[MNL] Manila-Ninoy Aquino International Airport - Compiled Threads [Archive] - Page 4

kiretoce

November 25th, 2004, 11:37 PM

Airlines denounce NAIA security
By RECTO MERCENE, TODAY Reporter

The head of the 32-member Airline Operators Council (AOC), representing all international airlines in the country said on Thursday there is a danger of losing more tourists from abroad because the premier airport is implementing redundant and unnecessary security measures.

“Right now, we are under increased security measures at the airport, one factor that might affect the flow of passengers, especially tourists in the country,” according to Leoncio Nakpil, chairman of AOC and head security of Gulf Air.

Nakpil said the Manila International Airport Authority (MIAA) seems helpless in trying to remedy the problem and in this regard, the AOC plans to bring the issue before the powerful International Air Transport Association (IATA) or inform their respective head offices about the matter.

“If the MIAA will not do anything about it, we will go to higher authorities, we will go to the Transportation and Communications Department (DOTC), we will go to our head offices and let our offices go to the concerned agencies like the IATA.”

Nakpil revealed that passenger arrivals have increased by 20 to 30 percent for the whole year, but this figure will double during the peak season from November to January next year.

“There is an additional 15 percent of flights during the Christmas season and this year, we might hit four to five million incoming passengers,” according to Nakpil who added that the projection is an increase from 10 percent last year.

Nakpil explained that tightened security measures going beyond that prescribed by the International Civil Aviation Organization create chaos, that translate into congestions and delays in flights.

The AOC said that sometimes an airline staff had to go through a metal detector five times, which cost the airline money. “In the airline, time is important, for every delay, it costs money, then a chain reaction happens, it causes delay in the passengers, the flight and everything else.”

MIAA general manager Alfonso Cusi said he is calling a meeting among the concerned agencies to look into the AOC’s complaints but said that there is nothing wrong with the security measures being implemented.

“This is just an expansion of the implementation of security measures [being accorded)] on the entry of overseas Filipino Workers and certain airport employees.”

He denied allegations that the increased security inspections would discourage tourists from visiting the country.

Cusi said what the MIAA is doing is implement a security manual, “which is the Bible on security that has been submitted to the International Civil Aviation Organization.”

He said that those affected by the heightened security measures should not complain if what the security personnel are doing are based on the “Bible.”

The bone of contention concerns the way the Philippine Aviation Security Services Corp., a private agency, implements the security procedures such as frisking passengers, staff, crew and visitors at the Ninoy Aquino International Airport Terminals 1 and 2.

absent-minded

November 26th, 2004, 05:11 AM

damn it! when are they gonna friggin stop complaining...? they complain when security is lax but continue ranting on when officials react and work to solve these complaints. what the hell...?!! why don't we just get the USA's TSA and these airlines to run NAIA. geez...!

federal

November 26th, 2004, 01:36 PM

i AGREE very much on what the articles has said... As i have said before, there are at least 5 security checks before you board your flight in NAIA as compared with KLIA's 2 at most (one at the gate, and virtually no XRAY or metal detectors at the departure hall entrance... while everyone can go in!)

1. at the terminal entrace(either side be it east or west wing), passport check by guards at the door
2. X-ray check with metal detector with moderate frisking my guard stationed adjacent to metal detector. shoes are even checked at this point.
3. Red Zone Check.... again, passport check by guards before entering terminal fee area
4. Concourse check.... metal detector, XRAY AGAIN before entering terminal concourse.... heavy frisking is done (as if you can make a bomb inside the terminal between the departure hall and concourse entrance!?). even belt is asked to be removed sometimes! Shoes also... Passport and ticket check AGAIN.
5. Upon getting to the gate, going down the STATIONARY escalator, check again. They make butingting your things... and then my favorite, AGAIN, passport and ticket check by the guards...

GRABE!!!! I hate NAIA

ryanr

November 26th, 2004, 01:41 PM

The entrance of NAIA T1 is horrible....a total travellor's nightmare as you have to line up (sometimes for up to an hour) before you can get into the terminal! nakakahiya talaga.

rico

November 26th, 2004, 05:25 PM

omg. i may have to use naia terminal 1 this december. the last time i used t1 was in 2000. i've been using t2 lately.

i'm scared.

federal

November 27th, 2004, 01:55 AM

rico

November 27th, 2004, 03:38 AM

hey rico, where you going this Dec.? am leaving for LA this XMas.. China Airlines lang ako kasi cheap.... so T1... damn
btw, be scared rico... haba ng pila outside lalo na kung mga long-haul flights na sabay-sabay... tapos be careful with your cart... pagnalubak kasi dun sa area... walang tutulong. kanya-kanya
i'm flying eva air from fukuoka->taipei->manila and eva air again from manila->taipei->fukuoka. i tried getting philippine airlines but they're all booked already.

thanks for the warning. i'll be very careful. :(

kiretoce

November 27th, 2004, 04:02 AM

I wonder what's the reasoning with all those security checks, it seems overboard to have five different checkpoints from the check-in counters to the boarding gates. It seems just a waste of time, personnel and money for the whole thing.

ryanr

November 27th, 2004, 06:39 AM

btw, be scared rico... haba ng pila outside lalo na kung mga long-haul flights na sabay-sabay... tapos be careful with your cart... pagnalubak kasi dun sa area... walang tutulong. kanya-kanya

I know!! There are "potholes" on the pavement where ppl form a line and whenever my cart falls into one of them, nobody helps me pick up my bags. It really sucks. I hate that place...so crowded, very little space, yuk!

renell

November 27th, 2004, 06:50 AM

I've gotten used to it. 2-3 hour wait.... well we are in the Philippines if we go to T1 :D

jbkayaker12

November 27th, 2004, 07:32 AM

Kiretoce>>>>all these security checks to please good ole USA! Quite frankly Im not complaining. I would rather arrive in my destination in one piece than not to have arrived at all!

Now out of curiosity, how do they handle security checks as far as the maintenance and preparation of aircrafts for takeoff outside the terminal?

Pearl of the Orient Seas - The Philippines (http://community.webshots.com/user/jbkayaker12)

Jon

Solblanc

November 28th, 2004, 01:25 PM

I dreamt last night that NAIA-3 just opened. Out of magic, it just opened.

This has gone way too long :D

absent-minded

November 29th, 2004, 09:59 AM

I dreamt last night that NAIA-3 just opened. Out of magic, it just opened.

This has gone way too long :D

I'd freak out if it suddenly does open tomorrow...! hahahaha...!!! that would be so crazy...!

ryanr

November 29th, 2004, 10:45 AM

I dreamt last night that NAIA-3 just opened. Out of magic, it just opened.

This has gone way too long :D

lol...this issue has come into a point where its even in your dreams:D

renell

November 29th, 2004, 12:16 PM

It's gotten to a point where i've lost any interest whatsoever in it.... :no:

federal

November 29th, 2004, 02:17 PM

same here.. nasasaktan lang puso ko... everytime this thread is in bold letters.... waiting for new news about it

thomasian

November 29th, 2004, 02:47 PM

It's gotten to a point where i've lost any interest whatsoever in it.... :no:

me too.

absent-minded

December 1st, 2004, 03:08 AM

http://img69.exs.cx/img69/1766/NAIA-T3.jpg

:bash: it makes me mad to see Terminal 3 just rotting away there... sigh... taken recently - a week or so ago.

there are a bunch of other pictures of Terminal 2 and Cebu-Mactan In'l Airport in this thread (http://philskies.net/forum/viewtopic.php?p=37443&sid=e1ce85f4a044998a497f52a44c31cdfe#37443) over at philskies. NAIA-T2 actually looks real nice in these recent pictures. I didn't remember it being like that last June when I took PAL...

ryanr

December 1st, 2004, 09:12 AM

The terminal is still in very good condition; its just that its a waste to have it inactive.

ron_guevara

December 1st, 2004, 10:26 AM

Just wanted to know, how long does it usually take you to get out of NAIA T1 and/or T2 (that is, out of the terminal) from the moment you deplane?

I've only used T1, and since last year it usually takes me about 30 minutes, I think.

It seems quicker now compared to about 10 years ago, when we usually fetched our Dad when he comes home from abroad. Seems like it took at least an hour before we saw him come down the ramp, and the T1 waiting area was very uncomfortable then (I don't know now).

ryanr

December 1st, 2004, 10:53 AM

kiretoce

December 1st, 2004, 03:43 PM

http://img69.exs.cx/img69/1766/NAIA-T3.jpg

sigh....so close and yet so far....:cry:

renell

December 2nd, 2004, 02:28 AM

T1 is a small terminal, so you expect to go fast there. however immigration might take half an hour. there are numerous queues, but it takes slow last time i went there. baggage claim well it depends.

expect T3 to be longer because you have to walk further.. that's my guess

ryanr

December 2nd, 2004, 12:10 PM

expect T3 to be longer because you have to walk further.. that's my guess

I dont think so. They have travelators, more immigration counters and better baggage claim belts. I think it will be faster and much more efficient. Singapore and HK airports are huge airports but very efficient.

renell

December 2nd, 2004, 12:56 PM

indeed there are travellators, but remember T3 is much bigger.

Immigration may have a lot of counters, but processing one person may take a long time.

kiretoce

December 16th, 2004, 05:10 PM

NAIA anti-crime task force activated
By Sandy Araneta, The Philippine Star 12/16/2004

The Manila International Airport Authority (MIAA) has activated a task force dedicated to monitoring and apprehending suspected criminals and terrorists at the Ninoy Aquino International Airport (NAIA) during the Yuletide season.

Through the help of the Aviation Security Group of the Philippine National Police, the airport authority, led by General Manager Alfonso Cusi, has enhanced security measures to ensure peace and order and a crime-free airport during the holidays.

Chief Superintendent Andres Caro II, director of the ASG, wrote a memorandum to Cusi last Dec. 8 recommending the activation of "Task Force Masid-Paskuhan."

Caro cited the expected influx of passengers at NAIA Terminal 1 and NAIA Centennial Terminal 2 as well as the Manila Domestic Airport during the holidays.

"This poses a significant concern to the MIAA and ASG as unscrupulous personalities, criminal elements or terrorist groups may take advantage of the situation to victimize balikbayans, overseas Filipino workers, tourists and other passengers at the airport complex," he said.

In his action plan, Caro noted that the influx and convergence of passengers and the public at the NAIA complex during Christmas requires vigilance and increase of security coverage operations.

He said the ASG and MIAA, being lead agencies tasked with the maintenance of peace, order and public safety at the NAIA complex shall undertake enhanced security measures and visibility patrols toward the attainment of a crime-free airport during the holiday season.

The MIAA Airport Security Center (ASC) is tasked to assess and prepare the necessary contingency plan.

For their part, the Airline Operators’ Council (AOC) shall provide airline information of scheduled flights and non-scheduled flights to the Task Force through the ASC.

They are also tasked to provide intelligence updates, incident reports and passenger reports and complaints to the task force commander.

The Emergency Operations Center (EOC) of the MIAA shall conduct monitoring activities using the closed circuit television (CCTV) against unscrupulous individuals plying the arrival and departure areas.

The commanders of Task Groups Terminals 1 and 2 and Manila Domestic Airport shall oversee the general situation at the terminals, including the parking areas.

Caro’s plan was recommended for approval by Ret. Gen. Angel Atutubo, MIAA assistant general manager for security and emergency services.

kiretoce

December 18th, 2004, 01:15 AM

Interpreters deployed at NAIA & Mactan airport

Tourism Secretary Joseph Ace Durano recently ordered the deployment of multi-lingual interpreters in the Ninoy Aquino International Airport (NAIA) and Mactan International Airport in Cebu to provide assistance to arriving Chinese, Japanese, and Korean tourists.

Under the Department of Tourism’s "Meet and Assist Program," the interpreters will provide multi-lingual audio and print information to these foreign nationals at the airports’ newly-installed information kiosks. DoT’s project partner Globe Handyphone will also give three-minute-free local calls to balikbayans.

"It is imperative for us to provide excellent service at the country’s point of entry because the first and last impression of tourists towards a destination will depend on how well they are treated at the airport," the tourism chief said.

The interpreters will be available during peak flights originating from China, Japan, and Korea.

The deployment is part of an immediate upgrading of frontline services in the country’s international gateways to cater to the expected huge volume of Chinese, Japanese and Koreans tourists.

Durano said these efforts are all part of his intensified marketing program that aims to maximize the number of arrivals from the most lucrative markets which are Korea, Japan, China and the balikbayan crowd.

According to a report by the DOT Research and Statistics Office, the month of October generated some 319,238 Japanese; 301,192 Koreans and 33,340 Chinese tourists.

absent-minded

December 18th, 2004, 03:17 AM

cool...! I'm sure that'll really help in assisting these tourists at NAIA and making their arrivals and departures go a little smoother. hopefully it'll make up for the poor facilities of terminal 1.

I was reading trip reports of this guy at airliners.net's forums, and he wrote about this just absolutely bizarre encounter in Manila. he was apparently really pissed off at the large and rowdy Korean tour group on his flight into MNL on PAL. anyway, at the immigration counters of T2, there was this Korean guy ahead of him in line that approached the officer with a totally blank immigration card! haha.. imagine how much harder it would be at airports in countries where English isn't even fluently spoken. i'm sure these interpreters will be of great help...

oh... re: those figures at the end of the article. are they correct..? 300,000+ tourists from Japan and Korea in the month of October...?!? then we'd have at least 2,000,000 arrivals from both in a year...

SKYLINEPIGEON

December 18th, 2004, 08:10 AM

not really coz the dot targets tourists arrivals this year to around 3m total and of course the biggest comes from japan and south korea, maybe those figures represents the total arrivals from jan to oct, so we might expect around 1 to 1.5 million japanese and south korean tourists this year or 1/3 or even 1/2 of the total foreigners coming to the country

SKYLINEPIGEON

December 18th, 2004, 08:16 AM

Arriving on T1 is much faster, easier and less stressful than departing from it. It usually takes about 45 minutes to leave the terminal. Depending on how long it takes your luggage to come out.

Arriving in T2 takes longer, though. It only has a few baggage carousels and they sometimes use one for two flights. It is especially frustrating and takes a long time when the long haul flights arrive at about the same time. T2 is very small and is not designed for international flights, so queues tend to be very long and crowded. Expect to be there for more than an hour. Last time i arrived via PAL, i was in T2 for about an hour and 45 minutes.

ya youre right the moment u get out of ur plane u go straight to the immigration counter and if there were no arrivals same time as u, your out of the immigration counter in five to ten minutes and ur there at the baggage carousel, maybe will take the most 20-30 mins to get ur luggages (depensing on how many u have) and ur out of the terminal in abt 45 minutes

renell

December 18th, 2004, 08:29 AM

How about the way in? T1 and T2 compared? :?

absent-minded

December 18th, 2004, 09:49 PM

How about the way in? T1 and T2 compared? :?

I think the worst part about departing from T1 is having to go through the security checks at the door. not really because of the hassle of the security checks (which I myself have no problems with), but because of the huge lines that build up outside. so you're standing there in the heat and/or rain waiting to get in. there is only a very, very small covered area and it gets pretty cramped. the check-in area is quite large and spacious though, compared to newer airports. or maybe it just looks that way. haha...! immigration can at times take a long time and it's common to see airline staff calling out to their passengers cause they need to rush them through to avoid them missing their flights.

at T2, on the other hand, it's the total opposite. they still have the security checks at the door, but the covered area is much, much larger and more spacious - with the high ceiling and brighter design. once you get past the checks, however, the check-in area is (or seems) a lot smaller - even with the more open design and bright natural light - than that of terminal 1 and can get pretty messy when the airport is busy. I believe immigration is pretty much the same, since the int'l departures wing only had two counters when we were there.

ryanr

December 20th, 2004, 08:09 AM

T1 without doubt is much worse than T2 when you are departing. As Lance said, T2 is more spacious than T1 when you enter the terminals. And the queues in T1 are longer and more stressful.

the_sailor_977

December 21st, 2004, 04:00 AM

I would suggest these to airport authorities for proper airport organization:

Terminal 3 (when finally open)--- all international flights (Lufthansa, KLM, Northwest, etc)

Terminal 2 ---Exclusively only for our national carrier, Philippine Airlines, its domestic and international flights

Terminal 1--- All domestic flights except from PAL (Air Philippines, Cebu Pacific, SEAir, etc)

Also, there should be an efficient link between all these 3 terminals, most especially T3 to connect with T1 and T2, because most foreign tourists want to escape the capital, after they arrived in the country and hop somewhere else in the Islands.

By the way, does Air Canada flies to Manila????? Because there is a viable market for Air Canada in Toronto and Vancouver (big Filipino communities and more Canadians express interest in visiting the Philippines). I hope they do, or they will do.

pau_p1

December 21st, 2004, 04:16 AM

well.. I think that is the actual plan.... to have the international flights in T3, PAL in T2, and domestic in T1.....

I don't think Air Canada flies here...

ryanr

December 21st, 2004, 05:27 AM

Air Canada does not fly to Manila. Filipinos and Canadians fly PAL when travelling from Manila to Vancouver...and then take Air Canada or whatever to other Canadian cities.

I thought the plan was to have NAIA 3 take all international flights (including PAL) and then T2 take all of PAL's domestic flights and then have T1 take other domestic flights. I think this is better since T2 gets really crowded from their international flights, especially long hauls. And T2 is really not designed for handling international flights.

Solblanc

December 21st, 2004, 06:01 AM

well, PAL is bullhogging T2. They refuse to leave, which is why T1 is going to operate domestic flights when T3 is open, even though T2 was supposed to take care of all domestic flights and T1 was supposed to be demolished.

However, I really don't see why PAL likes T2 so much, when they get seamless interconnection between flights at the expense of the comfort of those embarking and disembarking at Manila. But then again, PAL has plans to expand T2 along with its fleet (they are planning to acquire A380s, and I'd like to see that connected to an airbridge in T2 without destroying aircraft adjacent to it :D) we'll just see if PAL really intends to stay there indefinitely once T3 opens and also once they get out of receivership and start expanding again.

ewh1

December 21st, 2004, 12:03 PM

From INQ7MONEY.NET

THE PHILIPPINES announced Tuesday that it was expropriating a 650 million-dollar Manila airport passenger terminal project owned by a consortium involving Germany's Fraport AG.

Manila "will provide just compensation for the terminal owners. It has made available three billion pesos (53.57 million dollars) as the downpayment for the facility," the trade department said in a statement.

The government, backed by the Supreme Court, earlier annulled the operating contract with the Philippine International Air Terminals Co. consortium, saying the 1998 document signed by the previous government of Joseph Estrada had been disadvantageous to the Philippines.

so i guess the gov't gave into the demands. Finally maybe the terminal can be opened NEXT YEAR lol

Kiel

December 21st, 2004, 01:40 PM

YEY!!! I'M SO HAPPY! FINALLY!!!! :cheers:

:dance:

It says that it will open in six months, most probably. Finally the government took action :)

ryanr

December 21st, 2004, 02:35 PM

Finally...but i wont celebrate till its actually open.

Six months? i was hoping sooner than that so i can use it in June.

rico

December 21st, 2004, 02:56 PM

Finally...but i wont celebrate till its actually open.

Six months? i was hoping sooner than that so i can use it in June.
yeah. i will also celebrate only when it's actually open.

kiretoce

December 21st, 2004, 04:13 PM

By the way, does Air Canada flies to Manila????? Because there is a viable market for Air Canada in Toronto and Vancouver (big Filipino communities and more Canadians express interest in visiting the Philippines). I hope they do, or they will do.

Canadian Airlines use to fly to MNL but that route was dropped when Air Canada bought out its competitor. So passengers originating in Canada will either have to take a flight out of YVR to MNL on PAL, or use a US carrier, or avail of Air Canada's codeshare partners in STAR Alliance like Singapore Airlines (via SIN), Asiana Airlines (via ICN), Thai Airways (via BKK) and ANA (via NRT).

Crazy4Airplanes

December 21st, 2004, 06:39 PM

there was a featurette at tv patrol last nyt regarding NAIA 3. The government took over the facility na. and the supreme court daw approved of the takeover. If everything goes well daw, the terminal will finaly open in 6 months time. yippeee!!!!!

kiretoce

December 21st, 2004, 06:44 PM

Wednesday, December 22, 2004
Government takes over NAIA new terminal

MANILA -- The Arroyo administration secured from the court Tuesday a writ of possession over Terminal 3 of the Ninoy Aquino International Airport, a government official said.

Executive Secretary Eduardo Ermita said the writ allows government to wrest control over the airport terminal from Philippine International Air Terminal Company (Piatco), the Filipino-German consortium that built the facility.

