It's a tiring issue now. And to think that besides the tourists, the SEA Games are going to take place and terminal 3 might not be open by then. Whatever. Just convert the terminal into one big mall so this could just be finished already.

Here we go again....
Controversial NAIA 3 opens by yearend


THE controversial Ninoy Aquino International Airport Terminal 3 will open before the year ends.

This was disclosed yesterday by Transportation and Communications Secretary Leandro Mendoza as he belied reports that the opening of the NAIA 3 terminal will be delayed until 2006, adding that government lawyers are now working double time to stop the legal impediments delaying the project.

The government, through the Manila International Airport Authority and Takenaka Corp., the Japanese firm hired to finish the high-tech airport facility, were scheduled to sign an agreement last July 15.
Jeffrey C. Tiangco
People's Journal


...July 15 is over. That means Takenaka will resume work to finish the NAIA 3 facility anytime now...make it happen, pleeeease!

salamat naman kala ko natabunan na rin ito ng gloria gate hello garci tape controversy

Here we go again....
Controversial NAIA 3 opens by yearend


THE controversial Ninoy Aquino International Airport Terminal 3 will open before the year ends.

This was disclosed yesterday by Transportation and Communications Secretary Leandro Mendoza as he belied reports that the opening of the NAIA 3 terminal will be delayed until 2006, adding that government lawyers are now working double time to stop the legal impediments delaying the project.

The government, through the Manila International Airport Authority and Takenaka Corp., the Japanese firm hired to finish the high-tech airport facility, were scheduled to sign an agreement last July 15.
Jeffrey C. Tiangco
People's Journal


...July 15 is over. That means Takenaka will resume work to finish the NAIA 3 facility anytime now...make it happen, pleeeease!
Well a least the progress is now starting up again....:D

You think if they finally open the airport and PGMA is there for the ribbon cutting ceremony, would those douchebag militants be there to try to spoil the grand opening?

Glad to hear some progress for NAIA 3

I hope that scheduled opening is now true.

Takenaka, gov’t ready deal to complete mothballed airport

The Philippine government will give Takenaka Corp. $100,000 in indemnity to parry possible legal charges and make it agree to complete the moth-balled Ninoy Aquino International Airport Terminal 3 by yearend as promised by Malacañang.

BusinessWorld sources at the Department of Transportation and Communication said that Takenaka and the Philippine government had also agreed to sign within the month a multi-million dollar deal and that the two parties were finalizing details of the airport’s completion and commissioning schedule.

In May, Takenaka agreed in principle to commission the equipment and complete the construction of the airport at half its bargaining price of $106 million.

However, Philippine International Air Terminals Co. (Piatco), the company that built the airport, said Takenaka cannot enter into an agreement with the government without violating the state’s earlier contract with Piatco. The firm said it may sue the foreign contractor for damages should the deal push through.

The Supreme Court in May 2003 had declared the contract between the government and Piatco as illegal.

Piatco refused to give up the facility until it was reimbursed for project expenses, forcing the government to expropriate NAIA-3 in December 2004. It wants $625 million in compensation but the government is offering only $300 million.

"We are still in negotiations with Takenaka. In fact, [the] general framework of agreement has been approved by both parties. We are just waiting for the finalization of the construction work agreement so we can sign both documents," a source at the Transportation department said.

Takenaka officials flew in last month to negotiate with department officials. If a deal is not forged within the quarter, the Philippine government may opt to award the airport’s completion project to pre-qualified Japanese and Filipino contractors without bidding.

Government officials plan to invoke an "emergency situation" clause to justify the skipping of the bidding process. -- Kerlyn G. Bautista

bah. it's still talking.

new news regarding naia 3

o ye this is my 200 post :)

GMA gov’t sidesteps Piatco payment


Wednesday, 07 27, 2005

President Arroyo has no intention of paying the Philippine International Air Terminals Co. Inc. (Piatco) any compensation for the expropriated NAIA Terminal 3 project.

Industry sources informed the Tribune yesterday that the Arroyo government, through the Department of Transportation and its related agencies' forging an agreement reportedly scheduled for today, with the Piatco contractor, Takenaka, it would be the Japanese contractor that would be paid, while Piatco, the owners of the project, would be left hanging by the Arroyo government, while the airport will be open for business.

They pointed out that to this day, since government has not paid Piatco compensation for expropriating the project, and even in the face of a regional court order saying the government is barred from exercising ownership rights, the Arroyo government insists on getting Takenaka onboard to finish the airport project.

“How can they (Arroyo government) enter into a contract legally with the Japanese contractor when they are not the owners of the Naia 3 terminal project, since they haven't paid them (Piatco) just compensation?”

They said if the Manila Airport Authority is barred from entering into even a lease contract with the airline companies, precisely because this would be an exercise of ownership rights,


it would be a worse violation of that court order with the government entering into a contract with the Japanese contractor who is under contract with Piatco, to finish the project, prior to Piatco being paid compensation.

They pointed out that other irregularities mark the deal the Arroyo government and Takenaka forged, as this is reportedly a “negotiated contract,” and done without any public bidding.

It was also learned that the contract between Takenaka and Piatco is on a “turnkey” basis, where a “lump sum” payment would be made by Piatco to Takenaka after completion of the project and after the project is turned over to Piatco.

The sources pointed out that with the government and Takenaka entering into a contract, this would be yet another violation and worse, would only convey the strong message to the big ticket investors that not only are contracts between original investors and the Philippine government not held sacred, but also that government can expropriate any and all projects without paying a single centavo in compensation.

“It is even worse now, with the government even going so low as to bribe the contractor of Piatco to finish the airport project by assuring him of payment of his share, and thereby, keep Piatco and its partners from being paid by government,” the industry insiders said.

It will be recalled that Mrs. Arroyo unilaterally declared the Piatco Naia Terminal 3 contract null and void while the Supreme Court upheld that presidential declaration.

The high court then claimed that Piatco had no financial means to contract such a big ticket project, even when the project was already some 98 percent finished.

President Arroyo also ordered the project expropriated but has refused to pay Piatco and its partners compensation.

Her administration has also refused to abide by the regional court order for government to pay Piatco some $62 million the Arroyo administration had claimed to have earmarked for the downpayment of the compensation package.

To date, neither Piatco nor its foreign partners, such as Fraport AG, has been paid a single centavo in compensation.

Piatco and Fraport lodged separate complaints before two international arbitration courts, one in Singapore while the other is in New York.

Fraport, in its complaint, brought up the issue of corruption against the Arroyo administration, along with her business and legal allies, in getting the contract declared null and void.





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Bishops privately advised GMA to quit
Arroyo plays visibility game for Cha-cha, goes for media play


No coup, Gloria to leave Frank alone, assures Malacañang

Palace blasts Erap’s ‘out of tune’ Sona

Gloria laughs off ‘weak’ impeach case

Isn't the Tribune the paper that has a "anti arroyo" bias?

ugh... media.. u can't tell if its credible or not

It doesn't really matter, at least to me, what happens in the middle.. I mean we're in July 2005 now. This is ridiculous. To the extreeeme.

to begin with, there's still arbitration going on with regards to Fraport and PIATCO. Gloria just wants to make sure first that those proceedings are out of the way before any talk of compensation. After all, if we paid PIATCO, and then the courts tell us to pay PIATCO again, it would be a little unfair, wouldn't it?

NAIA 3 as seen from the domestic airport..

http://img.photobucket.com/albums/v666/gianavee/manilavisit/naia3.jpg
http://img.photobucket.com/albums/v666/gianavee/manilavisit/IMAG0189.jpg

hey guys, do you think that the proposed change of gobetnment will again delay the opening of the new terminal? i hope not.

sorry. that is change of the government...

It depends what you mean by proposed change of government. If you mean charter change and federalism, then the NAIA shouldn't be affected as any process that rewrites the constitution will take a long time. But then again, building an airport needn't take as long as this one has so who is to say that the current state will not be indefinite?

If you mean change of government as in for some crazy reason the military could have a coup d'etat and there will be a rebellion, then NAIA could be threatened as will the rest of the Philippine economy.

BTW, shouldn't we close this thread and have a NAIA Terminal 3 2?

