major remedial and construction works that need to be completed before the new passenger terminal could be opened.

MIAA general manager Edgardo Manda said the unfinished works include a ground-to-pilot communication system, generator sets, signages and air field lighting which were identified by quality assurance inspector Japan Airport Consultant Inc.

On May 5, the high court ruled that Piatco was not qualified to participate in the 1997 bidding for the construction and operation of the facility.

The high court also nullified the concession agreement the DOTC and Piatco signed on July 12, 1997, the amended agreement dated Nov. 26, 1999 and three supplemental agreements respectively dated Aug. 27, 1999, Sept. 4, 2000 and June 22, 2001.