Six months from now, the public can enjoy the benefits of a faster and world-class airport because President Arroyo has ordered the completion of the unfinished work, added Ermita.

Ermita said government will pay for the cost of finishing the airport.

Terminal 3 has almost been completed, but the Supreme Court has ruled to cancel the contract between the government and Piatco due to alleged irregularities.

Germany's Fraport AG owns a substantial stake in Piatco.

Trade Secretary Cesar Purisima said the government has filed an expropriation case with the Pasay Regional Trial Court, which covers the district where the airport is located.

Under the law, the government could take over the terminal after notifying the defendant and paying a deposit covering the final payment for the property, he said.

"It is the right of the government to expropriate a property that it deems necessary for the public interest," he said. "But one thing is very clear here: The government will pay fair and just compensation."

Ermita said the expropriation was the recommendation of the Policy Group created last October to resolve the impasse between government, Piatco and Fraport AG. Ermita headed the group.

The members were Purisima, Transportation Secretary Leandro Mendoza and Chief Presidential Legal Counsel Merceditas Gutierrez.

He said two months of quiet negotiation preceded the expropriation case and finally the writ of possession issued by the court.

Terminal 3 "belongs to the Filipino people, and President Arroyo has ordered its expropriation in accordance with the law," Ermita added.

"Six months from now or thereabouts, hopefully faster, balikbayans, OFWs (Overseas Filipino Workers), businessmen, tourists, passengers shall enjoy the world-class facilities of Naia 3," he said.

Mendoza, Manila International Airport Authority (Miaa) general manager Alfonso Cusi, airport officials, Pasay Regional Trial Court (RTC) sheriffs, and Commission on Audit (COA) representatives served the writ of possession issued by the Pasay Regional Trial Court.

Solicitor General Alfredo Benipayo said government's move took a long time because "we tried to be fair to everybody but reason dictates that we find out what we are fighting for."

Benipayo said the consortium has asked for US$565 million for the cost of building Terminal 3 while Fraport AG has asked for US$425 million.

He said the government has deposited with the court US$62.343 million (P3.1 billion) representing part of the assessed value of the facility. He said the money is deposited in a Land Bank account.

Benipayo added that government's possession of the facility does not affect the arbitration cases filed by the consortium before the International Chamber of Commerce (ICC), and by Fraport before the World Bank-International Court for the Settlement of International Disputes.

Benipayo further said the Philippine Government has actually raised a counter-claim of US$900 million on both courts.

"We are not waiving any counter-claims. The fight will go on but we will be in possession of the facility," he said.

But he said government will insist that the Pasay RTC judge appoint competent airport engineers to determine the value of the airport.

"It (government possession) is not unfair because we are admitting liability to them," he said, adding that government is willing to give just compensation.

Benipayo said US$15 million maybe needed to rehabilitate the airport and correct the defects earlier identified during the previous negotiations.

He said government, through the airport authority, will operate the facility and that he is not aware of a plan to tap a private firm to help run it.

Ermita said the P3.1 billion-deposit came from the funds of the airport authority and the Department of Transportation and Communications (DOTC) and other agencies may have to be tapped to finance the rehabilitation of the airport.

Benipayo said government is not forcing the consortium to accept government's terms. "It is very difficult to force them into anything. I should know because I have dealt with them," he said.

Ermita said the consortium could always go to court to get a temporary restraining order (TRO) against the government takeover.

Press Secretary Ignacio Bunye dismissed questions on the timing of government's takeover saying it was not meant to ease out the issue on the burial of actor Fernando Poe Jr. from the attention of the public.

"Matagal na ito at mahaba pa (This has been long-standing). It's only now that everything fell into place. What forced our hand is Piatco's (consortium's) statement that they will not negotiate further," he said.

The consortium was awarded the contract to build and operate the new terminal in 1997. The group completed the terminal in 2002, but the Supreme Court nullified the contract last year.

It ruled that the consortium didn't have the required financial assets when it won the contract, and made amendments that substantially changed the original agreement.

jbkayaker12

December 21st, 2004, 09:10 PM

If it all goes to plan the terminal should be operational by the middle of next year or even earlier but then again this is the Philippines. Once the terminal is operational this will definitely be appreciated by everyone.

Now will Philippine Airlines transfer its operations to the new terminal once it opens so that its exclusive terminal can be turned into a domestic terminal? We will soon find out or it could be another headache for the government.

Jon

tyronne

December 21st, 2004, 09:18 PM

good news1 :okay: something to look forward to.

the_sailor_977

December 21st, 2004, 09:39 PM

Open sesame, I mean open that airport! I don't like the idea that the Philippine Airlines might move to T3. Like any other national carriers in the world, they should have their own terminal. It's one symbol of national pride. PAL should kept T2. T1 should be totally transformed into a domestic terminal. If PAL and at the same time, all the domestic flights will be transferred to T3 when it's open, maging mixed nuts na lahat. A world class airport should have a proper organization and different terminals should be well-integrated.

kiretoce

December 21st, 2004, 10:20 PM

/\ I agree. :okay: Carriers here in the US have their own terminals in their hub cities, PAL should have it's own since they're the dominant carrier in MNL. T3 should just be purely International (including foreign low-cost carriers) with the exception of PAL's international operations. T2 exclusively for PAL (domestic and international). And T1 to handle all domestic/chartered flights that are not PAL. :)

tyronne

December 21st, 2004, 10:28 PM

don't they have this plan though to just "close" T1 and just convert it to like a shopping center or whatever? i think i read something like that before.

i like the idea of keeping T2 exclusive for PAL :)

the_sailor_977

December 21st, 2004, 10:42 PM

Aside that PAL is the dominant air carrier in Manila, it is symbol of national pride for our national carrier. Most Southeast Asian cities are like that.

the_sailor_977

December 21st, 2004, 10:47 PM

Canadian Airlines use to fly to MNL but that route was dropped when Air Canada bought out its competitor. So passengers originating in Canada will either have to take a flight out of YVR to MNL on PAL, or use a US carrier, or avail of Air Canada's codeshare partners in STAR Alliance like Singapore Airlines (via SIN), Asiana Airlines (via ICN), Thai Airways (via BKK) and ANA (via NRT).

If Canadian Airlines bought Air Canada (instead of Air Canada bought Canadian Airlines), probably they would continue flying to Manila after the merging. Actually, most Canadians consider that it was a big mistake when Air Canada bought Canadian Airlines (instead the other way around). Air Canada today is not really a profitable company and they undergo a lot of programs just to keep their planes flying.

ewh1

December 21st, 2004, 11:53 PM

Air Canada Actually has plans to go back to Manila. I read it in the Toronto Star online. Apparently Air Canada wants to focus on routes that are underserved with the potential of being very lucrative for the airline such as Tehran, Beirut etc

the_sailor_977

December 21st, 2004, 11:57 PM

Thats a semi-good news. Probably, they have noticed the potentials in Toronto and Vancouver cities, plus the Canadian tourists. The Greater Toronto area alone has more than 140,000 Filipinos, according to Statistics Canada.

ewh1

December 22nd, 2004, 12:15 AM

I actually object to them staying there. It is a beautiful facility but ive heard that it can get very boring in there especially waiting for flights as there is very little stores (which are basically only stalls) and only a hand full of resturants which are only these tiny kiosks with little variety unless they put a 3rd level which i find very unlikely, i don't see this being a enjoyable place to transit. There is also the fact that PAL is expanding and they are gonna need new space. so thats the reason i think PAL should move their international operations there. or better yet, move their entire operation to Terminal 3, that way they actually have a better equipt hub to compete with Singapore, Bangkok etc.

tyronne

December 22nd, 2004, 12:29 AM

It is a beautiful facility but ive heard that it can get very boring in there especially waiting for flights as there is very little stores (which are basically only stalls) and only a hand full of resturants which are only these tiny kiosks with little variety

very good point. i remember when i was flying back from manila to san francisco i was already inside the airport 5 hours before my departure (yeah, i know, i know it was a little early :uh: ) and it was indeed a boring wait for my flight. buti na lang i still have some philippine money left so i just used it all up for phone cards so i could talk to my gf while waiting for my flight. though they have that massage service thing and some small kiosks/stores for souvenirs, there's not much you can really do but to sit down and wait.

the_sailor_977

December 22nd, 2004, 12:59 AM

By the way, the T2 was originally constructed for what?

ewh1

December 22nd, 2004, 01:03 AM

Domestic Operations

absent-minded

December 22nd, 2004, 01:12 AM

Government takes over NAIA new terminal

finally....!! yessss!! haha! this is probably the greatest development in the conflict between the gov't and PIATCo over NAIA-3 so far... I'm crossing my fingers and hoping and praying that nothing majorly unfortunate happens because of this. haha... I'm sure there will still be a few hitches in the coming weeks, but hopefully they will have it opened within sixth months. can't wait to see T3 finally up and running...

this is what they really should've done in the first place. open the facility up under the ownership of the gov't while proceedings in the courts take place to work out the compensation of Fraport and Piatco. in any case, the gov't was to end up owning it anyways because of the forfeiture of the contract, so all they had to figure out was the just compensation for Piatco... I don't understand why both Fraport and Piatco are to be paid similar amounts though. then the gov't would be paying double the amount...

absent-minded

December 22nd, 2004, 01:24 AM

oh... I just read on Manila Bulletin's article (http://www.mb.com.ph/MAIN2004122224908.html) that NAIA-1 will immediately be shut down after NAIA-3 is opened. work on a service road to link T2 and T3 will also be started.

oh.. umm... how is construction of the NAIA-3 expressway going?

Heavily armed members of the PNP Aviation Security Group were on hand to make sure that the take- over was peaceful.

Upon serving the court order, government officials, including Transportation and Communications Secretary Leandro Mendoza, Tourism Secretary Joseph Ace Durano, Immigration Commissioner Alipio Fernandez Jr., and Manila International Airport Authority General Manager Alfonso Cusi, arrived aboard a mini-bus and made an inspection of the site.

"We are now in possession of the Terminal 3," Mendoza said. "We estimate that in the next six months, there will be a lot of work to complete the facility. We hope this will be completed in six months," he added.

...

Three truck loads of heavily armed members of the PNP Aviation Security Group have been deployed to secure NAIA Terminal 3.

that just sounds really funny... cause of the way it is written. haha...! it sounds like they're taking over some land or like initiating an invasion or colonization or something. hehe...!

mhe-ann

December 22nd, 2004, 01:58 AM

I saw a part of the NAIA-3 in the news last night...ang ganda!!! :bow:

kryptonite

December 22nd, 2004, 02:04 AM

good news1 :okay: something to look forward to.
good news indeed! :)

the_sailor_977

December 22nd, 2004, 02:15 AM

so, wala ng T1? Its very ridiculus to have T2 and T3, and then there's no T1.

ewh1

December 22nd, 2004, 02:24 AM

Exactly and i know that you can still use Terminal 1, yes its old but just do a bit of renovations and it can still be used especially since they are renovating the airport and putting in new washrooms, improving the plumbing etc

the_sailor_977

December 22nd, 2004, 02:33 AM

I have read the news that they are going to shut down T1 as soon as T3 will be opened. Since I believe that all the domestic operations will be transferred to T2, what will be the use of T1 at the end?

stephencua

December 22nd, 2004, 02:44 AM

here's an update.. FINALLY!!!!

Government takes over NAIA-3 from Piatco, Fraport
By Sandy Araneta and Marianne Go
The Philippine Star 12/22/2004

The government yesterday took over the $650-million Ninoy Aquino International Airport Terminal 3 (NAIA-3) facilities owned by the Philippine International Air Terminals Co. (Piatco) consortium after a Pasay City Regional Trial Court issued a "writ of possession" for the property.

This came hours only after government lawyers filed an expropriation petition to acquire state possession of the controversial terminal, which has been under international arbitration in Washington and Singapore since last year after Mrs. Arroyo invalidated the "build-operate-transfer" contract of Piatco.

"We are now in possession of Terminal 3. Now we estimate that in the next six months, there will be a lot of work to complete the facility, hopefully to operate in six months," said Transportation and Communications Secretary Leandro Mendoza told in a press conference at the NAIA-3 late yesterday afternoon.

Piatco spokesman Moises Tolentino told ANC television the company is still studying its legal options in response to the government’s move.

Piatco is seeking to revive the canceled contract through arbitration with the government at the International Chamber of Commerce in Paris. Manila and Germany’s Fraport AG, which owns substantial stake in the consortium, have also filed cases with the International Center for Settlement of Investment Disputes in Washington, DC.

Piatco was awarded the contract to build and operate the new terminal in 1997 and its construction was completed in 2002. But the Supreme Court nullified the contract last year due to alleged irregularities.

Immediately after taking possession of the NAIA-3 complex, Manila International Airport Authority (MIAA) general manager Alfonso Cusi said airport authorities working in tandem with private engineering groups and an independent auditing firm will make an inventory of all airport facilities and equipment and check on the airport’s structural integrity.

"That will be our immediate priority. The President has ordered all necessary repairs and completion of pending construction jobs be finished within six months and we will do that," he said, vowing to leave no stone unturned to ensure that the facility will be completed on time and at par with the world’s best airports. Cusi also assured that NAIA-3 "will be purely government (operations)" and no private group will be involved.

In filing for expropriation proceedings yesterday, Cusi disclosed that some P3 billion from MIAA funds was deposited at the Land Bank of the Philippines (LBP) as a requirement made by the Pasay City RTC.

Mendoza assured Piatco that there will be "just compensation" although he refused to give any figure as to how much will be paid. Trade and Industry Secretary Cesar Purisima said in a statement that the government offered a P3-billion downpayment to the consortium.
Show of force
Some 200 heavily armed security personnel of the Philippine National Police (PNP) Special Action Group were deployed in the NAIA-3 compound yesterday. There was also a jeepney load of heavily armed men from the Special Weapons and Tactics (SWAT) of the Aviation Security Group (ASG).

Mendoza said that Mrs. Arroyo gave them marching orders to open the terminal right away. "We really have to determine the structural integrity of the building. You know, the structure of an airport terminal is different (from any other building). Millions of people will be passing by here and we must make sure that there is no problem with regards to safety," he said.

Meanwhile, Executive Secretary Eduardo Ermita, a member of the four-member negotiating team tasked by Mrs. Arroyo to resolve the dispute with Piatco, stressed that the Philippine government has every right to possess NAIA-3, which stands on government property owned by the Bases Conversion Development Authority (BCDA), to serve national public purpose.

Ermita expressed the elation of Mrs. Arroyo for the speedy approval of the expropriation proceedings by the government. "NAIA-3 belongs to the Filipino people and the President has ordered its expropriation in accordance with the law," he said. "Six months from now, hopefully, our overseas Filipino workers (OFWs), balikbayans, business and tourist passengers shall enjoy the world-class facilities of NAIA-3."

He placed the cost to repair and complete NAIA-3 and comply with international aviation standards at $15 million more though he could not say whether MIAA, which would bankroll it, would bid this out to other contractors.

According to Purisima, who had met with representatives of local and foreign business chambers regarding the expropriation move, traders welcome the opening of NAIA-3.

Once the terminal is opened, the present NAIA terminal would be shut down while the Centennial Terminal, which is being exclusively used by the Philippine Airlines, would become the new domestic terminal.

"The DOTC is committed to the President’s vision of a world-class international airport to welcome tourists, OFWs and investors by next year," Mendoza said. "We will work for the issuance of a certificate of compliance to international standards prescribed by the International Civil Aviation Organization." — With reports from Marichu Villanueva, AFP

the_sailor_977

December 22nd, 2004, 02:50 AM

Very good news. So, I am trying to guess what will happen to T1...

kryptonite

December 22nd, 2004, 03:24 AM

They could relocate or trasfer Fiesta Mall to T1. Fiesta Mall is too far from the terminals.

ewh1

December 22nd, 2004, 03:35 AM

what exactly is Fiesta Mall? this is the first time i heard of it

kryptonite

December 22nd, 2004, 03:46 AM

what exactly is Fiesta Mall? this is the first time i heard of it
"Duty Free" mall.

the_sailor_977

December 22nd, 2004, 04:04 AM

They could relocate or trasfer Fiesta Mall to T1. Fiesta Mall is too far from the terminals.

T1 into Fiesta Mall? I really think this does not make sense. It would not be effective at all and it just creates incoveniences to the travelers. Normally, the malls/boutiques/shops should be in the same operating terminal.

Solblanc

December 22nd, 2004, 04:43 AM

T1 into Fiesta Mall? I really think this does not make sense. It would not be effective at all and it just creates incoveniences to the travelers. Normally, the malls/boutiques/shops should be in the same operating terminal.

Fiesta mall is mostly for balikbayans who want to take their relatives shopping with them duty-free, not really for travellers, since NAIA doesn't have that many transit passengers to begin with.

Its good that they are shutting down NAIA-1. it might be mothballed and reopened once the demand is there, but until then, two terminals are more efficient to operate than three. Besides, while NAIA-1 would be a nice domestic airport, it would be a waste of airbridges, and the small planes that use it would have to use the large runway, adding unnecessary traffic to that runway, since there's a smaller one, anyway. (and if it sounds silly that there will be a t2 and t3 without the t1, t2 will just be called 'centennial domestic terminal" and t3 would be 'international' :p)

Oh, as much as I'd like PAL to have its own terminal, T2 is just too small for them. Maybe someday they can have a hugeass airport in clark with remote check-in in fort bonifacio. But until then, a t2-t3 operation would be fine. Besides, PAL domestic is the best, and it has a following of its own.

stephencua

December 22nd, 2004, 04:58 AM

more updates!!

Fraport accuses Manila of breaking the law in expropriating airport terminal
12/22 10:00:22 AM

FRANKFURT,(AFP) - Fraport, the company which operates Frankfurt airport, accused the Philippine government Tuesday of breaking the law in expropriating a terminal that the German company helped build at Manila's international airport.

"Fraport considers the action of the Philippine government as a further flagrant breach of the law," the German company said in a statement.

And it repeated its demand for financial compensation in a long-running legal battle that is currently before the World Bank's International Centre for Settlement of Investment Disputes (ICSID).

Fraport said it wanted a minimum of 350 million euros (465 million dollars) and would "vigorously" pursue its claim.

The German company owns a 30-percent stake in Piatco (Philippine International Air Terminals Co), a consortium set up to build and operate the new terminal at Manila airport.

Earlier, the Philippine government had announced that it was taking over the terminal, which it hoped to open next year, and offered a three billion-peso (53.57 million-dollar) downpayment to Piatco.

But Fraport dismissed the downpayment as insufficient.

The administration of president Gloria Arroyo, in a decision upheld by the Philippine Supreme Court in 2002, annulled the contract awarded to Piato by Arroyo's predecessor Joseph Estrada to build and operate the new terminal.

The current government claims the contract, signed by Estrada, currently under house arrest as he faces charges of massive corruption, went against the interests of the Philippines.

kryptonite

December 22nd, 2004, 06:18 AM

^^ looks like bad news... hope they settle this as soon as possible...

ryanr

December 22nd, 2004, 06:34 AM

I agree with Solblanc. Its better for T2 to be a purely domestic terminal as it is really not designed for international. Well, at least the govt finally took over and will open the terminal in 6 months (hopefully just in time for my trip back to the Philippines, before departing to Canada:D)

and regarding the Fraport case...more bad news. Not only because the govt has to settle legal disputes with Fraport, but it will also damage investor confidence into the country.

pau_p1

December 22nd, 2004, 09:13 AM

yeah this is good news... maybe next year I'll be able to use it if our plan to go to HongKong's Disney pushes through...:D

rmb

December 22nd, 2004, 09:33 AM

T1 must be used...sayang naman ang structure if it will be demolished. How bout making it a cargo terminal? or a duty free shop? but it would be better if it will be used for domestic operations for smaller airline companies who can't afford to pay T2. or for low cost airlines in the future. :)

federal

December 22nd, 2004, 10:49 AM

guys... medyo nagiging sade and sorry state na ang T2... just took a flight from Manila-LAX via PAL... the check-in counter information displays are sira-sira na... some have makeshift cardboards din na lang like saying PR102 LAX hay grabe....

jbkayaker12

December 22nd, 2004, 11:36 AM

Lucio Tan, for someone who owes the government 25 billion in back taxes the government should not give him any preferential treatment regarding his airline or himself.

Jon

Francis20

December 22nd, 2004, 02:26 PM

the article says NAIA 3 will be opened 6 months from now. thatd be cool!!!

kiretoce

December 22nd, 2004, 04:07 PM

oh... I just read on Manila Bulletin's article (http://www.mb.com.ph/MAIN2004122224908.html) that NAIA-1 will immediately be shut down after NAIA-3 is opened. work on a service road to link T2 and T3 will also be started.