Yeah.. over 500. though mike, I think this is the 3rd NAIA 3 thread.... but not to worry. We still have less NAIA 3 threads than delays on the opening :laugh:

hi simply me,
you do seem to have quite a lot of nice shots of the airline and airport scene in the philippines. PLEASE KEEP US POSTED ! noone else has done it so far so throughly.
salamat po !
philpal

^^thanks... more to come, soon...

hey guys, do you think that the proposed change of gobetnment will again delay the opening of the new terminal? i hope not.
NO

GMA will not resign.

There's not much impetus for a People Power nor a coup as yet.

The airport is scheduled to be open by hook or crook as per dotc before xmas, this is one of her crowning achievements.

Allt he legal charter change etc stuff will take time.

lets keep up this thread renell once started. was a great idea renell, hope you don't mind me picking up a new one. the old one seems to have closed.

now bustero, i definately share your opinion, GMA should not resign. but she has to regain all that confidence she lost. have you guys noticed the lack of economic pick-up lately in the news ? she needs a better PR campaign. the philippines was doing so good ! we have to help her to get back to it !

T-3 should open in november as planned. THAT would certainly help to refurbish her image, if she keeps that promise. just in time for the asian games. perfect PR, the world would talk about it ! but it needs the proper satisfaction of whoever needs to be paid. piatco or fraport or taneka, this has to be cleared properly and swift. compensation has to be fullfilled. whoever put in the monney, has to be paid back. then again, perfect PR for the philippines internationally. investments will flow in after these procedures are implemented. definately. the econnomy will pick up again. so, in my opinion, T-3 now can play a key-role in economic growth and pick-up where we were before the "phil(water)gate" scandles started.
philpal

lets keep up this thread renell once started. was a great idea renell, hope you don't mind me picking up a new one. the old one seems to have closed.

FYI, a thread is closed once it goes over 500 posts. Thanks for taking the initiative to start T3 NAIA part II! :okay:

Not much news about NAIA lately. Too bad. :down:

has anyone seen any airplane docking at T-3 for tests yet ? i mean november is just up ahead.....(3 more months to go)
philpal

Are there no newer pics you guys can post again for the new NAIA terminal 3? I wonder why whenever I posted any questions or comments in any of the forums here in the Philippines side, I get no response or answers. I know i always brush my teeth...LOL

don´t worry xDieselJockx, be happy !
it does take time sometimes for forumers to answer, but they do. it´s just that we have to tend to some bread-earning work sometimes....there are some nice pics on the MIAA website, terminal III (which lately seems to be off-line somehow), and if you´d have a look at the thread : airplanes and airlines II, last 2 pages you will see some nice pics posted by simply_me, taken out of a A320 Cebu Pacific flight prior to take-off. rds from philpal.

Thank you so much Richard, I'll check them all out today ....

Hopefully T3 would be operational but I'm also looking forward to the international airport in Clark if the plan continues.

well, i´m really glad to see some new nanes on the forums (which does not mean that i´m tired of my former pals on this thread), but it´s always refreshing to see/hear new names, which means new people interested in the philippines ! glad i could help out xDieselJockx, and WANCH sorry, but this might take some time before it is comparable to HK ;-)
but they are picking up quite quickly !

no news on t 3 lately ?

Slim pickings in the news about NAIA lately....here's one! :colgate:

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

Managing toilets is key to airport chief's success
By Nikko Dizon Inquirer News Service Aug 17, 2005

Alfonso Cusi's toilets are a measure of his success as general manager of the Manila International Airport Authority (MIAA). Giving priority to the repair and renovation of toilets at the Ninoy Aquino International Airport (NAIA) has been the centerpiece of Cusi's program to improve the terminal building since he took over as airport chief. "If we cannot manage our toilets, we cannot manage anything," Cusi said in a recent speech marking his first year as airport chief this month.

Endless spot checking

"After one year of constant follow-ups, endless spot checking and actual cleaning and repairing activities, somehow we have made real progress, or so some of our ardent observers say," he said.

Although far from the sleek and modern toilets in other airports abroad, the restrooms at the 2-decade-old NAIA Terminal 1 are at least newly painted and have working faucets and flushes. Facilities at the newer NAIA Centennial Terminal are automated and are comparable to those found in the more advanced countries.

Teresa Pacis, a communications director and frequent traveler, told the Inquirer the NAIA restrooms were not "super clean" like those found at the upscale Rockwell commercial complex, but "there's definite improvement from before."

Windows to the world

Jocelyn Degollado, an advertising executive, said while the toilets in NAIA were generally clean, they lacked toilet paper most of the time. Clean toilets matter, said Degollado. The airport is the first thing that foreigners see on arrival in the country. "The first stop after immigration is usually the toilet," said Degollado.

Cusi is conscious of this. His first 100 days work program included cleanliness and orderliness, security enhancement, image building, organizational restructuring, financing reforms, corporate planning and enhancement of business potentials.

"Our international airports, most especially at the NAIA, are the Philippines' windows to the world. NAIA is a microcosm of our society, culture and environment. If we are to improve our image to better attract tourists and investors, we have to start with NAIA," he said.

Admittedly, Cusi said the MIAA had "to make the best of an aging airport" while waiting for the legal mess over the state-of-the-art NAIA Terminal 3 to be sorted out to finally make it operational.

Among those that Cusi considered as MIAA's accomplishments under him were the rationalization program for airport concessionaires. The MIAA recorded a net income of P366 million for the first semester of the year, a 16-percent improvement over the same period last year.

Good news!!! Now let's tell them to improve the domestic and international transfers so all the real exhausted international passengers would not have to go through a long traffic jam just to miss their next their domestic and final connections, maybe they can provide a good baggage handling and transfers. I just feel for those who travel with infants/toddlers. I also noticed that they don't have diaper changing station in all the rest rooms or family stations especially at the baggage claim section.

why is tp so expensive in the phils anyway? Are they imported. I would say manufacture of toilet paper would be lucrative business in the Phil.

I thought those toilet papers are locally made just like those baby diabers as the diapers in the philippines are thinner and lesser (fair) quality than what you can buy in the US or elsewhere. Who knows??? Maybe the local enterpreneurs needs to venture in this type of business so toilet papers does not have to be imported if ever they are actually being imported. If it is expensive for the airport authorities to provide toiletries in NAIA, they can put a vending machines for toiletries and other necessities in and around the major points of the airport.

I heard kasi daw ninanakaw din daw ng mga pinoy pati yung sa mga department stores at malls. ano ba yan lahat na lang pati ba naman tp, mga walang disiplina.

Well I can understand the mall but the airport most people there are coming fr overseas and foreigners as they do not allow localswho are sending their relatives to come inside the airport. So I doubt those people will steal tp from the airport.

strange enough that a country has to discuss a toilet-issue of an airport.....as there are more important issues to define, like opening a 500 million dollar facility for the convenience of the riding public......

Well it is part of a world class airport a modern toilet. And this is always brought up by complaining passengers .

Apparently yung mga papalabas na pinoy gumagawa din non, ninanakaw daw yung mga tp. Bakit kaya hindi na lang bumili eh mura lang yon.

strange enough that a country has to discuss a toilet-issue of an airport.....as there are more important issues to define, like opening a 500 million dollar facility for the convenience of the riding public......

Funny it may seems Richard, I started giggling about the toilet paper issue, but I guess we (or I atleast) were trying to point out improving the airport services. Physical structure or the aesthetic is important for a 1st impression, but for me it's the efficiency of services is vital, next would be convinience, accessibility and lastly the winning smile of the Filipino people.. :)

haha, it is only fitting and proper that we talk about toilet paper when talking about NAIA 3!

you guys are right, sanitary convenience is vital to any countries image. besides, it is a matter of good education and culture. comparing toilet paper with T 3 is some true but sarcastic comparison. lets just keep fingers crossed T 3 will open in 3 months time, as predicted by the government. i just remember what GMA criticized when davao international was opened. NO TOILET PAPER in the ladies room !

does anyone know when and WHERE on the NAIA premissis CEB's joint venture with singapore airlines maintenance center is being set-up ? they are supposed to care for CEB's new fleet of airbusses, and eventually other airlines frequenting manila. that again would be quite a strike to lufthansa maintenance (former a PAL company), as they try hard to win contracts with other airlines. right now they are servesing PAL, lufthansa, AUA, and air mauritius. on the other hand, competition is always good for service. so where will the CEB/SIA hanger be built ?

any activity on that tunnel project from T 3 to T 2 ? or on the runway/taxiway expansion being undertaken by taneka ? and what about the road access from skyway to T 3 ? any NAIA activity at all lately ? no statements in any press releases so far, or maybe i've missed something......?
(got to keep this thread active, after all, it still is the gateway to the philippines with over 15 million passengers per annum)...
philpal

I know alot of people cannot wait til this airport opens ,including myself . It is long overdue.