I read that article too and here's an excerpt:

"He said that once a decision to open the NAIA 3 is ready, the NAIA 1 operations would be immediately suspended and transferred to NAIA 3 located near the Villamor Air Base."

From what I understand, T1 will suspend operations, not completely shut down, while transferring operations to T3. I think that T1 can still be put to good use, preferrably for domestic flights. :)

kiretoce

December 22nd, 2004, 08:02 PM

Tourism, business leaders back decision to take over NAIA 3

Leaders of the Philippine tourism and hotel industry backed the government’s decision to expropriate the Ninoy Aquino International Airport Terminal 3.

In a letter to President Gloria Macapagal Arroyo, the industry leaders said the government’s decision would boost public and private sector initiatives to promote the Philippines as a major player in the global tourism market.

"We consider this development timely in view of the rising number of foreign travelers being lured to Philippine shores," Alejandro Clemente, president of the Federation of Tourism Industries of the Philippines, and Larry Cruz, chairman of the Hotel and Restaurant Association of the Philippines, wrote.

The new airport terminal was designed to handle 13 million passengers annually and has a multi-storey parking structure capable of accommodating some 2,000 vehicles.

Judge Henrick Gingoyon issued a writ of possession Tuesday afternoon in favor of the Philippine government, following the filing of a complaint for expropriation by the Office of the Solicitor General. The government has expressed willingness to pay just compensation to the airport’s builder, Philippine International Air Terminals Co., Inc. in keeping with a recent Supreme Court ruling.

Tourism experts expressed confidence NAIA T3 will help expand the Philippines’ market share of outbound foreign travelers while offering more comfort and convenience to thousands of overseas Filipino workers.

"We are heartened by the government’s strong political will shown in the full takeover of this multi-million airport facility."

Others who signed the letter of support are Jose Clemente III, vice-president, Philippine Travel Agents Association; Marissa Nallana, president, Philippine Association of Convention Exhibition Organizers and Suppliers; Leo Picaso, president, Philippine Tour Operators Association; Mila Abad, Freedom to Fly Coalition; Tomas Zita Jr., president, The Philippine Hotel Federation, Inc.; Rose Libongco, president, Hotel Sales and Marketing Association; Ruelito Cayamanda, president, Association of Car Rental Companies, Inc. (ACRCI); and Teody Espallardo, president, Manila Japanese Travel Agents and Hoteliers Association.

Foreign, local businessmen hail NAIA T3 decision

Foreign and local businessmen yesterday hailed the Philippine government’s decision to take over the Ninoy Aquino International Airport Terminal 3, saying it is a move in the right direction.

In a statement, the Philippine-US Business Council congratulated the decision of President Gloria Macapagal Arroyo and Trade and Industry Secretary Cesar Purisima.

"Our hope is that by accelerating government’s takeover of the facility, the expropriation move will pave the way for Terminal 3 to be operational in the near future, so that it can begin to serve the needs of Filipino travelers and foreign visitors without further delay," said RP-US Business Council chairman Ramon del Rosario Jr.

"We are equally pleased that the expropriation proceedings come with the assurance from government that it will pay fair and just compensation for the facility."

Peter Wallace, president of Wallace Business Forum, said the expropriation is something that foreign groups have been lobbying for a year now.

"We are glad government finally listened to us. The Philippines is the only country in Asia which does not have good terminal. It will be more costly for government to let it rot."

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation, Inc., said foreign investors would understand the government move to expropriate because the dispute over the facility and its continued non-operation are already an embarrassment to the government.

"Under normal circumstances, businessmen would frown on the use of expropriation."

Philippine Chamber of Commerce and Industry executive vice-president and incoming president Donald Dee said "it is good that government finally took the drastic step."

Industrialist Raul Concepcion has also strongly supported the government decision.

Roxas welcomes NAIA T3 take-over

Sen. Mar Roxas, committee chairman of trade, commerce and economic affairs, yesterday welcomed the government’s move to expropriate the controversial Ninoy Aquino Aquino International Airport Terminal 3 and get the facility working within six months after being idle more than a year ago.

"The government take-over of NAIA T3 and the immediate operation of the terminal is in the best interest of the country, the government and our people."

Roxas, when then the Department of Trade and Industry secretary, led a team of Cabinet members directed by President Gloria Macapagal Arroyo to amicably settle the government’s dispute with the Philippine International Air Terminals Co., Inc., the local private contractor.

Senate Minority Leader Aquilino Pimentel Jr. said the government’s decision to take over NAIA Terminal 3 through expropriation might be justified only if it is prepared to grant just compensation to PIATCO, the builder and investor in the project.

Pimentel said the government’s expropriation of the almost-completed air terminal might not mean the end of the long-running legal dispute over the facility.

As long as the demand of PIATCO and its foreign partner, Fraport, a German contractor/investor, for a reasonable reimbursement of their expenses on the airport facility is not settled, the controversy would persist and continue to hinder the completion of the construction and opening of the terminal, he said.

"Government’s takeover of NAIA T3, if it is meant to run the terminal, is a good preliminary move. But will investors be paid what is due them? Is expropriation the proper remedy? Possession of a build-operate-transfer project that ultimately is government property?"

Government’s control of the aviation facility was made possible by a writ of possession issued by a Pasay City Regional Trial Court following a petition filed by government which exercised its sovereignty over it.

NAIA Terminal 3 had been closed and lying idle since Fraport, the German firm that actually undertook the major construction work on the project, brought its case against the Philippine government and PIATCO before a Washington, DC-based international arbitration court to settle its financial claims on the project.

The help of the Philippine government was sought by Fraport when it had a falling out with PIATCO, the original bidder/contractor of the project.

mysaong03

December 22nd, 2004, 08:34 PM

i dont think t1 will be abandoned, or will be shut down for good... i read an article a year ago that twil be converted into a casino, or somethin like that, an entertainment complex, but i dont know now, maybe considering other proposal like converting it to a domestic terminal could be a very good idea as well....

ewh1

December 22nd, 2004, 11:06 PM

http://money.inq7.net/topstories/view_topstories.php?yyyy=2004&mon=12&dd=23&file=4 yep your right it won't be abandoned i found this

The government has said that once the new terminal is operational the NAIA-1 will be closed for repairs.

the_sailor_977

December 23rd, 2004, 12:38 AM

T1 need to be repaired for sure, but I really hope that sooner after the repair is done, it will be fully transformed into a domestic terminal. Because if T2 will be converted into a new domestic terminal (and PAL will transfer to T3), I doubt that this can accommodate all the domestic flights of Air Philippines, Cebu Pacific Air, Asian Spirit, SEAir, etc.

By the way, is GrandAir still existing?

ewh1

December 23rd, 2004, 01:08 AM

Nope... GrandAir has been bankrupt for a few years now.

absent-minded

December 23rd, 2004, 02:00 AM

oh... okay, so T1 won't be completely shut down after all. I'm sure it is possible to still restore the facility into acceptable international standards. the gov't just needs some money.

re: deteriorating T2. sayang talaga... a few articles have mentioned that management and operations of T3 may be bid out to private companies shortly after it is opened. I hope they do get a third party to run it. sans another huge dispute between the public and private sectors. most airports around the world are run by third-party airport operators anyway, diba? the MIAA should be left to handle security and fees and such only. they should've never been tasked to directly operate the airports...

but then again, look at the MRT systems and the management of operations of the LRTA as compared to the MRTC. are Lines 1 and 2 run by the LRTA themselves?

ewh1

December 23rd, 2004, 03:16 AM

I think the LRT operates and manages the lines 1 and 2 but some of the Maintainance of the trains and such are done by a 3rd party that was bid. im not sure though.

The solution is to sell the MIAA to a private company. its actually in the DOTC plans to privatize MIAA so that should be good

ryanr

December 23rd, 2004, 04:16 AM

MIAA starts survey of Terminal 3 repairs

By ANNA BARBARA L. LORENZO, Reporter
Manila International Airport Authority (MIAA) will start on December 28 its survey of the Ninoy Aquino International Airport Terminal 3 for necessary repairs so the facility can be opened to the public by mid-2005.

MIAA general manager Alfonso Cusi said yesterday preliminary works, such as the creation of inventory guidelines, was ongoing.

"We cannot make an estimate as to how much the necessary repairs will cost until the survey is completed. We can't also tell how long it will take to survey the whole area," Mr. Cusi said.

While he visited Terminal 3 last October, Mr. Cusi said he just "looked around" since there was no chance for a thorough inspection of the airport terrminal.

"Japanese and Filipino engineers will conduct the survey, and are already doing preliminary works," he added.

He also said MIAA would meet with Takenaka Corp., the builder of Terminal 3, for consultation in case of repairs.

Mr. Cusi said the controversial airport could be open within six months as long as there would be no major repairs needed.

"This lawful act of expropriation demonstrates the government's political will to give the public what is due to them, a world-class international airport facility," he added.

Also yesterday, the Department of Justice said the government takeover of Terminal 3 was above board.

In an interview, Justice Secretary Raul M. Gonzalez said although Terminal 3 was still subject to court proceedings, the government through the power of eminent domain, could use the facilities.

"Based on the Constitution, the government can take over the property as long as it can prove that it paid just compensation and the property is for public use," Mr. Gonzalez said.

The government will deposit 10% to 20% of the government's estimated value of Terminal 3 to the Land Bank of the Philippines.

Last Tuesday, the Office of the Solicitor General filed before the Pasay City Regional Trial Court an expropriation petition inspite of pending arbitration proceedings in Washington and Singapore.

MIAA will be the expropriating entity.

Solicitor General Alfredo L. Benipayo said there was still room for negotiations as long as the terms were acceptable to the government.

The state reportedly offered Philippine International Airports Terminals Co. Inc. (Piatco) $350 million for the terminal, after the Supreme Court nullified the company's 2003 contract with the government to build and operate it.

But Piatco reportedly wants $500 million, while its German partner Fraport AG wants $425 million.

The court nullified the contract of Piatco in May 2003 given its onerous provisions. The court pointed out that Piatco got preferential terms not offered to other bidders.

Malacañang, meanwhile, defended the government's move to takeover Terminal 3, saying the Filipino people would greatly benefit from it.

"The constitutional move of the government can only signal better public service and convenience, and greater business confidence," Press Secretary Ignacio R. Bunye said in a statement.

"Tourism and transport will benefit from the opening of NAIA III. More jobs will be created, and there will be good spin off on the investment side," he added.

The Palace also mexpressed confidence that the Pasay court would favor the government in its complaint for the expropriation of the terminal. "The will, welfare, and interests of the people will prevail," Mr. Bunye said.

Meanwhile, some senators also backed the takeover through the filing of the expropriation petition.

Senator Manuel A. Roxas II, who used to be a member of the Cabinet committee created by President Gloria Macapagal-Arroyo in 2002 to review the Terminal 3 contract, noted that the government takeover was long overdue.

"I am supportive of that move. We were recommending that some time ago. The government takeover of NAIA 3 and the terminal's immediate operation is in the best interest of the country, government, and people," Mr. Roxas said in a television interview.

The lawmaker noted that much work was still needed to be done to determine exactly how much the government should pay Philippine International Air Terminals Co. for building Terminal 3 with German partner Fraport AG.

"The only issue is just compensation. The terminal will not be taken away, there is always the principle of just compensation which the government recognize. I think that the government should not pay a single centavo or peso more than what that terminal is worth," Mr. Roxas said.

He added that the opening of the Terminal 3 would not affect ongoing discussions on compensation.

"We did a favor for the government and the people by using the facility and we would follow the principle of just compensation. We need to determine what is just and fair compesation. If we know that the contract value is only $350 million to construct, why should we pay more? The difference between $350 million and $500 million is too large that is why the talks broke down," he said.

Senate Minority Leader Aquilino also backed the takeover.

"It is a good preliminary move but the investors should be paid what is due to them," he said.

He, however, expressed doubt if the expropriation proceeding would end the tiff that has been brought to the World Bank's International Centre for the Settlement of Investment Disputes in Washington and the Interational Court of Arbitration of the International Chamber of Commerce in Singapore.

Also yesterday, the Makati Business Club said President Gloria Macapagal-Arroyo and Trade and Industry Secretary Cesar Purisima should be supported on their decision to take drastic action on Terminal 3.

"Our hope is that by accelerating government's takeover of the facility, the expropriation move will pave the way for Terminal 3 to be operational in the near future, so that it can begin to serve the needs of Filipino travelers and foreign visitors without further delay," the club said in a statement.

"We note with approval that the expropriation proceedings come with the assurance from government that it will pay fair and just compensation for the facility as order by the Supreme Court. We urge the government to assure that the facility will be operated and managed according to international best practices by experienced and competent managers," the business group added.

It noted that the results of its Business Opinion Survey series released last week revealed that a large number of Filipino and foreign businessmen respondents belonging to various major business organizations wanted the government to address this infrastructure problem by next year.

Moreover, at the November meeting of the Makati Business Club with the Nippon Keidenren Mission, and at the September meeting of the RP-US Business Council with the US-ASEAN Business Council, the early opening of Terminal 3 was identified as one of the key infrastructure projects that would help stimulate renewed investor interest in the Philippines.

"It is most gratifying that concrete action has now been taken on this key recommendation," the club added. -- with Ma. ELisa P. Osorio, Jeffrey O. Valisno and Carina I. Roncesvalles

ryanr

December 23rd, 2004, 04:34 AM

Fraport cries foul; others hail expropriation of NAIA-3

The Philippine Star 12/23/2004

Fraport AG of Germany, the company which operates the Frankfurt airport, accused the Philippine government yesterday of breaking the law in expropriating the Ninoy Aquino International Airport Terminal 3 (NAIA-3) that the firm helped build in Parañaque City.

"Fraport considers the action of the Philippine government as a further flagrant breach of the law," the German company said in a statement from Frankfurt.

But the government said its takeover of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) was legal.

"The constitutional move of the government can only signal better public service and convenience and greater business confidence," President Arroyo’s spokesman Ignacio Bunye said.

"The will, welfare and interests of the people will prevail," he added. "This is a historic day for the political and economic prestige of the Philippines."

Fraport, in its statement, reiterated its demand for financial compensation in a long-running legal battle that is currently before the World Bank’s International Centre for Settlement of Investment Disputes (ICSID).

It said it wanted a minimum of 350 million euros ($465 million) and would "vigorously" pursue its claim.

The German company owns a 30-percent stake in the Philippine International Air Terminals Co. (Piatco), a consortium set up to build and operate NAIA-3.

In a surprise move, the government announced on Tuesday afternoon that it was taking over the controversial terminal, which it hoped to open next year, and offered a P3-billion ($53.57-million) downpayment to Piatco.

But Fraport dismissed the downpayment as insufficient.

Piatco is actually seeking a compensation amounting to $530 million but Sen. Mar Roxas, chairman of the Senate committees on trade and commerce and on economic affairs, has maintained that the amount is "excessive, inflated and grossly disadvantageous to the government and the taxpaying public."

He said the government is prepared to pay only $360 million, which is the amount of the original bid.

"I think the government should not pay a single centavo or peso more than what the terminal is worth. If we know the contract value is only $350 million, why should we pay more?" he asked.

Roxas recalled that to settle the dispute, the government had offered to get three independent and reputable foreign engineering appraisers to provide reasonable estimates as to the cost of NAIA-3.

The government, he said, was then willing to pay any amount representing the midpoint of the three estimates, but Piatco rejected the idea of involving independent appraisers.

"This is the same adopted by the United Nations in determining a project cost — to get varying estimates from multiple appraisers and then peg the cost at the midpoint of those estimates," Roxas pointed out in a statement. Legal Tussle
The legal counsel of Piatco accused the government yesterday of railroading the court proceedings at the Regional Trial Court (RTC) in Pasay City as they took possession of NAIA-3 facilities.

"The government of the Republic of the Philippines railroaded the proceedings before the RTC of Pasay City. They made it appear that the service of notice to Piatco done at 3 p.m. was legitimate and a sincere one," former solicitor general Francisco Chavez, Piatco’s legal counsel, said in press statement.

Chavez decried that while the writ of possession had not been officially issued, several members of the Philippine National Police-Aviation Security Group (PNP-ASG) and members of the media were already converging at the NAIA-3.

At around 5 p.m., government representatives entered the NAIA-3 premises, which, he said, was a clear case of trespassing into private property.

The Arroyo administration, in a decision upheld by the Supreme Court in 2002, annulled the contract awarded to Piatco by deposed President Joseph Estrada to build and operate the new terminal. It claims that the contract went against the interests of the Philippines.

Chavez is asking though why the government refuses to return the P780 million that Piatco paid pursuant to the contracts which it claims are null and void.

"The government has malversed Piatco’s P780 million and now it has stolen NAIA Terminal 3," Chavez charged.

Meanwhile, Executive Secretary Eduardo Ermita yesterday gave assurances that no private parties or vested groups were behind the government’s takeover of NAIA-3.

The concerns were raised following the government’s payment of a P3.1-billion bond deposit for the expropriation and the enforcement of the writ of possession for the property.

Ermita explained that the government had taken these moves with prior budget provisions.

Even opposition senators welcomed the government’s takeover of the $650-million facility. However, Senate Minority Leader Aquilino Pimentel Jr. said that the move may be justified only if it is prepared to grant just compensation to the project’s investors.

"Government’s takeover of NAIA-3, if it is meant to run the terminal, is a good preliminary move. But will investors be paid what is due them? Is expropriation the proper remedy?" Pimentel asked. Takeover Supported
Meanwhile, ten of the tourism industry’s biggest associations announced their full support to Malacañang’s move to take over NAIA-3. In a letter addressed to Mrs. Arroyo, they said the move was timely "in view of the continued increase in international tourist arrivals, especially during the holiday season."

The new terminal, they added, would allow the country to accommodate more tourists in the country.

The signatories were representatives of the Federation of Tourism Industries of the Philippines (FTIP), Hotel and Restaurant Association of the Philippines (HRAP), Philippine Travel Agencies Association (PTAA), The Philippine Hotel Federation (TPHFI), Philippine Association of Convention Exhibition Organizers and Suppliers (PACEOS), Hotel Sales and Marketing Association (HSMA), Philippine Tour Operators Association (PHILTOA), Association of Car Rental Companies Inc. (ARCI), Freedom to Fly Coalition (FFC) and the Manila Japanese Travel Agents and Hoteliers Association (MJTHA).

The business community also welcomed the takeover of the disputed facility and said it hopes that government can pave the way for the operation of the facility in the near future.

Ramon del Rosario, of the Philippine-US Business Council, said that NAIA-3’s opening would help stimulate renewed investor interest in the Philippines.

Although business leaders generally frown on an expropriation, Sergio Ortiz-Luis, president of the Philippine Exporters Confederation Inc., said the delay in the arbitration and settlement of the dispute has brought embarrassment to the government and the country as a whole.

The Manila Business Club for its part said that Mrs. Arroyo and Trade and Industry Secretary Cesar Purisima should be supported on their decision on NAIA-3 so that it can "begin to serve the needs of Filipino travelers and foreign visitors without further delay." — AFP, Marichu Villanueva, Sandy Araneta, Jose Rodel Clapano, Marianne Go

SkylineTurbo

December 23rd, 2004, 04:35 AM

It's good Ninoy Aquino airport has a new terminal, I used T2 in 2002 (going to Palawan), it's ok.

stephencua

December 23rd, 2004, 07:33 AM

i hope that they also start the construction of the connection of the MRT/LRT to the NAIA terminal.. that would be great..

stephencua

December 23rd, 2004, 10:53 AM

Arroyo orders speedy repair of NAIA 3

Updated 04:21pm (Mla time) Dec 23, 2004
By Lira Dalangin-Fernandez
INQ7.net

Get INQ7 breaking news on your Smart mobile phone in the Philippines. Send INQ7 BREAKING to 386.

PRESIDENT Gloria Macapagal-Arroyo has ordered the Department of Transportation and Communications (DOTC) and the Manila International Airport Authority (MIAA) to speed up repair and construction work on the Ninoy Aquino International Airport Terminal 3 to make it operational in six months.

The President’s order was coursed through Executive Secretary Eduardo Ermita, who met with DOTC Secretary Leandro Mendoza and MIAA general manager Alfonso Cusi Thursday morning, according to Press Secretary Ignacio Bunye.

The repair and rehabilitation of the Terminal 3 will be done in coordination with the Department of Public Works and Highways, Bunye added.

“DOTC Secretary Mendoza and GM Cusi assured me that they will fast track the correction of some deficiencies of NAIA 3 to ensure the new airport’s structural integrity,” Ermita said.

MIAA took over NAIA 3 after getting the go signal from the Pasay City Regional Trial Court.

The German firm Fraport AG, which owns 30 percent
Print this story
Send this story
Write the editor
View other stories

of the consortium that built the terminal, said the Philippine government’s action was a breach of the law.