I think every filo in SSC is. It's August now... I thought it was last month?


On second thought, many here has been thinking that. Every month more disappointments

It was supposed to be operational June 21 right?

It is long overdue.Long overdue indeed... It would've added a nice touch for the SEA Games but as long as it opens THIS year I guess...:(

the last opening date was scheduled for nov 2005, just in time for the asian games. remember it was in the papers ?

Long overdue indeed... It would've added a nice touch for the SEA Games but as long as it opens THIS year I guess...:(

hahaha...we were hoping it would be open for the Philippines' "year of tourism" back in 2003:D

well whatever we are discussing, it is NOT open, and the rest of the world is laughing.....

back then when i went home last dec 15 2002 the officially opening, it didnt open. they better open this year because im heading back again. 3yrs almost. perty pathetic

I thought NAIA 3 is slated to open last June pero hinde nag-open... Sa tagal nitong mag-open, baka maunahan cla ng contstruction at pagbukas ng MCIA II

It was supposed to be operational June 21 right?

June 21 2003 if I'm not mistaken:D looool. But they still intend to open it... yawn. :sleepy:

The intended opening orginally was actually December 2002:D

i think this airport will never open... they dont really prioritize this one while they are hungry for tourists...

you have a point there myx. somehow this situation is absurd.

Ahhh Politics, makes life interesting, think about it if it opened 3 years ago we would have not have had multiple threads bitching about it's non-opening, it's probably god's plan to bring this forum closer to one another, we all fight in the other threads but in this thread we all agree, it's taken too long and it should open, quite a miracle for filipinos:)

^^ But then if T3 opens we won't be as close as we are now! ;) :rofl:

but it's worth opening it. we will find another thread to aggree again......

a new cargo terminal at the domestic airport ? then they could tear down the existing one next to T2 and prolong T2 to the west towards T1.

Ahhh Politics, makes life interesting, think about it if it opened 3 years ago we would have not have had multiple threads bitching about it's non-opening, it's probably god's plan to bring this forum closer to one another, we all fight in the other threads but in this thread we all agree, it's taken too long and it should open, quite a miracle for filipinos:)

what a way to view it:D nah, we have lots of threads where ppl get along.

hehe but this particular thread, really , everyone is in super agreement LETS OPEN THE THING !!!! :):):) hehehe hayyyyy

pangit ng international airport natin. sana nga mag open na ang T3.

^ Uhuh!!

you guys should check this out http://www.airlinequality.com/Airports/Airport_forum/mnl.htm

majority of the comments the current airport is getting is.. let's just say not something to be proud of.

and most of these passengers are complaining about too much security checks.

^^ Countless security checks I can deal with, it's the dilapidated and rundown facilities at T1 that gets on my nerves! :rant: Really not a good first impression of the country to everyone, Balikbayans and foreign tourists alike.

The old Manila Airport is really getting criticism... When I went to their CR, I needed to use a bucket and pail...And, mapanghi po doon! Unlike NAIA T2 which at least has automated faucets and urinals

i hope these comments will stop onced nais 3 opens , we need to give all these foregin travellers a nice welcome guys

But then we won't have anything to talk about in this thread if NAIA T3 opens.

im sure there a lots of things to talk about when it opens, im excited abt its future and looking forward to seeing nice comments being posted abt naia 3 - they should do something abt those annoying security checks, but personally i dont mind its for everybodys peace of mind

But then we won't have anything to talk about in this thread if NAIA T3 opens.

We can then move on to DMIA Clark...and rant about it, because it should have started construction a few years ago.:D

pangit ng international airport natin. sana nga mag open na ang T3.

:lol: You're about 2 years late in making that statement:D

Why does it seem no govt. project ever opens ontime.

Many government projects open on time, you just hear about the problems, media does not play up flyover, bridges , ports etc that actually came under budget, on time, nobody notices it much. just troll the threads

BIG NEWS

FOR THIS THREAD

Just saw in ANC that Emilio Yap just bought Fraport out! THis is a big development, there may be no impediment to opening the airport in terms of questioning who owns it. Looks like this could be the break we're waiting for. A friendly party has come in as a white knight to take the teutons out (too bad for them - may be bad in the long term for us) and solve the ownership compensation issue.

wow thats great news i wonder how much he paid fraport and wht abt piatco were they also bought out that could probably cost him a few hundred million of usd i wonder where he got that money though i know hes a very rich man and a generous philantrophist too

Saw it on the news, here's what I picked up from their website, looks real and hot, so exciting may airport na matutuloy na tayo!

heres the link: http://www.fraport.com/cms/press/dok/64/64543.fraport_receives_takeover_offer_for_its.htm

News & Currents
Fraport Receives Takeover Offer for Its Share in Manila Business

26.08.2005

48/2005

FRA/rap> A Philippine company has made a preliminary $200 million offer to purchase Fraport AG's shares in PIATCO, the operating company of Manila international airport's Terminal 3, and its shares in the other joint-venture companies: PTI, PTH and PAGS. Fraport AG accepted this offer on August 26.

A corresponding shareholding purchase contract now has to be negotiated and completed within 15 working days. The purchase price for Fraport's shareholdings has to be paid in two tranches. The first tranche in the amount of $50 million has to be paid shortly after the purchase contract has been signed. The second tranche in the amount of $150 million has to be paid within six months of the contract signing. The transfer of Fraport's shares and various rights and claims will take place once the second tranche has been received.

The transaction is conditional on approval from Fraport AG's supervisory board. Furthermore, the other joint-venture shareholders have to relinquish their buy-first option.

A Fraport spokesperson stated that the company has been striving for a long time to exit Manila with as much financial compensation as possible. Now, here is a possibility for achieving a pragmatically acceptable exit from Manila. This opportunity should be utilized.

For More Information, Please Contact:
Fraport AG, Robert A. Payne, B.A.A, Intl. Press Office (Dept. UKM-PS),
Corporate Communications (UKM), 60547 Frankfurt am Main, Germany;
Tel.: +49 69.690.78547; Fax: +49.69.690.60548;

thanks for the news, will that mean that emilio yap will control piatco. i hope he could negotiate a new contract at the soonest possible time with the government, settle all important issues construction, legal , financial with the other shareholders of piatco, the government and takenaka so this facility will finally be open this year

^WOW! Really good news. That is very detailed @bustero.
Can we open the champagne now?

Fraport only owns 30% of Piatco, but most of the debt. Pair-Pags owns the rest. But the big deal is that the German's are out hence the government will have an easier time talking with someone like Emilion Yap and if they want to screw the chengs which is what they wanted to do before, much easier now as the chengs are not in bed with the EU's largest country anymore.PAir-Pags has a right of first refulsal on the shares but will probably not be able to top up. E,ilio Yap will probably be happy to receive the 300 milllion , he make money on his 200 million investment, get most of the debt as a first in line creditor and good bye equity of partners which is where most of pair-pags money is . With this scenario look for not much noise when the government wants to open the airport.

emilio yap is really a rare kind of filipino, i really admire him for his being patriotic and philatrophist as he is he never failed to share his wealth with the people, thanks god there is a filipino businessmen who has never stop in his effort to restore confidence in our country and help build our economy and society, btw he owns manila bulletin and manila hotel, now hes going to own the terminal its good to know that the terminal will be in good hands

sana he puts up his own airline flying A380's and Embraer E-190's, para makatikim tayo. oops sama na rin ang dreamliner :)

Anyway hope they make the december deadline and BUILD THAT UNDEGROUND LINK TO CENTENIAL 2 AND THE CARGO TERMINAL , of course complete with a magleve people mover,

mayaman naman siya , matanda pa, di niya madadala iyan kaya bigay na niya sa taong bayan

Fraport Accepts $200 Million Offer for Manila Stake

Aug. 26 (Bloomberg) -- Fraport AG, the operator of Europe's second-biggest airport, said it accepted an offer from an unidentified Philippine company for its stake in the international terminal in Manila for $200 million. The shares rose the most in more than a year.

Fraport will receive $50 million immediately upon signing the accord and the rest within six months, the Frankfurt-based company said in a stock exchange filing today. The transaction will probably be signed in the next few days, said Klaus Busch, a spokesman, declining to name the buyer.

Fraport started arbitration proceedings against the Philippines at the World Bank in 2003, asking for $425 million after authorities voided its contract to build and operate the terminal at Ninoy Aquino International Airport. Fraport, which owns Frankfurt Airport, spent $379 million on the Manila venture and wrote down 293 million euros ($361 million) of the investment against 2002 earnings because of the dispute.

"This is perfect, what they've done'' in achieving a sale, said Per-Ola Hellgren, an analyst at Landesbank Rheinland-Pfalz in Mainz, Germany, who is reviewing his "underperform'' rating on Fraport for a possible upgrade. "It could've taken forever to get something out of these people, and it ties up management power to have this outstanding.''

Shares of Fraport rose as much as 1.40 euros, or 3.9 percent, to 37.70 euros in the biggest jump since July 1, 2004, and were up 0.9 percent at 36.61 euros as of 3:41 p.m. in Frankfurt. The stock has risen 17 percent this year, valuing the company at 3.33 billion euros.

The Philippine company's offer is less than half what Fraport is claiming at the World Bank, "but this is at least certain,'' Fraport's Busch said. "It's better than spending years before various courts and paying all the legal fees and still only having a 50-50 chance of getting a payment.''

Philippine International Air Terminals Co., owned by Fraport and a local company, won the contract to build and operate the terminal in 1997. President Gloria Arroyo's government questioned the project in 2002 and the Philippine Supreme Court voided it in 2003, saying some terms were changed illegally. The government seized control of the terminal in December and plans to open it later this year.

"They've learned a lesson there,'' Hellgren said. "The next time around, they'll be more careful about what they sign and what services they agree to provide under what circumstances.''

Fraport's drive to expand overseas through management contracts at airports rather than financial investment is "a very sound strategy, and that's come out of this whole episode,'' Hellgren said.

The company owns or has stakes in four German airfields as well as airports in Antalya, Turkey, and Lima. It also has management and consulting contracts for other airports, including those in Shanghai and Cairo, and is bidding to operate airports in Hungary, India and Bulgaria.

The company, with partner Deutsche Bank AG, was among five bidders shortlisted today by the Hungarian government to make final offers of at least 390 billion forint ($2 billion) to run Budapest Airport Rt. for 75 years.

Emilio Yap owns THE Manila Hotel, right? As much as I'm thrilled about this news, if Emilio Yap had $200 million lying around, it would've been better spent sprucing up the Manila Hotel...

That aside, this is weird news. I wonder WHY anyone would want to buy a stake in PIATCO. PIATCO is poised to get little or nothing, even if arbitration works in their favor. I'd love to believe that this purchase was out of sheer patriotism, but that notion is just as far-fetched as an actual conspiracy theory...

We have yet to see the statements that'll come from this. The only sure good news that we have is that Fraport will no longer pursue compensation from our government, so that's one arbitration case that we won't have to worry about.

Fraport-Manila Hotel deal leaves Palace clueless
By Marichu Villanueva
The Philippine Star 08/28/2005

Malacañang officials were taken by surprise yesterday by the planned buyout of a German firm’s stake in the consortium that built the new but mothballed Ninoy Aquino International Airport Terminal 3 (NAIA-3) by a newspaper and hotel magnate who owns the Manila Hotel.

Frankfurt airport operator Fraport AG has accepted an offer of $200 million for its stake in Philippine International Air Terminal Co. (Piatco) in a move that could end its dispute with local partners in Piatco and the government, with which Piatco is engaged in a legal tug-of-war over the new NAIA-3.

Fraport said in a statement that it would receive an initial sum of $50 million once it signs the deal, followed by the remaining $150 million within six months of signing.

The sale still needs to be approved by Fraport’s supervisory board, wire news agency Reuters reported.

Fraport does not plan to pursue compensation following the sale of its 30-percent stake in Piatco to Manila Hotel Corp., a source familiar with the matter told Reuters.

Fraport had sought World Bank arbitration to settle a dispute over compensation for the terminal after it was seized by the government in December for alleged anomalies in Piatco’s contract for the terminal. The government had rejected Fraport’s request for $425 million in compensation. Fraport put up most of the money — about $300 million — for the terminal’s construction.

Manila Hotel Corp. is owned by Manila Bulletin publisher Emilio Yap.

Aside from the publishing business, Yap’s business interests include shipping and banking. Yap acquired the five-star Manila Hotel when his company outbid a Malaysian consortium.

Executive Secretary Eduardo Ermita, head of a Cabinet policy group tasked by President Arroyo to handle the NAIA-3 project, expressed surprise over the reported buyout.

"I should know about this because I am the chairman of the policy group. But I had no knowledge of that until this report," Ermita said. "We’re talking every week. We meet every week but we did not have any information about such negotiations."

The STAR sought comment from former interior secretary Jose Lina Jr., who is now the president of the Manila Hotel Corp., but he refused to answer phone calls.

Ermita said he is skeptical of the buyout deal because Yap is not on good terms with beer and tobacco magnate Lucio Tan, who controls Philippine Airlines. "Don Emilio and Lucio Tan are not exactly on good terms. So there is something to this."

However, the Yap-Tan animosity took a new twist after Manila Bulletin published for the first time last Saturday two stories in its business section about Tan’s acquisition of the government’s stake in Philippine National Bank and the side of Tan’s lawyer’s defense on his tax evasion case.

Ermita also doubted the veracity of these reports, which he suspects might be part of a propaganda ploy.

"There are ongoing litigations as far as the NAIA-3 is concerned, and I cannot imagine Fraport, which is just a member of the Piatco consortium, can go into these transactions," Ermita said.

The pending litigation includes petitions filed by Piatco and Fraport before the Supreme Court, contesting the government’s seizure of the new airport terminal.

On top of these, the Philippine government is facing two cases filed by Piatco and Fraport in separate international arbitration panels.

"There are a lot of these cases. So it is not easy to say there is a deal and only $200 million will be paid to them when they’re talking about $300 to $400 million compensation to the consortium," Ermita said.

Ermita pointed out that Fraport is a minority stakeholder in Piatco. "At the very least, Piatco might seek a temporary restraining order to stop Fraport from doing this because the German firm is only a partner of the consortium."

The new airport terminal was completed in 2002 but its opening was delayed by a squabble between Piatco and Fraport AG.

Fraport was further caught in the middle that same year when Mrs. 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 had been signed.

Fraport then warned it might sue the Philippine government for damages if the company’s interests were not protected.

In 2003, the Supreme Court nullified the contract, saying Piatco was not qualified to bid on the project.

That prompted the government to seek court permission to take over the terminal.

A Pasay regional trial court issued a writ of possession to the government last December for the takeover of NAIA-3. The court also ordered the payment of initial just compensation amounting to $62.3 million to Piatco.

Government lawyers appealed the court’s order and even asked presiding Pasay City judge Henrick Gingoyon to inhibit himself from the case. But the judge held on to the case, prompting the lawyers to raise the appeal to the Supreme Court.

On Jan. 14, the High Tribunal issued a temporary restraining order (TRO) on the lower court’s decision requiring the government to pay the amount.

Aside from Piatco’s legal challenge in the Supreme Court, the government is also facing two arbitration cases in separate international courts. Piatco filed a $900-million case against the government with the International Chamber of Commerce in Singapore.

Fraport also filed a $900-million suit against the government with the International Center for Settlement of Investment Disputes in Washington DC.

The government is presently trying to open the airport terminal by November, after it failed to meet its self-imposed deadline of June.

The Manila International Airport authority has signed two out-of-court agreements with Japanese construction firm Takenaka Corporation, a Piatco subcontractor, in line with efforts to open the facility.

But Piatco said the government could not do this because it was the consortium that built the terminal.

So what exactly will Emilio Yap's buyout of Fraport's stake do for the opening of the terminal?

http://news.inq7.net/nation/index.php?index=1&story_id=48324

Arroyo crisis helped Fraport sell stake in Piatco—lawyer
First posted 01:08am (Mla time) Aug 28, 2005
By Clarissa Batino
Inquirer News Service

Editor's Note: Published on page A1 of the August 28, 2005 issue of the Philippine Daily Inquirer

THE WANING credibility of President Macapagal-Arroyo was instrumental in the sale of Fraport AG's stake in the Philippine International Air Terminals Co. Inc. consortium and is boosting million-dollar arbitration cases filed against the government, according to a legal consultant of Piatco.