The modern terminal has been unused since major building work was completed in 2002.

Ermita said the Office of the Solicitor General would take care of all the legal issues that would arise from the court’s decision, including the payment of compensation to the consortium, Philippine International Air Terminal Corporation (Piatco).

“There is question that we will provide just and fair compensation to Piatco. In fact, this is what the government intends to do. All parties to this case will be guided by the court’s ruling on this matter,” Ermita added.

stephencua

December 23rd, 2004, 10:54 AM

Court appointed body to determine price NAIA3--official
Posted: 4:39 PM | Dec. 23, 2004

A PHILIPPINE court-appointed commission will decide on compensation owed to a consortium including Germany's Fraport AG for a 650 million dollar airport terminal built by the group but taken over by the government, an official said Thursday.

Transportation Secretary Leandro Mendoza brushed aside charges by Fraport that the expropriation broke the law and rejected its demands that the government should pay a minimum of 350 million euros (465 million dollars) for the still-unused terminal.

"The court will form a commission with three members to determine the just compensation for PIATCO," Mendoza said, referring to the Philippine International Air Terminals Co., the consortium that built the terminal.

PIATCO is 30-percent owned by Fraport, which operates Frankfurt's airport.

Mendoza said his department "recognizes the right of PIATCO for a just compensation and will do so after a competent court has determined its real market value."

But he also stressed that "the DOTC (Department of Transportation and Communications) has to strike a balance between upholding the interest of investors and protecting national interest."

"In this particular case, the DOTC has reached the limit of its tolerance. The DOTC will not allow anybody to make the public a hostage victim," Mendoza said.

Mendoza hoped the new terminal at Manila's international airport would be operational within six months.

The government said Tuesday that it would take over the terminal and offered a three billion-peso (53.57 million dollar) downpayment to PIATCO as compensation.

But the consortium accused the government of breaking the law in expropriating the terminal, and dismissed the downpayment as insufficient.

Fraport repeated its demands for financial compensation in a long-running legal battle that is currently before the World Bank's International Centre for Settlement of Investment Disputes.

In a separate statement, PIATCO's lawyer Liwayway Vinzons-Chato warned that the government could vandalize the terminal "to manipulate the compensation that would be eventually adjudicated".

She said the government had acted in "bad faith" by taking over the terminal, even while negotiations with the consortium were still being pursued.

The government, backed by the Supreme Court, had earlier annulled the operating contract with PIATCO, saying the 1998 document signed by the previous government of Joseph Estrada had been disadvantageous to the Philippines.

The terminal has been left unused since major building work was virtually completed in 2002.

Crazy4Airplanes

December 23rd, 2004, 08:43 PM

guys!!! Another major update!!! It seems na tuloy na nga coz it was just reported in the Philippine star that NAIA terminal 3 WILL open in six months. read the entire artice.

NAIA-3 to open in six months
By Rainier Allan Ronda
The Philippine Star 12/24/2004

The Ninoy Aquino International Airport -Terminal 3 (NAIA-3) will be operational in six months, Transportation Secretary Leandro Mendoza said yesterday.

The Department of Transportation and Communications (DOTC) is one of the three government agencies tasked by President Arroyo to take charge of the repair and completion of the unfinished structures of NAIA-3 and ensure its opening in six months. The other two are the Manila International Airport Authority (MIAA) and the Department of Public Works and Highways (DPWH).

Mendoza, DPWH Secretary Florante Soriquez, MIAA General Manager Alfonso Cusi and Executive Secretary Eduardo Ermita met yesterday at the Palace to discuss the timetable for full commercial operations at NAIA-3.

Solicitor General Alfredo Benipayo earlier estimated that as much as $15 million would be needed for the repair and construction of NAIA-3 facilities to conform to international aviation safety standards.

The President issued her directives to the heads of these government agencies after the government finally took over the NAIA-3 facilities following the issuance of a writ of possession by a Pasay City regional trial court last Tuesday.

Ermita said the repair and completion of the NAIA-3 facilities would be undertaken while Benipayo is addressing the legal issues concerning just compensation for its original contractors.

"There is no question that we will provide just and fair compensation to the Philippine International Air Terminals Co. (Piatco)," Ermita said. "In fact, this is what the government intends to do. All parties to this case will be guided by the court’s ruling on this matter."

Mendoza also gave assurances that the Philippine government will compensate Piatco, which built the $650-million facility. He disclosed that a court-appointed commission with three members will be formed to determine the real value of the airport terminal.

He brushed aside charges by Fraport, a German firm which owns 30 percent of Piatco, that the government broke the law in expropriating the terminal.

Mendoza said his department "recognizes the right of Piatco for just compensation and will do so after a competent court has determined its real market value".

Piatco, however, expressed fears that the government might try to vandalize NAIA-3 and purposely damage the facilities inside the airport "to manipulate the compensation that would be eventually adjudged to them."

Liwayway Vinzons-Chato, one of Piatco’s lawyers, said in a statement yesterday that while the government is fully aware that the construction price for the terminal alone is more than $300 million, it misrepresented in its expropriation complaint that the value of NAIA-3 was only $53 million, "which the court accepted as true without even the slightest proof."

"The government acted with utmost bad faith in forcibly taking over NAIA-3," Vinzons-Chato said.

She added that while the proceedings before the International Chamber of Commerce (ICC) arbitration tribunal are in progress and amicable negotiations between Piatco and the government are still being pursued, "the government surreptitiously took over NAIA-3 through the use of force, given a semblance of legitimacy by a court writ of possession issued within minutes of the filing of the government’s expropriation complaint."

As of Dec. 17, Piatco said the government was still personally assuring them that the lines of communication and the possibility of an amicable settlement between them remained open.

Vinzons-Chato said the incident "is a dangerous harbinger of the future of private initiative and investments in the Philippines."

Mendoza, however, stressed that the government’s takeover of the facility was legal since it went through due legal process. A court order also granted the DOTC the right to possess the controversial terminal in order to uphold and protect public interest.

The DOTC then had to strike a balance between upholding the interest of investors and protecting national interest, he said.

As this developed, Senate Minority Leader Aquilino Pimentel Jr. warned the government that investors’ trust in build-operate-transfer (BOT) projects will be impaired if the government can’t resolve payment of NAIA-3.

"It is good to make the NAIA-3 operational after lying idle for about two years now. But investors must be paid what is due them. Otherwise, the whole BOT program of the government will be rendered unreliable," he said.

Pimentel also expressed the view that despite the government’s takeover of NAIA-3, the arbitration proceedings in two international bodies with respect to the dispute over the airport facility will go on because that is beyond the jurisdiction of Philippine Courts.

One sector which will benefit most from the opening of the new terminal is tourism.

"With an average 14.2 percent increase in the number of tourists projected until 2010, the country’s present airport capacity will not be able to adequately accommodate travelers and tourists by 2007," Tourism Secretary Joseph Ace Durano said.

The DOT admitted that the country is lagging behind other Asian countries in luring foreign tourists. — With reports from Marichu Villanueva, Sandy Araneta, Jose Rodel Clapano, Mayen Jaymalin, AFP

absent-minded

December 24th, 2004, 04:07 AM

Liwayway Vinzons-Chato, one of Piatco’s lawyers, said in a statement yesterday that while the government is fully aware that the construction price for the terminal alone is more than $300 million, it misrepresented in its expropriation complaint that the value of NAIA-3 was only $53 million, "which the court accepted as true without even the slightest proof."

what is the heck is he talking about??? the $53M was the downpayment... PIATCO is the one that is twisting the truth and the facts here. the government should never have to pay $900M++ to PIATCO and Fraport for a contract worth no more than $323M (they didn't even build the $18M tunnel!! so that makes it $305M) just because they made these mulitmillion dollar bogus and illegal dealings thinking they'd bagged the contract to operate the terminal...!

Don’t analyze or try to make sense of the beloved Christmas story – believe!
BY THE WAY by Max V. Soliven | The Philippine Star | Dec. 24, 2004

....

The President was right to take over, after months of hesitation, the NAIA-3 Terminal – and damn the torpedoes. Of course Fraport is protesting, and PIATCO propaganda machine has gone into high gear to condemn the move. "It’s illegal!" thousands of lawyers are already shouting. Mrs. President, just do it!

Fraport, as everybody in Germany knows, is already under investigation by its own government – its records were seized in government raids weeks ago.

Only by resolutely moving on this matter can the Chief Executive and her Government get things going – and, in time, earn the money to complete the stalled project and REPAY all concerned, including the Japanese contractor. What we’ve had, all these past months, has been gridlock, humiliation, and a lot of jerks twisting the law to defy the Government.

Alexander the Great, when faced with the age-old riddle of the simply drew his sword and cut the knot. (I didn’t even see the movie yet, but sanamagan everybody knows who reads a bit of history that’s exactly what Alexander did. What he did with his love life, and whether he was poisoned, are other matters which remain in the realm of conjecture.)

GMA cut the PIATCO knot. Now comes the hard part: getting that airport open and operating. I talked with Executive Secretary Ed Ermita and he said their estimate is that it would be fully operative within six months. Just do it.

It’s time we got a real airport terminal, not the junk one which is NAIA-1. Sus, it’s a wonder Ninoy Aquino didn’t rise from his grave to demand that his name be stricken off that terminal building. At least, though, I must report, the toilets in the arrival area at NAIA-1, after years of delay, have been remodeled and now, state-of-the-art toilets – from pissoirs to automatic flush, and automatic faucets, and dryers, and salamabit, even toilet paper! (Will miracles never cease) have been installed.

This transformation reputedly cost P4.8 million – money well-sent, if you ask me, to finally prevent every other country from heaping scorn on us, and foreign tourists and disappointed would-be investors being turned off by their first encounter with our Fourth World country where one couldn’t even take a decent pee upon arrival from a long flight. (If I remarked that we’re beginning to look like an African country, the Africans I’m sure would be insulted).

Believe me, you can tell a great deal about a nation by its airport toilets.

For instance, China spent billions of dollars fixing up the airport toilets in its main cities, from Beijing to Shanghai to Xian, before it became an international tourist power. I used to fly around China in the old days – the mid-1960s. The airplanes were junk Ilyushins and Tupolevs without seat-belts, and the airports had stinking toilets. You could even see through holes in walls of the woman’s toilets without even trying to peek, to great mutual embarrassment. Now look at them in the People’s Republic, at least in the "tourist belt". Spanking clean, sweet-smelling – and completely streamlined. Our NAIA? The Terminal toilets were hardly beyond the primitive Antipolo system – at least until a couple of weeks ago. Now, by golly, at very long last: a decent toilet!

I learned this not from press release but from first-person inspection. I went to NAIA-1 last Wednesday night to meet my wife, who was arriving from a speaking engagement in Hanoi (Vietnam), via Lufthansa on connection from Bangkok. To my amazement, before the aircraft landed, the chief inspector on duty led me to the toilet – cheerfully remarking that it’s only for visitors and tourist, "we airport personnel aren’t allowed to use it!"

Lo and behold – a gleaming, modern toilet – but a small one. We’re light years away from Hongkong, Singapore, Pudong-Shanghai, even Kuala Lumpur! However, hopefully, it’s a start.

....
-----------------------------------------------------------------------------------
a little O/T, but yeah... they've redone some of the washrooms at T1. finally... hahaha! it sounds so funny now - with the way he writes about it and all ("Lo and behold!" hahahaha!!!) but I guess that's how much of shame the toilets at NAIA-1 really used to be.

ryanr

December 24th, 2004, 06:51 AM

Interesting...I really think it is PIATCO and Fraport that is to blame. Fraport also has scandals in other parts of the world.

SkylineTurbo

December 26th, 2004, 12:48 PM

Fraport is very corrupt.

Lightspeed

December 26th, 2004, 02:29 PM

They finally did something about it!

It's about time the Philippines gets a truly world-class airport.

Open NAIA-3 Soon!

jbkayaker12

December 26th, 2004, 09:21 PM

Yes, Fraport has scandals all over the world.

Jon

stephencua

December 28th, 2004, 03:27 AM

as long as the airport opens in 6 months we can talk about settling debts and determining who's guilty later..

kudos to GMA.. the decision has really been long overdue.... she's finally showing some political backbone..

:applause: :cheers1: :applause:

anyone could read more news on the inq7.net website.. finally we could have a world class airport!!!

apiong

December 28th, 2004, 06:28 PM

NAIA Terminal 3 seems to be on sight in 6 months time, but according here: http://www.dpwh.gov.ph/Doing_Business/CIVIL_WORKS/advertisement.asp?es=central
under this document: http://www.dpwh.gov.ph/PDF/cw/ad/04/dec/DPWH_Main_(12-13)_11-16.pdf
the major road component of the NAIA expressway linking NAIA3 to the skyway won't be finished in 12 months time...

Name of Project/Location : NAIA Expressway and Its Related Projects, Phase I Package IV-A – Sales Down Ramp/Pasay City Estimated Construction Cost : P 510.00 Million Proposed Contract Duration : Twelve (12) months

kiretoce

December 28th, 2004, 10:30 PM

Compensate Piatco fairly, say investors

European investors doing business in the country on Tuesday said the government must ensure that “fair and just compensation” must be given to the major shareholders of the mothballed Ninoy Aquino International Airport Terminal 3.

Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines (ECCP), said the international business community is closely watching the developments on the expropriation proceedings being undertaken by the government.

“Investors around the world will watch the next steps taken by all parties concerned with great interest,” Schumacher stressed.

The government immediately made an initial downpayment of P3 billion after it filed an expropriation complaint before the Pasay City regional trial court late last week. The downpayment was made while the courts have yet to decide on the “fair and just compensation” to be paid to the major shareholders of NAIA 3.

European investors were surprised about the government’s decision to take over the mothballed facility after negotiations apparently failed.

“The act of expropriation is always a risky thing to do for any government. But there are times when it is clearly in the best national interest to do so—as long as fair and just compensation is paid,” Schumacher stressed.

He pointed out that European investors thought that all parties concerned were very close to reaching an agreement on a four to five step solution process.

“Now that expropriation has taken place, it is essential that the government does, as it has promised, abide by whatever decision is finally reached by the ongoing arbitration cases. This action of government is a partial but possibly practical solution to the problem,” Schumacher added.

Earlier, Trade Secretary Cesar Purisima announced that the Manila International Airport Authority was empowered by its charter to expropriate real or personal property. The expropriation shall be done in accordance with Rule 67 of the Rules of Court.

Purisima, a member of the negotiating team, said the expropriation process was made to advance the opening of the facility at the same time break the impasse. Other members of the team are Transport Secretary Leandro Mendoza, Executive Secretary Eduardo Ermita, and Presidential Legal Counsel Merceditas Gutierrez.

Purisima said the takeover would speed up the opening of NAIA 3 while the issue of the ownership is still under international arbitration before the International Center for the Settlement of Investment Disputes under the World Bank in Washington and International Chamber of Commerce in Singapore.

It would be recalled that the contract of Piatco to construct NAIA Terminal 3 was declared null and void ab initio by the Supreme Court in May of 2003. Piatco filed a recovery case amounting to $425 million before ICSID in Washington and a recovery case worth $500 million before the ICC in Singapore. The government filed a counterclaim ($900 million) before the ICC in Singapore.

The NAIA Terminal 3 started in 1994 as a build-operate-transfer (BOT) project by Asian Emerging Dragon Corporation (AEDC). In July 1997, the Concession Agreement was awarded to the Piatco consortium composed of Pair Cargo, Philippine Air and Ground Services Inc. and Fraport AG of Germany after AEDC failed to match the challenge.

Fraport, that was forced to completely write-down its financial investments in the NAIA Terminal 3 project owing to its dispute with its local partner—the Cheng family. The German firm holds a 30 percent interest in Piatco.

At the same time, two proadministration lawmakers pushed for a revenue-sharing scheme between the government and Piatco to settle their their dispute.

The proposal came from Lakas Rep. Monico Puentevella of Bacolod City, who chairs the House Committee on Transportation. Lakas Rep. Isidro Real of Zamboanga del Sur backed Puentevella's proposal, saying it is the most practical option since it entails no additional burden to the government.

Puentevella said that the government and Piatco can hammer out a compromise agreement, wherein both parties can explore the possibility of entering into a revenue-sharing scheme, with which the government would no longer borrow money to pay Piatco.

He said that in his capacity as head of the transportation committee, he is willing to volunteer to represent Congress in the negotiating panel to seek a win-win solution to the standoff.

“It is better for the both government and Piatco to immediately settle the issue to prevent more losses. The operation of NAIA 3 is crucial to national development, to investors and tourists confidence, and economic growth as well,” Puentevella said.

He said the adoption of a revenue-sharing scheme will expedite the new terminal’s much-awaited opening, without the need for the government to borrow money for payment to Piatco, builder of the sprawling new airport facility.

“The country is already saddled with debts, it can no longer afford to absorb more loans at this point. Revenue-sharing is a very practical scheme,” Puentevella said.

For his part, Real, vice chairman of the House Committee on Appropriations, echoed Puentevella’s views, saying that entering into a compromise settlement with Piatco is the most practical option for the government.

“It is a big waste if the operation of NAIA 3 will remain suspended because of the deadlock in the negotiations between the government and Piatco,” Real said.

The government has decided to takeover the facility, and offered to pay Piatco a downpayment of P3 billion, which the latter rejected.

“If the situation remains, there will never be a solution to the standoff. Perhaps, both parties should consider joint operation or revenue-sharing to have a win-win solution. This will also provide the balance between protecting national interest and upholding the interest of investors,” Real said.

Solblanc

December 29th, 2004, 06:16 PM

Malacañang assures PIATCO of ‘just’ compensation

ABS-CBN News http://www.abs-cbnnews.com/NewsStory.aspx?section=NATIONAL&oid=65816

Malacañang on Wednesday assured that the Ninoy Aquino International Airport Terminal 3 builder, Philippine International Air Terminal Corp. (PIATCO), will be given just compensation as it sought to allay concerns of the foreign business community on the government takeover of the new terminal.

Press Secretary Ignacio Bunye was responding to a statement of the European Chamber of Commerce of the Philippines (ECCP) that government must give “fair and just compensation” to PIATCO, apparently to keep foreign investors interested in doing business in the Philippines.

Bunye said, “Law and justice have been upheld in the takeover of the airport, and our judicial system assures a clear process of determining just compensation under the standards of fairness and transparency.”

He added that the government serves “the sovereign interest of the Filipino people alongside the demands of legitimate commercial interests and there is no need for undue apprehension in this regard.”

ECCP executive vice president Henry Schumacher had also said the international business community is keeping a close watch over the expropriation proceedings with regards to NAIA 3.

Government had taken over the NAIA 3 under a writ of possession issued by the Pasay Regional Trial Court, and deposited in escrow an initial P3 billion after it filed an expropriation complaint.

Trade Secretary Cesar Purisima had said the move was intended to speed up the opening of the facility and, at the same time, break the impasse between government and PIATCO.

President Arroyo had ordered officials to do all the necessary repairs and rehabilitation work on NAIA 3 so that it could be opened in six months.

To concerns that the government had overstepped its bounds in expropriating NAIA 3, Sen. Joker Arroyo has this to say: “The President’s decision to expropriate Terminal 3 is long overdue but appropriate. It blunts the unwarranted criticisms that the Supreme Court unduly interferes in contracts entered into by the government with the private sector.

“That the Terminal 3 contract was fraudulent and therefore null and void was so declared by the Senate through the blue-ribbon committee and the Office of the President. Thus, it has the concurrence of the three branches of the government.”

He added that, among other points, NAIA 3 was to have been built by the six taipans—Al Yuchengco, John Gokongwei, Henry Sy, George Ty, Lucio Tan and Andrew Gotianun—who formed the Asian Emerging Dragon Corp. for the purpose, but “surprise of surprises, the conglomerate of the six taipans was outbidded by an undercapitalized consortium headed by Henry Go, Cheng Yong and others.”

Arroyo said that although Go, Yong and company agreed to the original bid documents, they succeeded in amending the original contract five times, “so much so that the final contract as implemented is entirely different from the contract as originally signed.”

“In a word, PIATCO signed the original contract in bad faith, knowing that they could not implement it, but signed it nevertheless just so they could bag the contract.”

This led PIATCO to bring in Fraport AG of Germany that invested roughly 60 percent against 16 percent of the Cheng Yongs. “This reverse structure has raised accusations of dummyism against both Fraport and the Cheng Yongs.” M. Gonzalez, L. Lectura

bobreyes

December 30th, 2004, 03:59 AM

finally! the terminal III will be opened by 2005!