Liwayway Vinzons-Chato, a lawyer for Piatco which built and was supposed to operate the Ninoy Aquino International Airport Terminal 3, said a stake in Piatco had thus become attractive once again to investors like Emilio Yap's Manila Hotel Corp.

The Manila Hotel acquired Fraport's stake in the Piatco consortium for $200 million. Under the deal, the Manila Hotel would initially pay Fraport $50 million with the remaining $150 million to be paid within six months from the signing.

"These allegations of anomalies against the President are helping the arbitration cases. It shows that Piatco was one of those that was affected," said Chato in an interview.

Given uncertainties as to whether Ms Arroyo could finish her term, the Chinese-Filipino businessman could be betting on a scenario where a new administration would undo the Supreme Court's decision, she added.

Ms Arroyo is facing impeachment for allegedly rigging the results of the 2004 elections, among others. The Naia Terminal 3 project was one of the controversial contracts cited in the impeachment complaint filed against the President.

Piatco's contract with the government was nullified by the Supreme Court in May 2003. In August of the same year, Fraport filed an arbitration case with the World Bank's International Center for Settlement of Investment Disputes and sought reimbursement of its $425 million investment in Naia Terminal 3.

Chato said there had been indications that the arbitration courts would rule in favor of the private firm.

Good investment

"Buying Fraport's stake for $200 million is a good investment. Mr. Yap is an astute businessman, maybe he knows where the arbitration case is going," she said.

In a statement, German airport operator Fraport said it had accepted the offer of the Manila Hotel to buy its stake in Piatco for $200 million.

The German firm did not say whether it sold all its stake in the joint venture with Filipino investors led by the Cheng family, which, if computed would amount to about 80 percent of Piatco although its direct equity was only 30 percent.

Of the 60 percent stake in Piatco controlled by Filipino investors, the German firm still has a substantial stake. Ten percent of Piatco is owned by Nissho Iwai Corp. of Japan.

It did not also say whether the sale would put an end to its arbitration case before the World Bank court in Washington.

A source revealed that the deal between Fraport and Manila Hotel was clinched in a meeting four days ago.

The Romulo Mabanta Law Office acted as counsel for the Manila Hotel on the transaction with Fraport, according to Chato.

Yap, who is also into publishing and banking, bought Fraport's stake for less than half of what Fraport was seeking in compensation.

There were rumors that Fraport was able to collect an unspecified amount in insurance for its failed investment in Naia 3, which was why it agreed to sell to Yap for less than half of the $425 million it had invested.

This amount comprised 80 percent of the $525 million that Piatco had filed for arbitration before a Singapore court in February 2003.

"My kudos to Mr. Yap because this move shows foreign investors that there are still local investors who believe in the project. It shows the project is worth fighting for," said Chato.

Lucio Tan factor

Other sources, however, said that Yap's move was done out of spite. The businessman is reportedly not in good terms with taipan Lucio Tan who owns Philippine Airlines.

But Chato said the Tan factor may only be incidental to Yap. "Will you spend $200 million just because you have a fight with somebody."

But there are sources who suspect that Yap could just be fronting for other interests, including the government, especially if part of the agreement in the sale would be to withdraw the arbitration case.

Other interested parties

"We cannot discount the possibility that Yap is just fronting for somebody. There are many parties interested in Naia 3 up to now," said a source familiar with the Naia 3 project.

Asia's Emerging Dragons Corp., the joint venture of six taipans who proposed to construct the Naia 3 project in 1993 under a build-operate-transfer scheme, had apparently not lost interest.

But AEDC now is mostly associated with Tan's PAL, according to sources.

The other taipans like Henry Sy, John Gokongwei, Alfonso Yuchengco, Andrew Gotianun and George Ty appear to have backed out.

AEDC failed to bag the project in 1996 after its offer was matched by the consortium of PairCargo and its partner Fraport which eventually formed the Piatco consortium.

For a time, even Enrique Razon, owner of International Container Terminal Services Inc. and an ally of Ms Arroyo, was rumored to want to get into Piatco, a source said.

After its investment in Naia 3 turned sour, Fraport became disgusted with the Philippines. The German firm opted to write off its investment in Naia 3 in March 2003 due to the controversy.

The government, it said, never offered just compensation even after it took over the airport facility last December.

The government took over the terminal after the Pasay Regional Trial Court granted its petition to expropriate Naia 3 and offered a P3 billion ($53.57 million) downpayment to Piatco as compensation.

Fraport described the takeover as "another in a series of unlawful acts by the Philippines."

In January 2005, the Pasig RTC ordered the government, specifically the Land Bank of the Philippines-Baclaran branch, to immediately release the amount of $62.34 million to Piatco as partial payment. But this was stopped by the Supreme Court.

When will it open?

When it took over the facility last December, the Arroyo administration promised to open the airport in June. The timetable has since been moved and now, nobody can say exactly when it would finally open.

An understanding with Japanese firm Takenaka Corp. to finish loose ends in Naia 3 was supposed to have been clinched in June but has not been signed up to now.

The new terminal was built to replace Naia 1, which is more than two decades old. Naia Terminal 3 is designed to handle 28 aircraft at once and 13 million passengers a year.

^^ thats so sad, its like comparing to owing a building except its an airport let alone owning the NAIA terminal 3. how bout the other two, is the govn gonna sell them too. what a corporate world :down: btw, i have more hopes rather than our govn so its :okay: just open that damn airport for godsake :gaah:

hi everyone,
i was out of town a couple of days, now that sounds like good news. i will see what i can find out about it here in germany and post whatever i can find ! just give me a couple of days,
rds from germany.
philpal

SAYANG, the opening of NAIA 3 could have brought more tourists in RP

the only question i want answered is when will the terminal open??? i hope that mr yap would open it by november as the government previously stated in the news..

ei look at what i found!!! taken from mb.com.ph... should have known to check with the manila bulletin to see the answers!!! hahaha.. mr yap you are a Godsend!!

The true story of Manila Hotel’s purchase of NAIA-3 shares from Fraport, Sojitz, and SB Airport

The Manila Hotel aims to help resolve the Ninoy Aquino International Airport International Passenger Terminal 3 (NAIA IPT 3) conflict and to put the state-of-the-art worldclass airport into operation as soon as possible to enable the international airlines and the traveling public to avail of and enjoy NAIA IPT 3 facility.

This state-of-the-art world-class facility will also enable the public, specially our countrymen, to send-off and welcome their loved ones and friends in comfortable surroundings inside the terminal 3 instead of waiting outside the terminal under the sun and rain.

The opening of NAIA IPT-3 will provide needed employment opportunities, promote the Philippine tourism industry, enhance the investment climate, and boost the image and credibility of the Philippine government and Filipino people before the local as well as political and business community all over the world, considering that this worldclass airport project is internationally known and ready for opening to serve international airlines and travelers.

Manila Hotel would like to contribute its share to assist the government in reducing its deficit by minimizing the burden of incurring additional loans and paying additional interest, if it acquires the private property of NAIA IPT 3 through expropriation, while the government is disposing of its properties to private entities as a way of raising additional revenues to finance its deficit.

For all the foregoing considerations, Manila Hotel, for its own account, has recently concluded the purchase of the equity stake in PIATCO held by SB Airport Investments, Inc. and Sojitz Corporation of Japan for a total amount of US$30 million, and has entered into an agreement on August 26, 2005 with Fraport AG Frankfurt Airport Services Worldwide ("Fraport") for the purchase of its entire equity shareholdings in PIATCO, including all its other rights and interests in its related companies, for a total amount of US$200 million to be financed by foreign financial institutions.

Manila Hotel expresses its appreciation to the three corporations for choosing Manila Hotel as the buyer of their shares and for the cordial and expeditious manner by which the transactions with them were concluded.

As a consequence thereof, Filipino stockholders will own and control 100 percent equity of PIATCO, the entity which started the construction of NAIA IPT 3 on June 15, 2000 and completed the same on December 15, 2002, as per Concession Agreement dated July 12, 1997.

The Manila Hotel is partly owned by the Government Service Insurance System (GSIS) where all government officials and employees are members, who indirectly have an interest in the Manila Hotel which presently has equity in PIATCO.

To eliminate lengthy and unnecessary litigation and arbitration prejudicial to the image and interest of all parties concerned, upon conclusion of the purchase of Fraport’s share, Fraport and PIATCO including its stockholders will cause the mutual withdrawal and dismissal of all civil and criminal cases pending here and abroad for the sake of unity, cordial relationship, and economic prosperity.

Manila Hotel is appealing to all peace-loving Filipinos to pray for and to support the early opening and success of NIA-3 for the prestige and benefit of our country and people.

MANILA HOTEL CORPORATION

By:

(Sgd.) JOSE D. LINA JR.

(President)

Palace determined to open NAIA-3 as soon as possible

Malacañang reiterated yesterday its determination to open and start as soon as possible the operation of the controversial Ninoy Aquino International Airport (NAIA) Passenger Terminal 3 that has been delayed by pending court litigation.

Press Secretary Ignacio Bunye issued the statement even as he remained clueless on whether the Arroyo administration will honor the reported buyout deal entered into between the Manila Hotel Corp. and the Frankfurt Airport Service Worldwide (Fraport).

"What is only important is the determination of the government that this Terminal 3 that has long been mothballed be opened immediately," he said in a radio interview, adding that its opening will be for the best interest of the country.

Political pundits believe that the buyout by the Manila Hotel Corp. of Fraport’s stakes in the NAIA 3 project will end the long-standing dispute between the government and Fraport’s local partner, the Philippine International Air Terminals Co. (PIATCO).

Cabinet Secretary Ricardo Saludo, in a telephone interview, said that since the buyout deal is purely a private transaction between the owners of the Manila Hotel Corp. and the Fraport, the government does not have a choice but to honor it.

"It is a private transaction. So we do not wish to interfere," he said. (Ferdie J. Maglalang)

^^ that's great news!!!

So what exactly will Emilio Yap's buyout of Fraport's stake do for the opening of the terminal?
By having a friendly party owe the greater amount of the compensation, it's easier for the government to make a deal. For example, Piatco is asking for 450 million in compensation. The Philippine Government in the meantime has offered Php 300million. The idifference is in arbitration right now. With Yap buying the bigger share of the compensation (the germans are taking a discount from 350million), theoretically the 100 million of Pags-Pair and 200million of yap are now within reach of the 300 million offer, making it easier to agree to. Should Piatco get more than 300 million or if he makes representations to Pair-Pags that he will fix the problem with GMA then he stands to make a fair amount of money in a short amount of time.
Additionally should the government open the terminal this Dec. There is very little likelihood of a TRO from a friendly party. Yap is a political player, as the owner of one of the largest media companies in the Philippines he is also one of hte most powerful. Politicians go to him not the other way around. He's also quite apolitical in the sense that he tends to shy away from controversies and always supports the government. There is definitely behind the scenes politics behind him. Just look at who his GM is to get a good idea.

As per article belwo the timetable is still intact. Though our credibility with german investors proabably isn't.

Vol. XIX, No. 24
Monday, August 29, 2005 | MANILA, PHILIPPINES
Today’s Headlines

Yap move latest twist in NAIA-3 controversy

The long-drawn out dispute over the Ninoy Aquino International Airport Terminal-3 (NAIA-3) has taken a new twist, with the government possibly ending up with hotel and newspaper magnate Emilio Yap as its partner in operating the facility.

News broke out at the weekend that Mr. Yap will be shelling out $200 million for the 30% stake of German airport operator Fraport AG in Philippine International Air Terminal Co. (Piatco), the consortium that built NAIA-3.

The facility was seized by the government late last year in one of the sudden turns the airport terminal controversy has been known for.

CHANGED COMPLEXION

"This buyout [has] totally changed the complexion of our negotiation with all the stakeholders of Piatco," an airport official who requested anonymity said.

"Local companies traditionally would insist that they play active roles in operating properties of government, as had been the case of Lucio Tan in PNB (Philippine National Bank) and PAL (Philippine Airlines). We think Yap will be treading on a similar path," the official added.

Mr. Yap owns the national broadsheet Manila Bulletin, a listed company, and Manila Hotel Corp., which operates the nation’s oldest hotel. The latter firm was said to have bought the Fraport stake in Piatco.

Confirmation of the deal from his camp had yet to be issued as of press time yesterday. Officials of Manila Hotel Corp. remained unavailable for comment.

TAN INVOLVEMENT

Mr. Tan has also been dragged into the issue, with observers citing a supposed feud with Mr. Yap. Mr. Tan was also involved in Asia Emerging Dragons Corp., a consortium of taipans which lost the bid to build NAIA-3.

Malacañang yesterday remained mum on the issue, although Executive Secretary Eduardo Ermita told a newspaper that he had no knowledge of the deal despite heading a Malacañang policy group tasked with compensation talks.

He also cited the Tan angle, and raised the possibility that Fraport’s partners in Piatco could oppose the deal.

Palace sources said Mr. Ermita will be meeting with the NAIA-3 policy group, composed of Finance Secretary Margarito Teves, Trade and Industry Secretary Peter Favila, Transportation and Communications Secretary Leandro Mendoza, Chief Presidential Legal Counsel Mercidatas Guiterrez, and Solicitor General Alfredo Benipayo, tomorrow. Up for discussion is the impact of the Fraport stake sale on the government’s claim to NAIA-3.

ADVANTAGEOUS TO GOV’T?

But Albay Rep. Joey Salceda, an economic adviser of the President, yesterday called the stake sale advantageous to the government, saying Mr. Yap would be an easier person to talk to with respect to operating NAIA-3.

He also included the Tan issue, saying that for NAIA-3 to be profitable, PAL has to be there as an "anchor tenant". Mr. Salceda did not elaborate. PAL already has the exclusive use of Terminal 2 for both its domestic and international operations.

Fraport and Piatco have been asking the government to compensate investments made since the NAIA-3 contract was awarded in 1996. Allegations of a flawed deal led to the Supreme Court’s voiding the contract in 2003.

The dispute has been marked by infighting within Piatco, lawsuits filed in local and international courts, and last year’s expropriation, but compensation talks have continued at both formal and informal levels.

COMPENSATION DEMAND

Fraport is demanding $425 million in compensation, but the government is only willing to pay $300 million. Government sources said the gap had pushed the parties to pursue out-of-court negotiations. As of last week, the parties had reportedly agreed in principle to peg compensation at a "discounted" amount provided that payments are made "outright", the sources said.

The government’s hands, however, are tied since floating bonds or borrowing money from international financial institutions will add to a ballooning deficit.

It had earlier proposed financing measures including the entry of new investors. Early this year, the Manila International Airport Authority said it was looking at issuing $300 million in bonds to compensate Piatco. The plan was later shelved given the state’s financial situation and concerns over the required government guarantees.

With the reported entry of Mr. Yap, sources said a "logical" options for the state to take is to consider Manila Hotel Corp. a possible partner in operating NAIA-3 provided the company meets the government’s procurement procedure regulations.

Long-term revenues from operations will be used to compensate the NAIA-3 developers, eliminating the burden of having to raise the money outright and allowing the airport terminal to be go on full operation by the first quarter of 2006.

Fraport has said it has received $50 million out of the $200 million purchase price and expects to be paid the remainder in the next six months.

TIMETABLE STILL INTACT

Sources said that Mr. Yap’s reported buyout of Fraport shares will not affect the timetable of NAIA-3 soft launch by yearend and full operations in March 2006. The government has missed its earlier goal of opening the terminal in June of this year.

"The multinationals [Fraport and Piatco] did not want to have a hand in the terminal operations for some internal reasons. If reports of the buyout were true, then we are pretty sure that Yap, in exchange for his condition that Fraport stops [pursuing] compensation ... with government, would want to have an upper hand by operating NAIA-3," another industry source said.

"The chances of government favoring Yap are 60:40. The Yap group, we expect, will have an internal rate of return of 17% in the operations. That will be acceptable since that is about the prevailing standard in the industry. Also, we will cut down on our legal fees," he noted.

Press reports say that Mr. Yap bought Fraport shares on the condition that the latter withdraws its compensation case against government. Fraport has sought World Bank arbitration to settle the dispute with the Philippine government.

It has also filed a $900-million lawsuit against the government before the International Center for Settlement of Investment Disputes in Washington, D.C.