Solblanc

December 30th, 2004, 05:28 AM

PAL remains reluctant to move to Naia 3
Posted: 2:31 AM | Dec. 30, 2004

Clarissa S. Batino
Inquirer News Service

http://money.inq7.net/topstories/view_topstories.php?yyyy=2004&mon=12&dd=30&file=3

PHILIPPINE Airlines on Wednesday said it was willing to move its operations to the Ninoy Aquino International Airport Terminal 3 if it could maintain integrated operations of its overseas and domestic flights for passenger and cargo.

The flag carrier said the government should also keep aviation fees unchanged should the airline decide to transfer to the new terminal.

PAL president Jaime Bautista said that if the airline controlled by Chinese-Filipino tycoon Lucio Tan moves to Naia 3, the company would have to shoulder the added costs of hiring more people and buying more aircraft to maximize operations.

The Arroyo administration said it could open Naia 3 for commercial operations within the first half of 2005 after taking over the facility last week amid unresolved arbitration cases against the private group that built the terminal.

The new terminal would need the business volume of the country's biggest airline to be viable. But it may also have to raise aviation fees to recover costs.

PAL operates 32 aircraft for its domestic and international passenger and cargo routes. It has been using the relatively new Naia 2 exclusively to service passengers while all other carriers use the Naia 1, the oldest terminal facility.

PAL's cargo operations are located near Naia 1. While Naia 3 is designed to handle 28 aircraft at any given time and 13 million passengers a year, it has no cargo terminal and building one would take at least 18 months.

"We enjoy operating under one roof but we are willing to move to Naia 3 if we can still integrate domestic and international (operations), including the cargo. They must also charge us the same rate for everything, all the fees like parking, take off, landing, etc," Bautista said.

The PAL chief said if these conditions were met, it would also be advantageous for the flag carrier to use a newer and bigger aviation terminal.

He said moving to Naia 3 would require PAL to expand its fleet by two to three aircraft. The airline, according to Bautista, would also need more staff to manage a bigger location.

At the Naia 2, he said it was easier to move people and cargo to connecting flights. Cargo accounts for 12 to 15 percent of PAL's revenue.

"We need a cargo terminal that is very near the passenger terminal and currently Naia 3 has no cargo terminal. A substantial portion of revenue comes from the belly of the plane that carries cargo," Bautista explained.

He said cargo operations complement an airline's passenger service. For other airlines, cargo accounts for half of their total sales. For PAL, 70 percent of revenue comes from overseas flights and the remaining 30 percent from domestic trips.

Bautista said the government would not be losing money if PAL decides to stay in Naia 2. "They will still get the same revenue that they are getting now from Naia 2."

=====================

pal is such a spoiled brat, I swear.

jbkayaker12

December 30th, 2004, 11:46 AM

Perhaps if Lucio Tan pays the 25 billion in back taxes that he owes the government maybe the Philippine government may listen to their demands.

I still wont fly Philippine Airlines and Id rather spend my money with Cebu Pacific and SEAirlines.

kiretoce

December 30th, 2004, 06:39 PM

Analysis : Terminal 3 expropriation just a start
By Amando Doronila, Inquirer News Service

THE ADMINISTRATION of President Macapagal-Arroyo begins the new year with a key economic-related decision that raises false expectations, with the promise to open by mid-year the still uncompleted Terminal 3 of the Ninoy Aquino International Airport. This target opening date for the terminal, which has remained unused for more than two years, is unrealistic and glosses over the thorny issues that have to be overcome before it can be operational.

The government may have acted decisively when it moved last Dec. 21 to expropriate the terminal, but expropriation is only the beginning of clearing the path to resolve two important issues: first, the "fair and just" compensation to be given to Piatco and its foreign partner, Fraport, for building the terminal; and, second, ensuring that the terminal's facilities are functional and safe, befitting a "world-class airport." The administration's announcement seems to convey the impression that the exercise by the government of the power of eminent domain to take over a facility built on public property "in the public interest" works like magic that banishes hard issues. The government is putting its credibility on the line by setting an unrealistic deadline. If not met, this could blow up in the government's face.

There are at least two important reasons the government wants to show results early in the new year. It is facing the specter of a disastrous plunge in its public opinion rating (negative 5 percent at the end of the year) and is seeking to reverse it before it sinks the administration into a permanent quicksand for the entire year. The other urgent reason is that it faces a possible credit rating downgrading by international rating organizations. If the administration fails to open the new terminal according to its target date, it is going to damage extensively its credibility in getting things done, and a disappointment is certain to sink her rating even more deeply.

Additionally, the President starts the new year with an impression of action by calling Congress to a special session for a few days to pass a couple more of the eight urgent tax measures as a demonstration of the political will of the administration to stem the fiscal crisis in order to avert a credit downgrading.

With the decision to expropriate Terminal 3, following the breakdown of negotiations with Piatco and Fraport, the administration wrenched the dispute from the hands of international arbitration bodies. Fraport has brought the dispute to the World Bank's International Center for Settlement of Investment Disputes in Washington, D.C., while Piatco has filed a recovery case before the International Court of Arbitration of the International Chamber of Commerce in Singapore. Fraport is demanding $465 million in recovery costs while Piatco has filed a claim for $500 million with the ICC in Singapore. The government finds these claims exorbitant and "unreasonable."

After stepping out from international arbitration, the government has asked a Philippine court to appoint a three-member commission to determine the "fair and just" compensation for Piatco and Fraport. While the right of Piatco and Fraport to fair compensation was conceded by the government, the vexatious issue is the amount. Determination of the amount will be a time-consuming process that is unlikely to be completed within six months.

Although there is strong pressure and a broad consensus for the immediate opening of the terminal, there is equally strong pressure, both domestic and international (from the investment community), to expedite decision on the compensation. Although business groups expressed their approval of expropriation, they have insisted on just compensation. The Makati Business Club said, "We note with approval that the expropriation...comes with the assurance from the government that will pay fair and just compensation for the facility as ordered by the Supreme Court." The MBC noted that the results of its business opinion survey released two weeks ago showed that a large number of Filipino and foreign businessmen "wanted the government to address this infrastructure problem by next year." A business conference last November identified Terminal 3 as a key infrastructure project and said that its opening would help stimulate renewed investor interest in the Philippines.

The Manila International Airport Authority this week began a survey of the terminal to determine whether repairs are needed to get it operational, since there have been reports that its facilities have deteriorated in the last two years. The expropriation order by the court authorized entry by government authorities into the terminal, from which they had been barred by Piatco, and enabled them to conduct an inventory and inspection of its facilities.

To counter Piatco's and Fraport's claims, the government has made counterclaims against the consortium, amounting to $907 million which will have to be adjudicated by the three-member judicial commission.

Up to now, the terminal does not even have a cargo terminal and it will take more than six months to build it. The cargo terminals are located at Terminals 1 and 2. The plan was to build a tunnel to connect Terminal 3 to the cargo terminal. This tunnel was not built because it would have cost an additional $18 million.

Japanese and Filipino engineers will conduct the survey of the facilities. The Takenaka Corp., which built Terminal 3, has submitted a report saying that a number of facilities were below specifications.

Solblanc

January 1st, 2005, 05:45 AM

MIAA raising P700M for Naia 3 cargo terminal
Posted: 2:13 AM | Jan. 01, 2005

Clarissa S. Batino
Inquirer News Service

THE MANILA International Airport Authority is raising at least P700 million to put up an access road to and a cargo terminal within the Ninoy Aquino International Airport Terminal 3.

MIAA general manager Alfonso Cusi said the facilities, which were necessary to convince more airlines to move to Naia 3, would have to be in place by the first quarter of 2006.

The Arroyo administration said it would open Naia 3 for commercial operations within the first half of 2005. State-run MIAA operates the Naia international and domestic terminals.

Cusi said the agency would use its own funds to build a P200-million access road through the Nayong Pilipino complex. This would facilitate the movement of passengers and cargo from the existing aviation terminals. It should be completed by the middle of 2005.

The cargo terminal component was estimated to cost P500 million. He said MIAA intended to raise funds for this through bank borrowings or by issuing bonds.

Another option, he said, was to tap the private sector to build the cargo terminal under the build-operate-transfer scheme.

"We are starting to make plans to build a modern cargo terminal within Naia 3 to accommodate more volume. We are still crunching the numbers but offhand, it may costs about P500 million," said the MIAA chief in an interview.

Philippine Airlines said the other day that a cargo terminal within Naia 3 might convince it to move all its operations from Naia 2. The flag carrier said the government should also keep aviation fees unchanged.

The new terminal would need the volume of the country's biggest airline to be viable. But it may also raise its fees to recover costs.

PAL operates 32 aircraft for its domestic and international passenger and cargo routes. It has been using the relatively new Naia 2 exclusively to service passengers while all other carriers utilize Naia 1 or the oldest terminal.

PAL's cargo operations is located near Naia 1. While Naia 3 is designed to handle 28 aircraft at any given time and 13 million passengers a year, it has no cargo terminal and building one would take at least 18 months.

"While the cargo terminal is under construction, the airlines could use the access road to move cargo and passengers from the old terminals to Naia 3. They can still use the old cargo warehouse for the meantime," said Cusi.

The airport agency has been evaluating plans to raise the fees and charges following a finance department order to adjust the rates.

Terminal fees may go up to about P800 for overseas trips and to P200 for domestic flights. On top of that, the MIAA is studying proposals to impose a security fee and to start charging anew for the use of trolleys.

kiretoce

January 3rd, 2005, 08:27 PM

MIAA offers part of NAIA for ecozone
By Bernie Cahiles-Magkilat

The Manila International Airport Authority (MIAA) has proposed to transform an undeveloped portion of Ninoy Aquino International Airport into an economic zone to address the logistical problem of exporters.

A source said this was prompted by a desire of DHL Worldwide Express, the world’s leading international air express company, which is using the airport complex as its international gateway.

It requires a minimum of 27 hectare property to be registered as an ecozone under the Philippine Economic Zone Authority (PEZA) but DHL’s property, refurbished last year for 15 million, only covers nearly a hectare.

The DHL property is not also contiguous with the Macroasia lot, which owned the over 60-hectare Lufthansa Technik ecozone. The Lufthansa ecozone is the closest ecozone to the international airport.

It is being figured out how to connect DHL lot with Macroasia lot so as not to waste recent investment of DHL with its logistics handling facility. Thus, the proposal is to turn the area as a logistics zone. By putting an ecozone near the airport, it would mean reduced transport cost for companies. Already, the logistics sector has expressed desire to locate its stone setting operations in an ecozone near the airport.

The MIAA property is still undeveloped but is believed to be a flat grade. Members of the Philippine Industrial Estates Association can be tasked to develop the land to relieve the government-owned MIAA of the development cost.

At present, DHL’s NAIA gateway serves as the exit and entry point for all shipments into or out of the Philippines. It also handles import and export operations for DHL Philippines including total customs clearance facility.

DHL’s facility is the focal point of operations in sending and receiving documents or packages to and from over 220 countries. The facility is equipped with the latest technology that allows DHL to provide faster and more accurate service to its customers in the country and all over the globe.

DHL accounts for at least 39 percent market share in the express business in the country. DHL Worldwide has been aggressively expanding its operations in the country in the last two years due to increased business activity in the Philippines, which it counts as an important components in its Asia-Pacific presence.

apiong

January 4th, 2005, 01:54 PM

NAIA3 Court Ruling on downpayment (http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2005&mon=01&dd=04&file=10)

Posted: 7:33 PM | Jan. 04, 2005

Agence France-Presse

A LOWER court has ordered the government to pay a 62 million-dollar downpayment to the builders of a Manila airport passenger terminal that was expropriated last month, officials said Tuesday.

Following the order of the Pasay Regional Trial Court (RTC) here, Justice Secretary Raul Gonzales said the government would negotiate with Philippine International Air Terminals Co. (PIATCo) consortium, which includes Fraport AG of Germany.

Judge Henrick Gingoyon of Pasay RTC Branch 117 ruled that the amount of 62,343,175 dollars was partial payment for the just compensation due PIATCo. Gingoyon allowed the government to maintain, preserve and safeguard NAIA 3 and "perform acts or activities in preparation for their direct operation" of the terminal until the expropriation proceedings was completed.

The government could not, however, perform "acts of ownership" such as awarding concessions or leasing any part of the terminal to other parties.

Fraport is seeking compensation of 465 million dollars for the facility, which President Gloria Macapagal-Arroyo wants to operate by June.

Consortium spokesman Liwayway Chato welcomed the court ruling, which she described as recognition of the "rule of law" in the controversy.

She also warned that the Fraport group would demand the payment of full "replacement cost" before the government takes over the facility.

The terminal has been in mothballs since 2003 when Arroyo revoked the consortium's "build-operate-transfer" contract with the government on the grounds that certain terms were illegally renegotiated by her deposed predecessor Joseph Estrada in 1998.

The government asked the lower court last month to allow it to operate the facility, offering a three billion-peso (53.57 million-dollar) downpayment to the consortium.

The government asked the lower court last month to allow it to operate the facility, offering a three billion-peso (53.57 million-dollar) downpayment to the consortium.

The consortium accused the government of breaking the law in expropriating the terminal and dismissed the downpayment as insufficient.

The case is under arbitration before the World Bank's International Center for Settlement of Investment Disputes.

Chato said that if the two sides cannot agree on compensation, the Philippine court would have to determine the amount within 60 days.

Ruth Navarra, Inquirer News Service, Originally posted at 5:34 PM

Kiel

January 4th, 2005, 05:50 PM

Order halting NAIA 3 takeover hailed

In a statement, Chato cited Section 4 of Republic Act (RA) 8974, which was also cited by the judge in his order, which stated that, "Upon filing of the complaint (for expropriation), the implementing agency shall immediately pay the owner of the property the amount equivalent to the sum of one hundred percent of the value of the property based on the current zonal valuation of the Bureau of Internal Revenue, and the value of the improvements and or structures thereon."

The same section continued, "In the event the owner of the property contests the implementing agency’s proffered value, the court shall determine the just compensation to be paid the owner within 60 days from the date of filing of the expropriation case. When the decision of the court becomes final and executory, the implementing agency shall pay the owner the difference between the amount already paid and the just compensation as determined by the court."

Chato said that since the Philippine International Air Terminals Co. (PIATCO), which is the owner of the NAIA Terminal 3 facility, has not agreed to the compensation offered by government, and no just compensation has yet been determined by the court nor paid by the government, the latter could not exercise rights of ownership, including taking possession, over the facility.

The court order also admonished the government that it is "prohibited from performing acts of ownership like awarding concessions or leasing any part of NAIA IPT 3 to other parties," Chato said.

SolGen NAIA 3 statement

Solicitor General Alfredo Benipayo on the Ninoy Aquino International Airport (NAIA) 3 court order issued yesterday:

"The Office of the Solicitor General will file a motion for reconsideration of the order issued by the judge especially since we were not notified of any motion, which resulted into that order."

"It is not only PIATCO that is claiming compensation for that facility. There are two international arbitration proceedings. One was initiated by PIATCO which is claiming US$565 million for the facility while Fraport who claims to be a major investor through loans and shares is claiming US$425 M as its investment in the terminal."

There are two other shareholders as well. Takenaka, the main contractor of PIATCO who actually built the terminal also remains unpaid. Takenaka is claiming about US$100 million and is a preferred line holder."

"If this amount, although merely deposit, is immediately released to PIATCO, the other claimants will be prejudiced. At the very least, Fraport and the other shareholders, as well as Takenaka, ought to have been notified of any order of distribution of that deposit."

Deal with caution — Enrile

Senator Juan Ponce Enrile said yesterday the government cannot exercise "acts of ownership" over the Ninoy Aquino International Airport Terminal 3 (NAIA 3) without full payment of just compensation as mandated by the Constitution.

At the same time, he warned the government to observe "caution" in dealing with the NAIA 3 issue because of complications with other foreign governments whose citizens have invested money in the $565-million project.

Enrile said that a mere deposit to answer for full compensation would not entitle the government to exercise acts of ownership such as operating the airport, as it would mean "using" the facility for its own purposes.

A nationally distinguished lawyer, Enrile declared that the Constitution protects the properties of citizens against expropriation without payment of just compensation.

"A mere deposit to answer for full compensation later will not suffice," he stressed. "There must be due process and complete payment of just compensation for the expropriation to be legal."

Gov’t should pay consortium

Senator Alfredo Lim stressed yesterday that the government should first pay in full the consortium that built the Ninoy Aquino International Airport (NAIA) 3 airport terminal before it can lawfully take control of the facility.

Lim explained that an order issued by Branch 117 of the Pasay City Regional Trial Court, dated January 4, 2005, made it clear that full payment should first be made by government and accepted by NAIA 3 builder PIATCO before the government can take control of the terminal.

Thus, Lim said, the government takeover of NAIA 3 a few weeks ago was "premature."

--- .

Crazy4Airplanes

January 4th, 2005, 07:14 PM

My God, at the rate they are going, we would be lucky if they would be able to make NAIA 3 operational not by June 2005 but by June 2006 . :bash: :bash: :bash: :bash: :bash: :bash:

mysaong03

January 4th, 2005, 11:13 PM

no comment.

Thunderflip

January 4th, 2005, 11:40 PM

Bastsos! Akala ko pa naman makikita at magagamit ko ang airport pag uwi ko diyan sa atin.

tyronne

January 4th, 2005, 11:45 PM

i remain optimistic, let's see what happens...

stephencua

January 5th, 2005, 02:41 AM

tyronne i agree with u.. i will remain optimistic on the issue..

i believe that the government will do everything legal in its power to open the airport for the benefit of all Filipinos..

tyronne

January 5th, 2005, 03:06 AM

yes... all the gov't should do is to be cautious in all its undertakings. i wouldn't care that much if it means opening the naia 3 at a date later than the 6-month period instructed by the president as long as there are no legal problems (yet again).

kiretoce

January 5th, 2005, 04:34 AM

Hay naku! Puro urong-sulong lang ang nangyayari! Naglalaway na nga ako dahil sabik na sabik na ako makita ang T3 na operational! :drool:

mhe-ann

January 5th, 2005, 05:04 AM

:lol: easy lan po. pasasaan ba at magiging operational na rin yan. :)

tyronne

January 5th, 2005, 05:29 AM

ANC news just featured NAIA3 a while ago and it really looks nice inside and massive :eek: well... compared to the other 2. i like the baggage carousels, there are many of them compared to naia2. there's so much space, space and more space. beautiful :D

jbkayaker12

January 5th, 2005, 07:19 AM

The government will try very hard to open T3 facility this year and one of the reason is the upcoming
SEA Games which will commence latter part of the year. Not only athletes and their entourage but also foreign media will be arriving for the said event. It is always nice to have a first good impression and the airport is the first thing a foreigner sees upon arriving.

Pearl of the Orient Seas - The Philippines (http://community.webshots.com/user/jbkayaker12)

Jon

tyronne

January 5th, 2005, 07:24 AM

^^^good point. hopefully it does open before the SEA games.

stephencua

January 5th, 2005, 08:33 AM

point well taken jbkayaker12..

as long as the airport is opened before the SEAG is fine.. sana lng mas maaga para pag pmnta ko ng HK makadaan na ko dun.. hehehe.. and tyronne again i agree with you.. there is a heckuva lot of space in that airport..

Crazy4Airplanes

January 5th, 2005, 07:27 PM

Gov’t appeals Piatco ruling
By Aurea Calica
The Philippine Star 01/06/2005

The Office of the Solicitor General asked the Pasay City regional trial court (RTC) yesterday to reconsider its ruling ordering the government to pay an initial $62 million as "just compensation" to the Philippine International Air Terminals Co. (Piatco), builder of the Ninoy Aquino International Airport Terminal 3 (NAIA-3).

The seven-page motion for reconsideration filed by Solicitor General Alfredo Benipayo said the court order was illegal since it effectively prevented the government from operating NAIA-3 while at the same time compelling it to pay $62 million to Piatco as initial compensation.

Benipayo said the ruling violated "essential procedural steps in expropriation proceedings."

The ruling, handed down last Tuesday by Pasay City RTC Branch 117 Judge Henrick Gingoyon, allowed the government to maintain, preserve and safeguard the facilities of NAIA-3, and "perform acts or activities in preparation for their direct operation."

However, the court also ruled that until the expropriation proceedings are completed, the government is barred from exercising "acts of ownership," such as awarding concessions or leasing any part of the terminal to other parties.

Benipayo said the writ of possession issued by the Pasay court entitled the government to inspect and operate NAIA-3 in order to determine the just compensation through expropriation proceedings.

He said the court order prohibiting the government from exercising acts of ownership over NAIA-3 violated Republic Act 8975, which prohibits lower courts from issuing injunctions against government infrastructure projects.