Sources also said the government has already paid some $18 million in fees to Washington-based lawyers who represent the Philippines in the international suits filed by Fraport and Piatco. -- reports by Kerlyn G. Bautista and Judy T. Gulane

Sources also said the government has already paid some $18 million in fees to Washington-based lawyers who represent the Philippines in the international suits filed by Fraport and Piatco. -- reports by Kerlyn G. Bautista and Judy T. Gulane

the govn had screwed up again ofcurs, this cudnt been used to invest for mr. yap behalf. so sad they didnt start askin the corporate philippines, 18 million dollar was waisted on those vulture lawyers in state w/c is the masses tax money.:gaah:

we should thank mr yap for thinking abt the welfare of our country when he agreed to buy those shares of fraport and other two foreign companies in pitaco. since he bought those shares on the condition that fraport will stop seeking compensation from the government, then mr yap should now convince the other shareholdres in pitaco to come on baord with him, stop all lawsuits, negotiate a new contract with the government and other entities involved in this project so that the world class terminal can finally open before this years christmas holidays!!!

The best news so far that ever happened to NAIA-3.


So, technically by the year ends we will be having the Emilio Yap International Airport (NAIA-3) competing with Lucio Tan International Airport (NAIA-2) with the Pinoy International Airport (NAIA-1) in between.

so we could all speculate that PAL (Lucio Tan) moving into NAIA-3 (Emilio Yap) won't be happening... :)) given the apparent rivalry of the two...

OR, we could have a scenario where PAL is forced to divide its domestic-international services between T2 and T3...

The best news so far that ever happened to NAIA-3.


So, technically by the year ends we will be having the Emilio Yap International Airport (NAIA-3) competing with Lucio Tan International Airport (NAIA-2) with the Pinoy International Airport (NAIA-1) in between.

:laugh: :laugh: :laugh: :laugh:

This is funny.....

OR, we could have a scenario where PAL is forced to divide its domestic-international services between T2 and T3...

specially without the transfer facilities (tunnel, monorail & access road) in place...

so we're looking at three scenarios:

A - PAL moves everything to NAIA-3 (as it previously requested) for an integrated international-domestic operations... but with Emilio Yap at the helm of NAIA-3, hmmm... (NAIA-2 becomes domestic terminal of other airlines)

B - PAL only moves international operations to NAIA-3, with NAIA-2 handling all domestic flights, including PAL... but here, we desperately need the "transfer" facilities, such as the tunnel/monorail or at least the access road

C - PAL stays at NAIA-2... with other international flights at NAIA-3 and other domestic flights at either NAIA-1 or the old domestic terminal

analyzing the 3 scenarios,
A is beneficial to all in terms of terminal building, but other domestic carriers are at a loss without "transfer" facilities to NAIA-2,
B is a logistical nightmare with regards to intl-domestic transfers, but the transfer facilities, if built, will be beneficial, not only to PAL but to everyone
C is "status quo"... PAL integrated in the cramped NAIA-2 (which they plan to expand if PAL doesn't move to NAIA-3... other international carriers with a new terminal, but other domestic carriers are stuck with the old domestic terminal as a worst case scenario

Fraport’s $230-M stakes in PIATCO sold to Manila Hotel

The purchase by the Manila Hotel of the $230-million (P12.65-billion) equity stakes f the Fraport AG in the Philippine International Airport Terminal Co. Inc. (PIATCO) and two other shareholders paves the way for the early opening of the long-mothballed Terminal 3 of the Ninoy Aquino International Airport.

Airport consultant Tirso Serrano on Monday told The Manila Times that with the resolution of the legal problems hounding NAIA 3, the technical aspects of the facility, including the participation of Japanese contractor Takenaka Corp. in assessing the structural stability and different systems of the terminal, will be taken up.

In a statement published in the Manila Bulletin owned by Emilio Yap, Joey Lina Jr., president of the Manila Hotel Corp., said the corporation bought the $30-million equity stake of SB Airport Investments Inc. and Sojitz Corp. of Japan, and $200-million equity shareholdings in PIATCO, including all rights and interests in its related companies.

Lina announced that with the sale, Fraport and PIATCO will withdraw all civil and criminal cases pending in the country and abroad "for the sake of unity, cordial relationship and economic prosperity."

The lawyer Liwayway Vinzons-Chato, spokesperson of the Cheng family which controls PIATCO, said she was not privy to the deal between Fraport and Manila Hotel.

Chato said she had not heard from the Cheng family if it would withdraw the arbitration case it had filed against the government for claims of just compensation as announced by Lina.

Officials of the Manila International Airport Authority will meet today with the government’s policy group headed by Executive Secretary Eduardo Ermita to discuss the opening of NAIA 3.

On its website, Fraport AG confirmed that it had accepted Manila Hotel’s offer on August 26 to purchase its shares in PIATCO and joint-venture companies PTI, PTH and PAGS for $200 million.

"A corresponding shareholding-purchase contract now has to be negotiated and completed within 15 working days," Fraport AG said.

The amount will be paid in two installments—$50 million shortly after the contract has been signed and the remaining $150 million within six months of the contract signing. The transfer of Fraport’s shares will be effected once the whole amount is paid.

Fraport said the transaction will be presented to its supervisory board for approval.

"Furthermore, the other joint-venture shareholders have to relinquish their buy-first option," the company said.

Fraport said the sale will achieve "a pragmatically acceptable exit [of Fraport] from Manila."

Legal issues and threats have been hounding the NAIA 3 opening since the government took over the facility in December 2004.

The legal threats have prevented Takenaka from signing a contract with MIAA to finish the airport and assess its structural integrity. Takenaka holds the operational codes needed to run different systems at the new facility.

Airlines have also demanded a formal contract from MIAA for their transfer to NAIA 3, but MIAA was only able to offer a reservation agreement. Only four airlines had signed the agreement.

These threats caused the delay of the NAIA 3 opening in June, which was reset to December. Even if the legal issues are resolved, it appears that the December opening would not push through, owing to the lack of time within which the airlines will construct their offices and lounges at the airport.

On January 19, the Board of Airline Representatives and the Airline Operators Council told Alfonso Cusi, airport general manager, that airline members needed a minimum lead time of six months from the time the lease contracts are signed within which to transfer.

During the lead time, the airlines would have to build airline counters and lounges at NAIA 3 and train ground handlers and service providers.

Felix Cruz, board chair, told Cusi that "The airlines need at least six months to design, bid, construct and furnish our offices/lounges and also to install and test the necessary communication equipment."

They were demanding that MIAA issue a certificate of completion of NAIA 3 before they could start constructing offices.

The airlines enumerated 30 minimum operating requirements, including facilities and systems that MIAA should be able to provide them at NAIA 3.

The expropriation case involving the NAIA 3 is pending with the Supreme Court, which issued a restraining order against a ruling of a Pasay court judge, directing the government to pay PIATCO "just compensation" after the takeover.

MALAYA.COM (http://www.malaya.com.ph/aug30/news2.htm) (The anti-Arroyo, Pro Estrada Newspaper of the Philippines)

Another Piatco anomaly

--------------------------------------------------------------------------

THE owners of Manila Hotel might have been misled into taking over the uncompleted Terminal III supposed to have been built by the Philippine International Air Transport Co. and its German partner, Fraport AG of Germany.

The Office of the President is scheduled to finalize today a compromise agreement with Piatco.

It does not look proper that after the Supreme Court declared void ab initio the contract between Piatco and the Department of Transportation and Communication and after the state confiscated the facilities, the government would enter into a compromise agreement with the group that drew up a contract later voided by the Supreme Court.

On the part of Manila Hotel, it is presumed that taking over Terminal III includes the franchise without which the terminal cannot be operated.

By the admission of its own lawyers, Fraport had increased its equity from 30 to 60.4 percent after buying into the companies owned by the family of Cheng Yong, which are also stockholders of Piatco.

There is a complaint for anti-dummying against officials of Fraport and Piatco. Will the proposed takeover by Manila Hotel obliterate or erase this violation of the Constitution?

If it does, Fraport will enjoy the best of both worlds. It gets back $200 million of its $400 million investment written off as a loss as early as 2003 and avoids the possibility of imprisonment of its officials and that of Piatco for violation of the anti-dummy law.

After the government expropriated Terminal III, it proposed to complete the project for an additional expense of around $100 million and bid it out to the private sector.

The compromise agreement to be signed in Malacañang today is clearly another violation of the requirement of public bidding in the sale or operation of government assets.

Manila Hotel may argue that it is spending around $350 million to buy out the investors of Piatco and run the terminal, without finding out who may have the best offer in a public bidding. It is, in other words, a negotiated contract.