"More fundamentally, the injunction was issued without notice and prior hearing, in total disregard of due process. To prevent (government) from exercis(ing) the rights of a beneficial owner of the property is to render nugatory the very purpose for which the writ of possession was issued," Benipayo said.

He described the lower court’s order as "unilateral," since it "was surprising and irregular being hastily done."

Benipayo said the Pasay court made an error in saying that the government’s deposit of $62,343,175.77 was made the basis for the issuance of the writ of possession.

He said only P3,002,125,000.00 or approximately $53,609,375.00 was deposited at the Land Bank of the Philippines which represented the assessed value of the property as was required under the Rules of Court.

Benipayo explained the Landbank’s certification of the Manila International Airport Authority (MIAA)’s deposit of the amount was made notice to the court as guarantee that the government has the ability to pay in case of a final decision of the court.

"The deposit is subject to final judgment and orders of the court. What is made available to the court’s disposition for purposes of the provisional deposit for the writ of possession is what is stated in the complaint, that is only P3,002,125,000.00," Benipayo said.

Benipayo stressed the $62 million award is not the assessed value of NAIA-3 if the Rules of Court and Rules of Civil Procedure are to be applied for taxation purposes.

"To reiterate, the amount... represents a guarantee fund for the final judgment of the court and not solely for the amount of provisional deposit," Benipayo said.

Moreover, despite the allegations in the complaint that the deposit was made in Philippine currency, Benipayo pointed out the court ordered "the excessive payment in US dollars."

In his appeal, Benipayo argued that the provision of RA 8974 cannot apply to the case since this would only be applicable to acquisition of "real property needed as a right-of-way, site or location for any national government infrastructure project," not an airport.

Benipayo told the court that there are other claimants to contend with.

He said that not only Piatco is claiming compensation but also its German partner, Fraport AG; Takeneka, the Japanese contractor; and other members of the consortium.

As an unpaid builder, Benipayo said Takeneka has preference.

"In fairness to Takeneka, Fraport and other parties who have claims over the just compensation for the terminal, they ought to have been heard before the subject deposit is ordered released all for Piatco," he said.

Benipayo stressed the issue of just compensation must be exhaustively discussed and determined after a series of hearings. ‘Misled’
Officials stressed they would definitely appeal the Pasay court ruling that ordered the government to make a $62.3-million down payment to the Filipino-German consortium.

The Pasay court authorized the expropriation last month but on Tuesday ordered the government to hand over $62.343 million to the consortium involving German airport operator Fraport AG as partial payment for the facility.

"Definitely an appeal will be made," Transportation Secretary Leandro Mendoza told reporters. He did not say what the government thought was the amount corresponding to "just compensation" for the nearly completed project.

NAIA-3 has been mothballed since 2003 when President Arroyo revoked the consortium’s "build-operate-transfer" contract with the government on the grounds that certain terms were illegally renegotiated by her deposed predecessor Joseph Estrada in 1998.

Fraport is seeking compensation of $465 million for the terminal project, which Mrs. Arroyo wants to operate by June. The case is separately under international arbitration.

"The Pasay court was simply misled over the matter," insisted Justice Secretary Raul Gonzalez.

Gonzalez said the government would negotiate with Piatco.

Mendoza, on the other hand, said the Pasay court would "be enlightened" of the issue once the proper documents are submitted by the government.

Mendoza also said that the main issue now being resolved is money. "The government has the money. It is really a matter of what amount and who gets what," he said.

In a press briefing in Malacañang, Executive Secretary Eduardo Ermita said the government will insist the court create a three-man commission to determine the "just and fair compensation" to the contractors.

Only after the valuation is done can the actual amount of cost of NAIA-3 could be determined, he said.

Ermita added Presidential Chief Legal Counsel Merceditas Gutierrez concurred with Benipayo in citing Rule 67 of the Rules of Court in requiring the court to assign three commissioners to conduct the valuation of the property.

At the same time, Ermita said completion of NAIA-3 is now in progress.

Ermita said that because the government has already filed expropriation proceedings, the Department of Transportation and Communications (DOTC), through MIAA, is now in control of the terminal facilities.

"But most important of all, they (MIAA) have to look at the so-called 42 defects that we have noted and subject for rectification and of course. Since day one, we knew that the structure is not yet 100 percent complete, hence, MIAA is determining which one is to complete, so that it is ready for operation in six months’ time," Ermita said. ‘Go Easy’
On the other hand, some lawmakers have called on Piatco to go easy in claiming the $62-million initial compensation from the government.

Bacolod City Rep. Monico Puentevella and Zamboanga del Norte Rep. Isidoro Real called on the government and Piatco to immediately start formal negotiations on the mode of payment to pave the way for the smooth opening of the airport.

In a joint statement, both lawmakers said Piatco should be open to payment options that will be offered by the government.

Puentevella said the government’s previous offer of P3 billion to Piatco "was a very just and reasonable compensation" considering that it came close to the $62 million (approx. P3.4 billion) award as decided by the lower court.

"This only reinforced the face that the government has always been fair with Piatco even in the matter of compensating it," Puentevella said.

"Piatco should also consider the country’s fiscal situation and be open to the government’s payment options," he said.

Puentevella said the Pasay City court’s decision paved the way for the smooth operation of the airport and boost the country’s economic growth.

Real, for his part, expressed hopes that the government and Piatco will soon come to an agreement on the mode of payment as an early resolution will remove any controversy surrounding the operation of NAIA-3.

"The court ruling recognized the rule of law amidst the government’s commitment to strike a balance between national interest and upholding the interest of investors," Real said. - With Marichu Villanueva, Rainier Allan Ronda, Paolo Romero, AFP

Crazy4Airplanes

January 5th, 2005, 07:30 PM

Why do i get the feeling that instead of working together to have the terminal finally opened, these people are looking for loopholes and possible reasons NOT to open the airport.

dcdr76

January 5th, 2005, 07:34 PM

With the legal troubles, I doubt if it will open this year.

Akala ko pa naman magagamit ko na yung bagong airport on my next trip.

Lightspeed

January 6th, 2005, 05:05 PM

Why do i get the feeling that instead of working together to have the terminal finally opened, these people are looking for loopholes and possible reasons NOT to open the airport.

This is NOT GOOD.

Anyone in his right mind realizes that the interests of the Philippines are best served with NAIA-3 OPEN and not closed.

People who are obstructing the opening of the airport are not looking out for the interests of our country.

ike

January 6th, 2005, 06:46 PM

I would have to agree with the sentiment that NAIA-3 should open as soon as possible, what with the SEA Games on the horizon, as well as to make a great impression with foreigners; though it shouldn't stop there, the whole country should be pleasing to the senses - not only with modern structures but also pride for our heritage. But that is a whole other discussion.

I would like to see something productive done to NAIA-1 for a couple of reasons both personal and social:
-it's the last Filipino building I was in (I haven't been back since I left in Nov 1999)
-historical value (I mean, it IS why we call it the Ninoy Aquino International Airport, isn't it?)
-it would be more economical to renovate or "recycle" the building instead of tearing it down and building something new. Wouldn't it?

Solblanc

January 6th, 2005, 06:54 PM

MIAA conducts inventory of Naia 3 equipment
By RECTO MERCENE
TODAY Reporter

The Manila International Airport Authority (MIAA) has started an inventory of all the equipment and machinery of the Ninoy Aquino International Airport Terminal 3 (Naia 3) to become the basis of an audit to establish the actual amount spent on the build-operate-transfer (BOT) multi-million project by the Philippine International Air Terminal Co. (PIATCO).

MIAA general manager Alfonso Cusi made this revelation, saying that helping in the inventory are members from the Commission on Audit (COA), representatives of PIATCO, the local government units and the accounting firm Sycip, Gorres and Velayo.

Once a full inventory is made, the government would hire an independent accounting firm to determine the actual amount that would be paid to PIATCO and other claimant members of the consortium.

PIATCO is claiming to be paid more than $500 million, while its German partner Fraport AG is also claiming almost $400 million in reimbursements.

The two firms have gone to foreign courts to press their demands to be justly compensated.

Last December 21, the government entered the Naia 3 premises and deployed military men to secure the facility after the Pasay City Regional Trial Court issued a “Writ of Possession” document, virtually endorsing the state’s authority of imminent domain following failure of negotiation for settlement on both parties.

Transportation Secretary Leandro Mendoza said the government had deposited an initial amount of P3 billion with the LandBank as advance payment.

PIATCO balked at the government’s move to take possession of Naia 3, at the same time dismissing the initial deposit, equivalent to $53 million as insufficient payment.

PIATCO’s move appears to have been bolstered when the same Pasay City RTC issued a ruling on Tuesday, saying that the government should pay PIATCO an initial amount of $62 million as “just compensation.”

Without the payment, the MIAA cannot lease the concession areas to would-be business concessionaires and airline companies.

The counsel of the displaced employees of PIATCO claimed that the government should pay the company $400 million as just compensation and not just US$62 million as maintained by the solicitor general.

Lawyer Harry Roque said the government should pay PIATCO US$400 million.

Faced with this obstacle, Cusi said the MIAA would wait until a final valuation is made before addressing PIATCO’s demand for full compensation.

He said that the MIAA would deduct from the total amount any added expenses that the airport would incur such as the construction of service road to connect Naia 3 with Naia 1 and Naia 2 and other expenses to be incurred to remedy the 42 other minor structural defects that had been pointed out earlier.

In this connection, Mendoza said that the government would no longer push through with the construction of an P85 million tunnel that would go under the runway from Naia 3 and out of the Customs bonded warehouses on the Parañaque side.

“We may not push through with the underground tunnel,” Mendoza said, saying that whatever amount is set aside would be used to built a perimeter road so that the 30 tons of cargo unloaded daily at Naia 3 when fully operations, would be brought to the bonded warehouses.

According to Mendoza, there are plans to link Naia 3 with the Skyway apparently to lessen the expected traffic jam that would ensue on Andrews Avenue, the road leading from Roxas Boulevard to Villamor Air Base, once NAIA 3 starts operation.

“From the Terminal 3, you can travel to Makati in less than a few minutes. The groundwork are already there,” Mendoza said.

He added that the six months deadline given by President Arroyo to make Naia 3 operational would be met.

“Barring legal complications, we may be able to open the terminal in six months,” he said, adding that money is no object, because “we have the money. It’s just really a matter of what amount and who gets what.” With M. Rullan

I would have to agree with the sentiment that NAIA-3 should open as soon as possible, what with the SEA Games on the horizon, as well as to make a great impression with foreigners; though it shouldn't stop there, the whole country should be pleasing to the senses - not only with modern structures but also pride for our heritage. But that is a whole other discussion.

I would like to see something productive done to NAIA-1 for a couple of reasons both personal and social:
-it's the last Filipino building I was in (I haven't been back since I left in Nov 1999)
-historical value (I mean, it IS why we call it the Ninoy Aquino International Airport, isn't it?)
-it would be more economical to renovate or "recycle" the building instead of tearing it down and building something new. Wouldn't it?

Well, they are recycling it. I think they're turning it into another cargo terminal. It was designed by Locsin, too...

kiretoce

January 6th, 2005, 07:04 PM

I still like the idea of....

T1 for domestic flights excluding PAL.
T2 exclusively for PAL (domestic and international operations)
T3 for international flights excluding PAL, and Asian regional low-cost carriers.

But I guess none of that will matter when they make DMIA at Clark Air Field as the premier gateway airport for Manila (and the rest of the Philippines) in the future. :)

docz

January 7th, 2005, 02:00 AM

NAIA3 has 34 gates... wow :) That's quite big. Baka naman other gates have 2 airbridges... you know what i mean renell?

Based on a document from FRAPORT I have seen showing the the layout of the terminal, NAIA3 has a total of 28 gates, 20 of which directly are serviced by 34 loading bridges, the remaining 8 of which are remote gates. The 14 gates fronting 6 the 13-31 runway have two loading bridges each, the remaining 6 gates which are visible from Andrews Avenue each have one loading bridge per gate.

Because the holding rooms in NAIA3 are on the third floor, (unlike NAIA1 where you have to go down either stairs or an escalator to the second floor to reach the holding room) a ramp similar to that in NRT or BKK is used to reach the entrance to the fixed part of the loading bridge from which the movable loading bridges are connected.

13 of the 14 gates facing the 13-31 runway use these ramps from the 3rd to 2nd floor. The only gate which does not have a ramp is located at the junction between the north wing and the head-house. It is not clear in the plans how for this gate passengers reach the bridge on the second floor, but my guess is that it is an escalator.

What is very surprising about the floor plan is that a considerable amount of space in the second and third floor is used for offices and machine rooms. I would estimate that only 50 to 60 is actually used for public areas.

At the back of the south wing, which faces Andrews Avenue, there are four ramps. All four have one fixed bridge, but two gates have two movable loading bridges each and the other two have only one bridge each. In it very clear in the plans that areas with two movable bridges two gates, each of which can take in a small narrow bodies plan. The remaining two gates seem that only a one loading bridge per gate seems to be capable of handling MD-11 sized planes. You will also notice that unlike the gates in front which have two loading bridges but only one docking system per ramp, the two ramps at the back having two bridges have separate docking systems per bridge, which indicates that each bridge corresponds to a different gate. And this is evident by the way the gates are numbered.

The 34 bridges comes from the 28 in front, and 6 at the back.

I would also like to add, that unlike the ramps facing the 13-31 runway which use a single, long downward ramp, those facing Andrews Avenue consist of two short ramps. This is so that the concourse in the south wing, particularly the second floor, can have windows facing the tarmac. The third floor of the actually has a number of skylights. This problem is not present in the North wing because the gates are only on one side of the course, while the other side has windows.

For remote areas, the waiting rooms are actually at the first floor of the North wing which is reached by an escalator from the third floor.

docz

January 7th, 2005, 02:34 AM

One issue I would like to ask other's opinion on is regarding the cost of the Terminal. PIATCO claims that the terminal costs US$ 650M. Is this not a bit expensive for a terminal which only has a floor area of 182,000 sq. m. BKK Suvarnabhumi has more than 560,000 sq. m, and has comparable facilities (baggage handling, electro-mechanical systems, finishings, etc) and costs only 38 billion baht which is less than billion us dollars.

What do others think?

stephencua

January 7th, 2005, 02:43 AM

docz, i also have been doubting the price tag of $650 million for a long time now.. i guess thats one of the arguments that the contract should be voided.. i think the price went up because it factored it the commisions and bribes..

this is just my opinion though..

tyronne

January 7th, 2005, 02:47 AM

im not so sure about this but i believe it is just fair to every party if the gov't pays piatco the original cost of the project as agreed upon on the original contract, which is.... magkano ulit? $320M? i dont know... but what piatco is asking for is just too much i think. :dunno:

ewh1

January 7th, 2005, 02:51 AM

Yea it does seem suspicious counsidering the currency valuations between the philippines and Thailand. And if you look at Bangkok's Terminal you can see that the structure is much more grander compared to manila's.. Unless Terminal 3 is more advanced in terms in Equipment.. i don't know what to say...

ThisFire

January 8th, 2005, 03:41 AM

About the NAIA 3, it's been going on for too long now with too many "it's set to open" headlines over and over again! They better get their act together because a wonderful country such as the Philippines totally deserves nice airports, and the visitors should find themselves in a pleasant airport as well! Open it NOW! 2005!!!!

Kiel

January 9th, 2005, 05:15 AM

MIAA opens two Piatco-held taxiways
By Sandy Araneta
The Philippine Star 01/09/2005

Airport authorities opened yesterday two aircraft taxiways that are critical to the operation of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) in line with the government expropriation of the facility.

Meanwhile, the Office of the Solicitor General filed a motion in court last Friday asking the judge who gave the go-ahead for the takeover to inhibit himself from the expropriation case the government filed against Philippine Air Terminals Co. (Piatco), the consortium that built NAIA-3.

Piatco closed the two taxiways nearly three years ago when an internal squabble delayed the opening of the terminal, which became worse when the government in 2002 questioned Piatco’s contract to build and operate NAIA-3.

The taxiways are part of the terminal infrastructure. They connect the gleaming facility to the runways that planes use to take off and land at the NAIA.

"They were under the control of Piatco. Now that the government has taken possession of the facilities, we already opened it to the public," said Alfonso Cusi, general manager of the Manila International Airport Authority, who ordered taxiways "Delta" and "November" opened to ease air traffic congestion.

"There will be faster takeoff and landing time. There will be more efficient operations, lesser fuel for airline operators because the waiting time has been cut down. There will be a more efficient operation with the additional runway open. We will have a more efficient operation of the aerodrome," he told a press briefing.

When the taxiways were closed, "only Runway 13-31 was used as runway and taxiway at the same time. This caused delays. Queueing sometimes builds, sometimes up to eight aircraft waiting to take off before they can use the runway because of the absence of a taxiway."

Cusi said they expect Piatco to object to the opening of the taxiways but maintained there was no need to coordinate with the consortium.

"We already have control of the property through the court order. We don’t see that it is necessary because the court has already given us possession of the terminal," he said.

Judge Henrick Gingoyon of the Pasay City regional trial court (RTC) Branch 117 issued a writ of possession that paved the way for the government takeover of the terminal late last month.

However, the legal tussle took a new turn last Friday when the Office of the Solicitor General filed a motion asking Gingoyon to inhibit himself from the expropriation case following an order from Gingoyon directing the government to pay $62 million to Piatco as initial compensation for the takeover.

Gingoyon has formed a three-member panel that will determine how much the government should pay Piatco as compensation.

Solicitor General Alfredo Benipayo said the initial compensation order violated "essential procedural steps in expropriation proceedings."

While the court allowed the government to take over the terminal, the court also barred it from exercising "acts of ownership, such as awarding concessions or leasing any part of the terminal to other parties."

It also violated Republic Act 8975, which prohibits lower courts from issuing injunctions on government infrastructure projects, Benipayo said.

The OSG questioned the order because the "statute cited by the judge does not apply to the case."

Meanwhile, NAIA terminal 3 employees plan to file a motion to intervene in court next week to stop the expropriation, which they said was done "without regard to the law and the rights of other people — not only the builders, but the employees as well." They gave no details.

"Similar to the hasty issuance of the writ of possession, the Pasay RTC is now on the second stage of the expropriation, which is the appointment of three individuals for the final determination of the value of the NAIA-3 property. Clearly, Judge Gingoyon is speeding up the expropriation proceedings in favor of the government," they said in a statement issued to the media.

In 2002, President Arroyo abandoned Piatco’s contract to build and operate the terminal, claiming that one-sided provisions in favor of the consortium were inserted in the agreement after it was signed.

In May the following year, the Supreme Court voided Piatco’s government contract, ruling that the consortium was not qualified to participate in the 1997 bidding for the contract.

It also said the contract had provisions that gave Piatco "more favorable terms than that was available to other bidders at the time the contract was bidded out."

It said the "special financial benefit or advantage" given to Piatco constituted a "grave abuse of discretion" among the parties that drafted the agreement, which the tribunal said put the government "virtually at the mercy of Piatco."

The terminal was completed in 2002 but its opening was delayed by a squabble between German airport developer Fraport AG and its Filipino partner in Piatco, the Cheng family.

Fraport holds a 30-percent interest in Piatco but funded most of the project, investing over $300 million.

In 2002, Fraport said it might sue the Philippine government for damages if the company’s interests were not protected.

a00556425

January 9th, 2005, 07:07 AM

Why do all of the opinion sections of the newspapers I read say that NAIA-3 was built on the wrong side?

If they built it on the opposite side they would have to demolish that hotel beside Nayong Pilipino. And it would not be connected to the SkyWay.

bagel

January 9th, 2005, 07:27 AM

True, but having NAIA 3 on the opposite side would make it more accessible to transfer passengers from NAIA 1 and 2.

federal

January 9th, 2005, 07:47 AM

well an airtain connecting all terminals would answer that "Wrong side" issue

ThisFire

January 9th, 2005, 07:55 AM

True

docz

January 9th, 2005, 11:36 AM

My understanding of the issue that NAIA3 is on the wrong side of runway 13-31 stems froms the fact that all the other passenger and cargo facilities are located on the other side of the runway, with no direct link between these areas. The major problem likes in the fact that NAIA3 is mainly a passenger terminal, and as such it does not have facilities for handling cargo. All cargo must be thus forwarded to the cargo terminal which is located on the other side of the runway.

This is the reason why, when the project was initially proposed in 1993, there were plans to construct a tunnel underneath 13-31. This approach is used in many other airports, the classical example of which is Hong Kong CLK where the passenger terminal is between the two runways, while the cargo terminal is on the other side of the runway. In the case of the NAIA it is estimated that this tunnel will cost somewhere in the range of US$ 18 million, where as a surface access road which will go around the 13-31 runway should cost much less. My guess is US$ 4 million at the very most. Technically, the challenge is how to construct the tunnel without closing both the 13-31 runway. To be able to do this will entail a considerable amount of ground improvement work which could significantly contribute to the project cost.

The other issue pertains to the distance between Villamor taxiway and 13-31 runway which is closer than that specified by ICAO standards. I remeber in the 1980's there were plans to construct a taxiway on the Nayong Pilipino side so that planes from the domestic airport would not have to use 13-31 to get to the 06-24.

Regarding the fuel farm which is located between NAIA2 and the older cargo terminal, I was told by a student of mine who works with Shell that they intend to more it to site accross the 06-24 runways. This was in 2001, after the Rizal Day bombing, to make it less accessible to the public, and closer to terminal 3.

tyronne

January 9th, 2005, 11:48 AM

i wish there's a diagram/illustration of the airport's layout so that it's much easier for me to grasp all these runway issues being discussed :D im honestly not familiar of how the naia is exactly laid out :( all i've seen is the satellite photo of the airport but that's too small.

rico

January 10th, 2005, 09:49 AM

True, but having NAIA 3 on the opposite side would make it more accessible to transfer passengers from NAIA 1 and 2.
or maybe in ten years, they intend to build a domestic airport at the same side as naia-3. :D

p.s. fukuoka's international airport is also on the opposite side as the domestic airport. people move from one to the other via a free bus... one every seven minutes.

Solblanc

January 10th, 2005, 06:49 PM

Airlines demand written government guarantee before using NAIA-3
By Sandy Araneta and Edu Punay
The Philippine Star 01/11/2005

Airline companies are demanding a "written" commitment from the government ensuring the opening of the disputed Terminal 3 of the Ninoy Aquino International Airport (NAIA-3) this year.

"We need a written memo saying the airport will open at a particular date. We will be needing this to be sent to head offices abroad to justify our preparation," said Santiago Medrana III, vice chairman of the Airline Operators Council (AOC) and Lufthansa station manager.

The AOC is an international organization consisting of 32-member airlines and six ground handling services companies operating in the NAIA complex.

In a related development, the Pasay City regional trial court (RTC) judge handling the government’s expropriation of the NAIA-3 may face a complaint before the Supreme Court if he refuses to inhibit himself from the case.

Solicitor General Alfredo Benipayo issued this warning yesterday to RTC Branch 117 Judge Henrick Gingoyon during the hearing of the government’s motion for reconsideration on the court’s Jan. 4 order, requiring the government to pay $62.3 million to Piatco as initial payment for "just compensation."

Some members of the AOC attended the press conference yesterday afternoon at the NAIA Centennial Terminal 2 called by the Manila International Airport Authority (MIAA). It was presided by Executive Secretary Eduardo Ermita, Transportation Secretary Leandro Mendoza and MIAA general manager Alfonso Cusi.

The AOC said the Board of Airline Representatives, another major international airline organization in the country, shares the same position.

Mendoza declined to commit to the demand but said "this will be discussed" in a meeting on Wednesday.

For Lufthansa, Medrana said it would take about six months, from the time they receive a notice or commitment, for the transfer of operations from NAIA 1 to Terminal 3 to take place.

"We are looking at June and that is basically six months (from now). We haven’t started with anything yet," he said.

Cathay Pacific needs a six-month lead time upon the signing of contract.

Station manager Ed Monreal said they have asked the MIAA for the leeway, citing Cathay Pacific is one of the biggest airlines operating in the country with six flights daily to and from Manila and Hong Kong.

He noted the budget for transfer has to be prepared first as it "would cost the airline company millions of pesos."

"Airlines have to re-budget for the office and the lounges. And this is no joke," Monreal stressed.

The airline official added that other particulars such as building the infrastructure, computer connections and "links with providers" have to be readied.

Then, there is the training of airline staff, he added.

"The connections will take about eight weeks. We have to link the system with the provider," Monreal said.

Airline company representatives in the press conference all agreed it would take time to prepare the installation of communication lines and publishing of schedules.

Although they said they are willing to back the government’s takeover of the NAIA-3, airline officials reiterated certain factors have to be considered before the transfer takes effect.

Mendoza meanwhile said the government is going to hold another meeting soon to discuss and finalize where they will get the money to finally operate NAIA-3.

"There are a lot of options. There are a lot of offers. As I was saying, airport operation is a very reliable operation. There are local and foreign sources," he said, but declined to discuss the details.

He has asked airline companies to bring all their requirements in the meeting, adding that the government is considering to "issue a contract."

Cusi estimated at around P700 million the ballpark figure in government expenses to have the NAIA-3 operational. This excludes what the airlines will be investing for the construction of their offices and lounges.

For his part, Ermita said even as the appropriation proceeding is being undertaken by the Philippine government, the Office of the Solicitor General (OSG) assured them that there will be no legal impediment to the resumption of the arbitration of the international courts on the issue.

"After all, what are they after?" said Ermita, referring to the Philippine Air Terminals Co. (Piatco), the private consortium that built NAIA-3.

NAIA-3 has been mothballed for over a year now after the government and Piatco failed to agree on the amount of money spent in constructing the terminal.

In 2002, President Arroyo abandoned Piatco’s contract to build and operate the terminal, claiming that one-sided provisions in favor of the consortium were inserted in the agreement after it was signed.

In May the following year, the Supreme Court voided Piatco’s government contract, ruling that the consortium was not qualified to participate in the 1997 bidding for the contract.

In response, Piatco filed a request for arbitration before the International Chamber of Commerce in Paris, France, while its partner, Fraport filed a request for arbitration with the International Center for Settlement of Investment Disputes in Washington, D.C.

absent-minded

January 11th, 2005, 02:09 AM

hmm... things look like they are actually progressing. it still is a long shot from opening right now though, and it seems like they still have to iron out a lot of things with the airlines and more importantly with the courts and Piatco...

but it's good to know they have the cooperation and support of the airlines. umm, come to think of it, I think Philippine Airlines should actually move their international operations to NAIA-3. I know one major reason they want to keep operations under one roof at their T2 hub is because it brings in some passengers into taking PAL on connecting flights. not only that, they don't have to hire shuttles to bring them between terminals. but it's also a big headache for all their other int'l passengers who have to deal with the undercapacitied baggage carousels and immigration counters. in addition, the huge Terminal 3 will not be profitable without the international operations of PAL. it's too big... I personally want to see PAL opening up a bigger and better lounge at T3 too when it opens. hopefully, they can be convinced to move...

docz

January 11th, 2005, 05:27 AM

I agree that PAL should move to NAIA3. First, PAL makes up one third of the passenger traffic going into Manila. Second, other airlines such as Cebu Pacific and Air Philippines should be given the opportunity to use NAIA2. This can only be done if PAL moves out of NAIA2. Third, NAIA2 was never meant to be an international passenger terminal. It does not have the proper baggage, CIQ and passenger facilities that an truly world class passenger terminal should have. The issue of PAL needing a single terminal is completely hogwash. Prior to 1999 PAL had its operations split between the domestic terminal and NAIA1, and it survived. Cebu Pacific and Air Philippines has its operations split between those two terminals (Domestic and NAIA1). That is further than the distance between NAIA2 and NAIA3. I think PAL is just spoiled. IMO, PAL is mistaken if thinks that by staying in NAIA2 it will be saving money. I think if it stays in NAIA2 it will loose business because people will want the conviniences of a NAIA3. Thats the reason most people I know ride PAL, even though it is more expensive than Cebu Pacific.

Crazy4Airplanes

January 11th, 2005, 07:23 PM

IMO, PAL is just being a brat.

docz

January 13th, 2005, 08:33 AM

I think there might be a problem with NAIA3 opening this year. Appears that the government needs to pay PIATCO in full before it can operate the terminal. Its a problem because I dont think the government has made an allocation in its 2005 budget.

Solblanc

January 13th, 2005, 09:12 AM

one step forward, two steps backward... *sigh*

bustero

January 13th, 2005, 09:26 AM

Solblanc

January 13th, 2005, 09:31 AM

There will be a lot politicking for PAL to move to NAIA 3. Their fees are actually lower operating in Terminal 2 than if they are in Terminal 3. Aside from the practicalities of moving between their domestic and international flights, they also are happy to have a nice terminal as a competitive edge compared to the other domestics, who are also not to unhappy staying where they are just because the old domestic terminal is almost "free" in terms of operational fees. The economics of NAIA 3 will actually not work without PAL in the short run so they will need to move, but be sure LT will be asking for his pound of flesh for this to happen.

that would all have been avoided if PIATCO didn't steal the NAIA3 project from under Lucio Tan's nose in the first place.

But instead of PAL hanging on for dear life in a crramped terminal, I would rather see Manila have a nice airport system with a not-so-shameful international terminal and a beautiful domestic terminal. Connectivity issues are pretty easy to address.

docz

January 13th, 2005, 01:14 PM

I would rather see Manila have a nice airport system with a not-so-shameful international terminal and a beautiful domestic terminal. Connectivity issues are pretty easy to address.

I AGREE!!!!

federal

January 13th, 2005, 07:15 PM

There will be a lot politicking for PAL to move to NAIA 3. Their fees are actually lower operating in Terminal 2 than if they are in Terminal 3. Aside from the practicalities of moving between their domestic and international flights, they also are happy to have a nice terminal as a competitive edge compared to the other domestics, who are also not to unhappy staying where they are just because the old domestic terminal is almost "free" in terms of operational fees. The economics of NAIA 3 will actually not work without PAL in the short run so they will need to move, but be sure LT will be asking for his pound of flesh for this to happen.

but we must remember that all domestic airlines are allowed NOW to transfer to Terminal 2. It's just up to them to do that. Well, maybe 5J and Air Phil haven't done that since it's really more expensive to stay in T2 than the old dilapidated Domestic Terminal

renell

January 14th, 2005, 02:44 AM

It probably is more expensive eh.. but aren't there any positive returns for moving to T2? Definately there must be something.

federal

January 14th, 2005, 08:32 AM

it is expensive but beneficial in terms of passenger comfort and safety. a not-so-sparkiling domestic terminal is needed such as NAIA2. As I have said before, it is slowly deteriorating. The screens at the check-in counters are destroyed... LEDs busted. Some have placards.

And the security is overkill!!! From parking lot they frisk you, grabe.

renell

January 14th, 2005, 08:59 AM

hmm... really fast deteriorating. Looks like to me it's more of bad maintenance than anything. unfortunately that's typical of a lot of MM buildings

bustero

January 14th, 2005, 11:16 AM

that would all have been avoided if PIATCO didn't steal the NAIA3 project from under Lucio Tan's nose in the first place.

But instead of PAL hanging on for dear life in a crramped terminal, I would rather see Manila have a nice airport system with a not-so-shameful international terminal and a beautiful domestic terminal. Connectivity issues are pretty easy to address.

well it was a swiss challenge, and the emerging dragons group headed by LT did not want to pay the 365Million a year in rent bid by the Cheng Group at the time. Looks like LT wins because a new terminal is built without his money and he gets access to or control of both at a fraction of the price. The provisions that Gloria Climaco found disadvantageous to gov't were mostly put in during the supplemental contract of the erap years. And currently it's the firm and LT which are blocking what is essentially a solution to a political problem. (of course it's now at the point of no return and gma's decision has put her in a rock and hard place with this issue)

bustero

January 14th, 2005, 11:26 AM

but we must remember that all domestic airlines are allowed NOW to transfer to Terminal 2. It's just up to them to do that. Well, maybe 5J and Air Phil haven't done that since it's really more expensive to stay in T2 than the old dilapidated Domestic Terminal

That's exactly what I mean, while they do have that option, the terminal operation fees plus the groundhandling makes staying at the old domestic terminal an attractive financial option.

rico

January 14th, 2005, 12:37 PM

http://us.news2.yimg.com/us.yimg.com/p/afp/20050114/capt.sge.bli81.140105075550.photo00.photo.default-384x276.jpg

The Philippine Supreme Court has blocked a lower court from forcing the government to make a 62.3 million dollar downpayment to a Filipino-German consortium for the expropriation of its unused Manila airport terminal, seen here(AFP/File/Joel Nito)

Source (http://story.news.yahoo.com/news?tmpl=story2&u=/050114/photos_bs_afp/050114075557_usb19gow_photo0&e=1&ncid=833)

MetropolitanBoy

January 15th, 2005, 04:45 AM

Has anyone noticed the fly-overs connecting the Sky Way and Fort Bonifacio gate to the road entry leading to NAIA 3? I wonder how it will all work out and how the traffic scheme will be after these major improvements. This should mean that arriving passengers dont have to go through "unpleasant" roadways to EDSA or Makati. And getting to the new terminal would be faster. But it is possible that this could clog the road network within Villamor airbase.

federal

January 15th, 2005, 05:08 AM

it's on another thread. it's the skyway connection to NAIA3.

normandb

January 15th, 2005, 07:00 AM

the location of NAIA 3 is perfect in passengers point of view since the access road is the south superhighway they dont need to use the sucat road and the domestic road (heavy traffice in these road). it is cheaper to connect naia3 to naia 2 by an access road without building a tunnel all they have to do is to demolish the old domestic terminal and transfer it to terminal 1 or terminal 2 and the access road between terminal 3 and 2 will be a U-shape and these is the only feasible and logical answer to their problem after all it will only take 5 minutes to get from terminal 3 to terminal 2 using these U-shape road they can also build a monorail with a U-shape rail also to compliment the road. what do you think?

normandb

January 15th, 2005, 07:24 AM

here is the layout of Ninoy Aquino International Airport in Manila

http://www.geocities.com/metro_manila_philippines/NAIA.jpg

ewh1

January 15th, 2005, 08:21 AM

hey ncbmandy can you draw how the access road is gonna be? i really do not know were they plan on putting it? will they have a road and then a tunnel under the runaway?

normandb

January 15th, 2005, 11:55 AM

i will re edit the image below.

normandb

January 15th, 2005, 11:56 AM

docz

January 15th, 2005, 03:29 PM

a tunnel under the runway is not feasible because there is a river near the airport and it is very near in manila bay so the tunnel will be prone to flooding that is what i red in an article but i forgot the website. Somebody proposed that an access road from naia ter.3 to naia ter.2 is the best possible solution but they must demolish the manila domestic airport.

I believe that when NAIA3 was first concieved in 1993, they did intend to connect it with NAIA2 through a tunnel passing underneath the 13-31 just before it intersects with 06-24. While flooding may be a concern, it can easily be address by means of a sump pump. Also, prior experience indicates that the underlying conditions are not that problematic, as evidenced by the fact that NAIA2 is founded on a shallow foundation. And even if they were, this could be addressed by ground improvement measures.

I think the main issues are cost, having to close down 13-31 during construction, versus the distance travelled. Also the access road with have to pass through Nayong Pilipino, because Nayong Pilipino is directly adjacent to 13-31. Also, the main reason for the tunnel/access road is the transfer of cargo, rather than the transfer of passengers because the volume is actually very small. Were speaking about 50 tons/day of cargo versus 2000 people/day. If I understand it correctly, they are considering tearing down the domestic passenger terminal and building a cargo terminal. In this case, an access road would be the most suitable solution to this problem. However, if the cargo terminal is not move, then NAIA3 would have to be linked to the cargo handling areas within the periphery of NAIA1.

Solblanc

January 15th, 2005, 04:35 PM

Malacañang: Work on NAIA-3 on schedule

Malacañang on Saturday said work on the Ninoy Aquino International Airport (NAIA) Terminal 3 is on track for its scheduled opening in six months.

Press Secretary and Presidential Spokesman Ignacio R. Bunye said work on 42 construction defects of the controversial airport is proceeding smoothly.

A team of government officials led by Transportation and Communications Secretary Leandro Mendoza discovered the defects during an inspection of the mothballed air terminal. Some of the construction defects were classified as minor, but others would take longer to correct, Bunye said.

It is important that the safety of all concerned is assured before the airport is opened, he added.

The Supreme Court on Friday stopped Pasay City Regional Trial Court (RTC) branch 117 Judge Henrick Gingoyon from forcing the government to pay Philippine International Air Terminals Co. (PIATCO), the airport contractor, $62.2 million for the expropriation of the facility.

In a two-page ruling, the high court also stopped Gingoyon’s order creating a three-man commission to determine the just compensation for PIATCO for the construction of the air terminal.

"Considering the allegations contained, the issues raised and the arguments adduced in the petition, it is necessary to issue" the temporary restraining order (TRO), the Supreme Court said.

Solicitor General Alfredo Benipayo last Thursday filed a petition to stop the Pasay RTC judge from enforcing his order.
abs-cbnNEWS.com monitor

Francis20

January 16th, 2005, 10:48 AM

Nice photos, with all those labels on them. i really had no idea where is which until ive seen these photos. thanks to mandy.
Headlines of dailies today says NAIA will be opened in June. Here's the full article.

Court cases won’t delay NAIA-3 opening — Palace
By Marichu Villanueva
The Philippine Star 01/16/2005

President Arroyo is determined that court cases will not delay the opening of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) by June this year, a Malacañang official said yesterday.

Presidential Spokesman Ignacio Bunye expressed confidence that the government can meet its self-imposed deadline of six months to open and start operating the international terminal built by a consortium composed of Germany’s Fraport AG and the Philippine International Air Terminals Co.

In a statement, he said the temporary restraining order of the Supreme Court (SC) "paves the way... for the opening of the NAIA-3 terminal and furthering the national interest."

Bunye alluded to the SC ruling that favored the petition filed by Solicitor General Alfredo Benipayo seeking to restrain Pasay City Regional Trial Court Branch 117 Henrick Gingoyon from enforcing his order for the government to pay Piatco a deposit of $62.3 million.

He echoed the government’s position that it should not put up the $62.3-million deposit until the lower court resolves how much "just compensation" should be given to the contractors that built the terminal under the aegis of Piatco.

"As we bolster the government’s authority to take full control of the controversial terminal, all stakeholders may be assured of just compensation under the law," he said.

Fraport, which owns 30 percent of Piatco, has said it will pursue its demands for financial compensation in a long-running legal battle that is currently before the World Bank’s International Center for Settlement of Investment Disputes.

Benipayo said several other parties also made claims on the deposit and sought just compensation. Japan’s Takenaka Corp., one of Piatco’s contractors, has made at least a $70-million claim on the deposit, he added.

Bunye, in an interview over Radio Mindanao Network yesterday, took exception to talk that Mrs. Arroyo, through the eight justices she appointed to the SC, maneuvered the high court ruling to favor the government.

"I think it is a great insult to the Supreme Court, especially (since) the ponente of this (ruling) was Chief Justice Hilario Davide Jr. himself, known for his integrity, probity and wise judgment," he said.

Bunye said the ongoing repair and completion work at NAIA-3 involve 42 "major" and "minor" defects in the terminal’s facilities, including the construction of a "secured road or passageway" through which passengers’ luggage would go for loading into and off-loading from airplanes.

"It is important that we ensure once (NAIA-3) is opened, it will be safe for all concerned," he said.

Bunye refused to give details, saying the government’s official spokesman on this issue is Transportation and Communications Secretary Leandro Mendoza, whose office is in charge of completion work for the new terminal.

Manila International Airport Authority (MIAA) general manager Alfonso Cusi, whose office oversees the actual repair and completion work, expressed elation over the SC ruling.

"With this decision from the high court, no less, we are not only elated but inspired to pursue with even more determination our work program geared towards the opening of (NAIA-3) for commercial operation... by June this year," he said.

Cusi said the MIAA is "proceeding with pedal to the metal just so we could meet this deadline, without sacrificing safety concerns at the new terminal, and provided we are within the legal process and in consonance with the policies set by the government on the tourism and business fronts."

The MIAA is coordinating with government offices, airline operators and their aviation partners to effectively promote the new terminal once it is fully operational, he added. Wrong laws cited?
Piatco employees, who asked the Pasay City court to reverse its Dec. 21 decision granting a writ of possession over NAIA-3 to the government, said lawyers on both sides cited laws that are inapplicable to the case.

Lawyer Harry Roque, representing the Piatco employees, said neither Republic Act 8974 nor Rule 67 of the Rules of Court apply to the NAIA-3 expropriation, which is a special case that needs a special law.

Piatco employees, in a separate motion for intervention, demanded that the Pasay City court "quash the writ of possession" or order the government to deposit in Piatco’s account at least $565 million, which they say is "the actual replacement cost of NAIA-3."

Roque said the lower court has been applying provisions of RA 8974 on the expropriation proceedings and in its order for the government to pay Piatco $62.3 million as initial just compensation.

Solicitor General Alfredo Benipayo, on the other hand, questioned the order and argued that the appropriate law was Rule 67, which is an older law and precisely what RA 8974 had revised, according to the court.

"Rule 67 and RA 8974 contemplate an acquisition of property in a situation where the property owner who will be deprived of property has no ‘builder in good faith’ relationship with the government. Both laws serve as general rule on expropriation," Roque said.

He said Article 448 of the New Civil Code applies in the expropriation case because Piatco earned the rights of a "builder in good faith," including the "right to retention of the property until proper indemnification."

Piatco became a builder in good faith, according to Roque, when the SC nullified the consortium’s contract with the government for the construction of the terminal by "automatic operation of law."

The consortium built NAIA-3 "in good faith believing that it had the right to do so. Good faith, after all, consists in the belief of the builder that by some title he has the right to build on the land," he said.

Roque added that under the same provision, "Piatco acquired, ipso jure, vested rights in the procedure before it could be deprived ownership of NAIA-3."

He noted that even if the expropriation was properly done, the government still failed to make the "proper deposit mandated by law under Section 2 of Rule 67, as amended by RA 8974."

Piatco’s legal counsel Frank Chavez, himself a former solicitor general, said he doubts the government’s sincerity in paying the just compensation due Piatco and its contractors because the Land Bank of the Philippines literally shut its doors on the consortium’s representatives who were supposed to inquire about the deposited amount.

"This government does not have word of honor. They seem to be in ‘mental disarray’ now that the solicitor general is singing another tune," Chavez told The STAR in a phone interview.

He added that they were still studying how they will respond to the SC’s temporary restraining order, which they are supposed to comment upon within 10 days after receiving the resolution.

Sen. Manuel Roxas II, who chairs the Senate committees on trade and commerce and on economic affairs, said NAIA-3’s operation would "ease international and domestic travel in a big way, both for passengers and cargo."

He also said that though Fraport is demanding payment of $465 million for constructing NAIA-3, "there is absolutely no justification whatsoever" for the government to pay Piatco any amount in excess of the consortium’s original bid of $360 million for the project.

The President earlier said all incoming and outgoing international flights will be done at NAIA-3 once it becomes fully operational.

She disclosed plans to convert NAIA Terminal 1 into a commercial complex but failed to say what would happen to Terminal 2, which is currently being used exclusively by all international and domestic flights of the Philippine Airlines.

NAIA-3 has been mothballed since 2003 when the Arroyo administration revoked the consortium’s "build-operate-transfer" contract with the government on the grounds that certain terms were illegally renegotiated by her predecessor, deposed President Joseph Estrada in 1998. — With Sandy Araneta, Edu Punay, Jose Rodel Clapano

ThisFire

January 16th, 2005, 08:26 PM

Okay, this time it better be true!!!!! JUNE 2005. We heard it and we read it! ;)

stephencua

January 17th, 2005, 03:02 AM

lets keep our fingers crossed.. :D

bustero

January 17th, 2005, 10:41 AM

here is the layout of Ninoy Aquino International Airport in Manila

http://www.geocities.com/metro_manila_philippines/NAIA.jpg

Bow , this is a really good informative picture :)

Crazy4Airplanes

January 17th, 2005, 11:41 AM

"She disclosed plans to convert NAIA Terminal 1 into a commercial complex but failed to say what would happen to Terminal 2, which is currently being used exclusively by all international and domestic flights of the Philippine Airlines. "

I just cannot believe this. She just can't convert Terminal 1 into a commercial complex. Can't she see that its preposterous to have a Terminal 2 and Terminal 3 when there's no Terminal 1. and besides, is it really prudent to put up a commercial building in the NAIA complex? Is this exactly what we need with the threats of bombers and terorism and all that? I say refurbish T1 for domestic flights, keep PALs international and domestic flights at T2 (improve its facilities. i.e. immigration counters. duty free SHOPS not KIOSK), then open T3 for foreign carriers to international destinations.

Or, if they are really determined to transfer PALs international flights to T3,i say use both T1 (after it has been refurbished of course) and T3 for international flights, and then T2 for PAL and others for their domestic flights.

ewh1

January 17th, 2005, 12:25 PM

Here are some Questions of ours that are now Answered. this is a Interview with Businessworld and The MIAA general Manager

Last Friday, the Supreme Court issued a temporary restraining order to stop a Pasay City trial court from enforcing an order for the government to pay Philippine International Air Terminals Co. or Piatco an initial $62.3 million.

The amount is part of the "just compensation" due Piatco as the government expropriates the Ninoy Aquino International Airport Terminal 3, a joint project of Piatco, its German partner Fraport AG, and its Japanese contractor, Takenaka Corp.

NAIA General Manager Alfonso Cusi

Just days before the Supreme Court restraining order was issued, the Pasay City court denied the government's motion for a reconsideration of the payment order.

Given the far-reaching implications of the Terminal 3 expropriation attempt on business and foreign investments, BusinessWorld sat with NAIA General Manager Alfonso Cusi to clarify a number of issues involved. Interview excerpts follow. (The interview was done on the same day the government's motion for reconsideration was denied, several days before the Supreme Court restraining order was issued.)

BusinessWorld: With the denial of your motion for reconsideration on the payment order, and with Judge Henrick Gingoyon refusing to inhibit, what's next for the government?

Alfonso Cusi: Our lawyers and the legal panel of the government is preparing to file a petition for certioriari at the Supreme Court.

BW: No additional extrajudicial action on the part of the government soon?

AC: None.

BW: So you will just let the legal remedy run its course?

AC: We'll take legal steps as they are presented to us. But the work at NAIA 3, repairing and making it operational by June, continues. One major concern that we have is the prohibition to enter into a new lease agreement (for airline offices and concessions). That is something that we want to immediately resolved because with that, the airlines are not willing to go to Terminal 3, or do any investment to construct their offices and lounge.

BW: The airline companies originally asked for at least six months to build and transfer offices, and we were told they would reiterate that request. But it's mid-January already. Are you still confident of meeting your June timetable, considering recent setbacks?

AC: That is something we intend to achieve with their cooperation. Through proper planning and extending work hours, we can still catch up For the construction of the offices and the lounge, siguro naman magagawaan ng paraan iyon to cut on time Because of the need to have it (NAIA 3) opened, we probably need to work 24 hours a day.

BW: Anything significant about June? Why are we insisting on opening in June?

AC: We just like the terminal to be opened at the earliest possible time, and the earliest possible time that we have identified is June. We've been suffering too long already.

BW: What about the airline companies' request for government guarantee, written or otherwise, that NAIA 3 will be opened no matter what?

AC: I think it's just a matter of time really that this terminal will be opened [but] it's difficult to make any kind of guarantee I think they're asking for something that's not possible.

BW: Originally, the transfer of Philippine Airlines to Terminal 3 was not contemplated. My understanding was that if NAIA 3 had opened previously, it would have been for the other airlines, and PAL would have stayed at NAIA 2. But of late, it was reported that PAL would leave NAIA 2 and would also transfer to NAIA 3. Is this the plan?

AC: Yes.

BW: So, all plans made previously by airlines companies contemplating transfer to NAIA 3 would change?

AC: Probably on the location of offices, that is something that we will ask the airlines There is enough space. If they can tell us their requirements, then we can do the allocation. And then I can ask them if they want to maintain the status quo on present office assignments and people The problem is that some want to transfer now, and some probably will. But what do we do with those that will not go? I cannot reserve the office space for them. If PAL says it will support us, and we are waiting for people to tell us that, and says it is going with us all the way, and it will construct its office now regardless of the circumstancesbibigay na namin sa ganung mga klaseng kumpanya. Yung mga willing. Let's say Cathay Pacific tells us tomorrow gagawin na nila ang opisina nila, regardless of legal issues pending.

BW: What if airline companies ask for more time to transfer? Is that something your office will consider?

AC: We will reiterate our appeal to them to do their best... to open by June.

BW: I understand PAL is seriously contemplating transfer to NAIA 3, but I believe it also plans to ask for certain concessions from the government in terms of additional structures, or additional facilities. Perhaps a new cargo terminal? But all at government expense. Is this something that NAIA 3 or MIAA management is willing to consider?

AC: I haven't heard the concessions they plan to ask for. But it is really our plan to put one common cargo terminal near Terminal 3, for better and more efficient operation. That will cater to all the airlines.

BW: You were quoted earlier as saying you would need around P700 million to make NAIA 3 operational. Does that budget include the new cargo terminal?

AC: Not the cargo terminal. That's just to make the passenger terminal operational.

BW: Is that P700 million currently available to you or do you have to get financing?

AC: That fund is within our reach...

BW: But why such a big amount to make Terminal 3 operational? Is that short of saying that Terminal 3 is far from complete?

AC: There are a lot of other things that need to be completed. The power, which is the connection from a Meralco substation, then the communication, that's another thing that we need to work on... and the unfinished offices for the government... and the water. For the road to connect Terminal 3 to Terminal 1, we need to P200 million. (BW: So, that's something that's going to be spent within the year just to get Terminal 3 opened by June?) For the things we need to set up. There will be some ratification of identified defects.

BW: Are you satisfied with the three-man committee appointed by the trial court to determine the just compensation due Piatco?

AC: I don't know how the court came up with that committee I think the composition of the committee must be, of course, acceptable to all the parties The committee must also be acceptable not only to us but internationally Now, do these three members meet these qualifications? Are they acceptable internationally, credible, and acceptable to the parties involved?

BW: When NAIA 3 opens, what will happen to PAL? to NAIA 2 and NAIA 1?

AC: On the assumption that PAL is moving to NAIA 3, NAIA 2 will become the primary domestic airport. We're going to transfer the operators at domestic now to Terminal 2. Then the present domestic will become the general aviation area and domestic cargo area. That will improve operations domestically, as well as internal security. For Terminal 1, the options include converting it into a cargo terminal for freighters international cargo planes We can also convert it into an exhibition center where Duty Free, the casino, and the other travel-related industries will be located. And for the open spaces -- the two or three parking areas that we have developed -- we can put up a modern commercial center. (BW: All at government's expense?) Those activities are better done by people who understand the business.

BW: What about Clark International Airport?

AC: Clark has to be developed in tandem with the Manila international airport What we'd like to do is develop a hub operation, and that can be achieved only with an airline making it as a real hub. Then Clark has to be developed into a logistics center for South East Asia. That's what the President wants. There are a lot of good reasons why it should be But its not just by putting facilities that you can make a hub, you need partnerships with airlines or operators (like Fedex or DHL.) Aside from making it a logistics center, we're also going to develop it into a passenger airport as an alternate to Manila You're going to create another Cebu by doing that, another destination. Clark, and then north of Manila, will be part of a new destination We also have another concern: the new Airbus 350 requires space for its wider wing span. And NAIA 1, without altering it, cannot accommodate it. You can land a 380 in Manila, but those that taxi would have to stop and give way.

BW: What about the other "international" airports nationwide? Any initiatives or projects for them?

AC: First we have to finish the NAIA 3. Then we are going to address the basic needs of the other international airports -- facilities for immigration, passengers. We're also making sure that we have safer runways.

BW: Are you raising terminal fees?

AC: We're studying that Nothing definite. But the desire is there to increase the fees because we need revenues to fund all requirements, especially on the security.

BW: Is it true that NAIA 1 got a failing mark from the US Transport Security Administration?

AC: If that's true, then that should have been all over the papers, and there would already be a notification. And you will see people panicking.

BW: Why expropriate? And why now?

AC: Expropriation is already the last recourse. The government tried all after the Supreme Court nullified the contract. The government, through different quarters tried to have a resolution, nonlegal, out-of-court settlement Then we ended up with two arbitration cases, one in Singapore, and one in Washington. Despite the arbitration proceedings we still negotiated, but nothing happened.

BW: Was it not more prudent to just wait for arbitration to finish? And why devote so much to negotiation? Why didn't the government expropriate immediately after the Supreme Court nullified the NAIA 3 contract?

AC: I think expropriation immediately after the Supreme Court decision would not have been looked at kindly Now we can say the government tried everything, tried all measures, but nothing could be done, so we went for expropriation.

BW: What happens to the arbitration cases?

AC: They are still ongoing Hinihingi nila is $625 million, and the government is saying $300 million.

BW: In your opinion, is $300 million a reasonable amount?

AC: $300 million is based on the contract of Piatco with the contractor.

BW: Is the government actually prepared to pay that amount and will not have difficulty raising money?

AC: Once there is determination (of the price), and it is final and executory, then we are obliged to remit that amount It will not require legislation because it was contracted by a government corporation. (Note: On the night of this interview, Press Secretary Ignacio Bunye said the downpayment of over $62 million will come from the Manila International Airport Authority, Mr. Cusi's office.)

NAIA Terminal 3

BW: Late last year Secretary Bunye said a politician was helping the government negotiate to get Terminal 3 opened. Would you know who Secretary Bunye had referred to?

AC: I don't know, maybe that's part of the effort to come to an amicable settlement. (Former presidential candidate Raul Roco was identified late last week by the Palace itself.)

BW: In your opinion, how much in downpayment should Piatco get?

AC: In the absence of a good basis, we just came up with ($62 million) to say that government is willing to pay... (There was no basis) because there was no declaration, there was no valuation, there was no tax declaration. That's only the building, the land is owned by the government, and the building was constructed on that land

BW: Assuming a judicial determination on how much must be paid. But at the same time both arbitration panels -- in Washington DC and Singapore -- both rule against you. That will involve a very big amount. Is that something the government can afford?

AC: It cannot be double compensation in this case.

BW: So if we pay the amount set by the court, then the arbitration should end?

AC: Don't forget the government also has claims. And if we follow the computation made by our legal panel, it will appear Piatco even owes the government. Because if you quantify the opportunity loss the country suffered because of Piatco's nonperformance, then the amount is quite enormous. And here you're not even quantifying what the passengers of the domestic terminal have suffered... So while arbitration is ongoing, and while expropriation is ongoing, let's open the terminal, which is rightly due the people.

BW: Have you taken possession of the premises?

AC: We have taken possession. In fact, I opened already the taxi ways -- two taxi ways that have been closed for more than two years and have affected the airline industry, especially the domestic operators, because instead of having a runway and a taxiway, they had one runway that was used as a runway and a taxiway at same time.

BW: Solicitor General Alfredo Benipayo said he felt the Pasay court seemed to be in a hurry. Do you feel the same way?

AC: At the rate that he (Judge Gingoyon) is going, he is a very efficient judge...

BW: What is the government prepared to do to get this airport opened?

AC: Tuluy-tuloy na iyan. The opening of the taxiways is the proof of the government's determination.

BW: How about the expropriation's supposedly negative effect on investor confidence?

AC: So far the feedback internationally hasn't been bad

BW: Some get the impression that expropriation is just a roundabout way of actually transferring control over NAIA 3 to business groups other than Piatco?

AC: I don't think so, we'd like to run it now. Yes, we are going to privatize, but not immediately We have to first stabilize the operation of Terminal 3, and regain investor confidence At most, a period of five years.

BW: But what mode of privatization? And what kind of bidding? NAIA 3 already went through a couple of biddings, several reviews, two administrations, and yet in the end its contract was still voided Supreme Court. If the bidding process wasn't faulty, we wouldn't be here now. So, what's the assurance that down the line, when we bid out the operations of NAIA 3, the same thing will not happen?

AC: That is something that will require a lot of study -- bidding that will have credibility internationally That's why we have to regain investor confidence we have to have transparent bidding... we're thinking of privatizing because we believe the private sector can do better than us Look at Terminal 1, that's a 23-year-old facility, but it doesn't have to be like that. It's just that we did not maintain it properly. In contrast, look at Terminal 2, which is a five-year old facility. We are trying to reverse the situation and we are trying to reengineer everything We are engaging the services of a property manager for NAIA 2 If we can prove the government can do it better than the private sector, then we won't have to bid it out, right?

renell

January 17th, 2005, 12:32 PM

Or, if they are really determined to transfer PALs international flights to T3,i say use both T1 (after it has been refurbished of course) and T3 for international flights, and then T2 for PAL and others for their domestic flights.

Too confusing, especially for Manila. It's not an international hub, that we would need 40 or so gates would we? anyways erics posted interview is a long one, but if you find the good bits, you will find very informative answers to our questions :yes:

Crazy4Airplanes

January 17th, 2005, 07:48 PM

NAIA 3 is no longer a white elephant
By Atty. RICK M. ABCEDE
One of the major issues raised by the opposition in the last May elections against President Arroyo was her inability to open the badly needed, ready-to-use NAIA 3.

Al Cusi, the hard-working general manager of the Manila International Airport Authority (MIAA), says MIAA is paying a staggering annual rent of P200 million to the Bases Conversion Development Authority for Terminal 3 even as it lies idle. Not only that, the government so far has spent around $3.5 million for legal and arbitration fees in its legal battle with Terminal 3's builder, PIATCO, which refused to turnover the finished airport to the government.

The contract for the construction of the terminal was signed way back in 1997. The building was finished and the terminal was scheduled to open in 2002 until the Supreme Court nullified the contract last year for alleged irregularities.

Powerhouse team

Because the disagreement between the government and PIATCO was brought to international arbitration, the hands of the Arroyo administration were tied. It could not open the terminal while it continued incurring huge expenses for a facility that was fast deteriorating.

Against such a backdrop -- the government hemorrhaging financially at the same time that it is unable to use a vastly important infrastructure -- the expropriation proceeding recently undertaken by the government could not be but a brilliant legal strategy, authorized by the Constitution, the Rules of Court and the MIAA charter.

As a lawyer and advocate, I could not help lament the government's inability to open a facility that would have shown to the world our capacity to build and operate a first-class airport, comparable with recently opened airports in other parts of the globe. It was as if our very observance of the rule of law had turned us into prisoners of the legal system itself.

Kudos to the ad hoc powerhouse team headed by the indefatigable Executive Secretary Ed Ermita, and composed of Trade and Industry Secretary Cesar Purisima, Transportation and Communications Secretary Larry Mendoza and presidential counsel Mercy Gutierrez. They should be lauded for this legal coup which has broken the chains that would have shackled to disuse our premiere airport for years, considering how long arbitration proceedings take.

The takeover of the terminal is long overdue -- and per Ermita, "clearly shows the political will of the Arroyo administration." National interest is definitely at stake here, and the move has been hailed by the business community and the public in general. As expected, PIATCO condemned the expropriation, which is but an exercise of the government's right of eminent domain, as high-handed, done in bad faith, and a violation of due process. What PIATCO wants is for the government to suffer predictable delay in the international arbitration proceedings, while the terminal rots and the public remains deprived of its use.

Solutio indebiti

In the first place, PIATCO wants to be paid an unreasonable amount of compensation so the terminal could open without legal impediment. While it signed with a Japanese contractor to build the facility for only $323 million, PIATCO wants $530 million as payback. That's a difference of $207 million, or more than 64% of the actual expense for construction. It seems PIATCO has become a victim of its own greed. In legal gobbledygook, this would be solutio indebiti or unjust enrichment at the expense of another. A month ago, PIATCO even arrogantly barred MIAA officials from entering the terminal, even as it stands on government land.

Against PIATCO's claim of treachery and lack of due process, the fact is our government DID observe due process. It went to court for the expropriation proceedings and made a P3-billion deposit to answer for whatever amount the court may adjudge as "just compensation" for PIATCO in building the terminal.

Governments here and in other shores have expropriated private property before, and there is nothing new about this, except that in this case, the property is one of great magnitude (18.25 hectares) and of national importance. The power to expropriate is inherent in government, essential to the exercise of the police power of the state.

PIATCO claims that with the takeover, the government might vandalize the terminal and damage its facilities to manipulate the price it is supposed to pay PIATCO. This allegation is stretches the imagination too much, and goes against ordinary human experience. It may be likened to a person who builds a home, then damages parts of the house just so he can save on payments to his contractor, which would be absurd.

Test of leadership

I remember that during the Marcos dictatorship, some private properties were taken over without observing due process and nary a compensation for the owners. This time, under a democratic environment and a Constitution that observes due process and the concept of ownership, proper legal steps were taken. Democracy may be a long, patient and tedious process, but with needed political will and a strong leadership, things get done the proper way without trampling on certain basic liberties.

We should, of course, study carefully the effects of the takeover on foreign investments, relations with countries involved in the project, and our commitments under international treaties. But as business consultant Peter Wallace said, this will not drive away investors as long as it is fully explained by the government, which Trade Secretary Purisima is doing.

NAIA 3 would have been another Bataan Nuclear Plant were it not for the efforts of Mrs. Arroyo and her dedicated officials to find a solution to this festering problem. Recent surveys may have shown a dip in GMA's popularity ratings, but as we have always maintained, the presidency is not a popularity contest, but is a test of leadership of the first order.

The author is a the national chairman of the Filipino Lawyers for Good Governance, Inc. (FILGOOD). E-mail comments to filgoodrma@yahoo.com.

E-mail this story