Manila Hotel or any some such company has the perfect right to buy the shares of Piatco. That purchase does not involve government sanction.

However, it leaves a bad taste in the mouth when the state allows a violation of the Constitution to be erased by the simple act of selling the enterprise which is the subject of that violation.

On the surface, Manila Hotel has an unquestionable motive in operating the airport. The hotel is a logical partner of an airport in attracting tourists. In turn, it can contribute to the promotion of tourism which will help shore up the budgetary deficit.

The other question here is whether the owners of Manila Hotel have paid for the loan that it got from the GSIS to pay for its 40 percent stake in the hotel. Here we have a case where a group buys into a hotel and borrowed money from the owner to pay for the purchase of the equity.

If the loan from the GSIS has not been paid by Manila Hotel, we have here a case where a borrower in arrears is getting another favor from the government.

As if to spite government and in an effort to recover large sums of money, Piatco filed an arbitration case with the International Chamber of Commerce in Singapore.

Fraport, on the other hand, filed its case – also for recovery of sums of money – with the International Center for the Settlement of Investment Disputes in Washington DC.

Piatco filed an arbitration case after spending an estimated $900 million on a contract with a value of only $350 million.

Fraport, on the other hand, went to ICSID because it claims it did not get fair treatment when the Supreme Court cancelled the Piatco contract. The officials of Fraport were thoroughly briefed on what their company was getting into, including the possible violation of the Constitution which limits foreign investments in public utilities to 40 percent.

The lawyer-PR consultant of Piatco was earlier reported to be seeking about $900 million in compensation as a result of the expropriation of Terminal III by the government.

The government has a counterclaim of nearly the same amount.

Buying the shares of the investors in Piatco is one thing. Operating the terminal is quite another because of the counterclaim.

If the sale is finalized, the government drops its claims and so would Piatco and Fraport.

A team has been formed to look into how much in compensation can be justly given by government to Piatco.

Of course, the government has a counter-claim close to the amount allegedly spent by Piatco on the unfinished terminal.

In other words, Manila Hotel can claim it is doing a patriotic act by buying the equity of the family of Cheng Yong instead of the government paying compensation.

But that doesn’t seem to be the point.

The announcement made by Manila Hotel did not mention who will complete the supposedly world-class terminal. Neither did it say when the hotel will start operating it.

The fact of Terminal III being expropriated by government means that the state becomes the owner of the facility.

There might be something amiss in the purchase of the terminal by Manila Hotel via the shares of all the investors of a company whose contract has been voided by the Supreme Court.

It has been reported that a memorandum of understanding has been reached between the hotel and Fraport where the Germany company is to be paid $200 million which was already written off as a loss.

Since the shares of the Cheng Yong family are also included in the sale, the respective arbitration cases of Fraport with ICSID and of Piatco with the ICC are deemed withdrawn.

It is not easy to understand why the partners in the construction of the uncompleted terminal would withdraw their suits and settle for amounts very much less than their claims.

The background of the partners is irrelevant to the necessity of calling for a public bidding before the terminal could be awarded to anyone, including the Manila Hotel.

The Senate Blue Ribbon committee turned Piatco inside out in a public hearing.

Now, its chairman, Joker P. Arroyo, might have another thing coming. This time, the committee should investigate why Terminal lII will be operated by Manila Hotel without the benefit of public bidding.

ooooo.. its beginning to look like we would finally see the light at the end of a very very long tunnel.. taken from philstar.com

New Piatco owner in talks with government
By Marichu Villanueva
The Philippine Star 08/30/2005

After undergoing a management shakeup, the consortium that built the new Ninoy Aquino International Airport Terminal 3 (NAIA-3) began talks yesterday with the government to settle a drawn-out legal battle over the mothballed facility and expedite government efforts to open it for operations.

Jose Lina Jr., President Arroyo’s former interior secretary and now president of Manila Hotel Corp., met with Executive Secretary Eduardo Ermita about the government’s plan to have the facility up and running by November.

Manila Hotel Corp., which owns the five-star Manila Hotel, gained control of Philippine International Air Terminals Co. Inc. after buying the equity stake of three firms in Piatco, including that of Piatco’s German partner, Fraport AG.

Under the previous management, Piatco was opposed to the government’s efforts to open the facility.

The consortium has been locked in a legal dispute with the government since 2002 after Mrs. Arroyo abandoned Piatco’s contract to build and operate the terminal because of alleged one-sided provisions.

Last December, the government seized the terminal after the Supreme Court sided with the government and is now preparing to open the facility by November. Piatco has contested the Supreme Court ruling and the government seizure.

Lina said they will "try our best to talk with all parties concerned, including the government, so that we can open NAIA-3 even much earlier than that."

"We can discuss what can be done with the objective of using these facilities which will be for the good of everyone," he explained.

Talks with the government will include the legal battle over the terminal. Aside from the legal tussle before the Supreme Court, the government is facing a suit filed by Piatco before an international arbitration panel in Singapore and another by Fraport in the United States.

"To eliminate lengthy and unnecessary litigation and arbitration prejudicial to the image and interest of all parties concerned, upon conclusion of the purchase of Fraport’s share, Fraport and Piatco, including its stockholders will cause the mutual withdrawal and dismissal of all civil and criminal cases pending here and abroad for the sake of unity, cordial relationship and economic prosperity," Lina said in a statement issued by the Manila Hotel Corp.

"That’s what we will try to work out with government so that we can iron them out as soon as possible," Lina told The STAR. "Because the opening of the NAIA-3 would be for the good of all, for the good of the country’s economy, good for the people, good for investments, good for employment, good for tourism. We really would like this to open because the benefits are for all of us."

Lina added it is in the government’s interest that the talks succeed because it has a 15-percent equity stake in Manila Hotel.

Manila Hotel Corp., owned by Manila Bulletin publisher and magnate Emilio Yap, took control of over 50 percent of Piatco after it bought the equity of SB Airport Investments Inc. and Sojitz Corp. of Japan for a total of $30 million.

Last Friday, Lina and Fraport senior vice president Peter Henkel signed an agreement selling the German company’s 30-percent equity stake for $200 million.

Malacañang is assessing the deal’s implications, Press Secretary Ignacio Bunye said. "What we can say in general terms, it is important that the terminal be opened as soon as possible and the government is doing all it can," he said.

Ermita had earlier indicated that although nothing would prevent the government from deciding to transfer ownership of the terminal to a private operator, it prefers to operate the airport for a period of time as it is profitable.

The government earlier said one of the options being considered is to operate the airport so it can make money to pay for court-ordered compensation to Fraport and Piatco following its seizure of the terminal.

The legal battle over the terminal has been one of the business community’s major concerns because it highlighted the difficulties foreign investors face when investing in the Philippines, especially in desperately needed infrastructure projects.

Opening the terminal for operations is one of the major items in the Arroyo administration’s economic agenda.

The Fraport buyout took Malacañang by surprise when it made the news last Saturday.

Lina said negotiations with Fraport began last year. "This is a private transaction. We are not duty-bound to convey what is being discussed by private parties," he explained to The STAR.

Fraport’s decision to accept Manila Hotel Corp.’s $200-million offer for its stake in Piatco effectively ends its dispute with its local partners in Piatco and with the government.

Fraport had sought World Bank arbitration to settle a dispute over compensation for building the terminal after Mrs. Arroyo abandoned Piatco’s government contract. The government had rejected Fraport’s request for $425 million in compensation.

Fraport earlier said in a statement that it would receive an initial sum of $50 million once it signed the deal, followed by the remaining $150 million within six months of signing.

It does not plan to pursue compensation from the government following the buyout.

The new terminal was completed in 2002 but its opening was delayed by a squabble between Fraport and its Filipino partners in Piatco, led by the Cheng family.

Fraport was further caught in the middle that year when Mrs. 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 had been signed.

In 2003, the Supreme Court nullified the contract, saying Piatco was not qualified to bid for it and that one-sided provisions in its favor were inserted after the contract was signed.

Armed with that ruling, the government last December got permission from the Pasay City regional trial court to take over the terminal and get it ready for operations. — With Paolo Romero, Edu Punay, Sandy Araneta, Rainier Allan Ronda

so a new piatco has emerged eager to negotiate with the government to open the terminal by november, i hope this will be the final agreement and we can see the terminal running before christmas

yes hopefully. consolation na rin sa mga expats namin na atat na atat ng magamit ang NAIA-T3. :D

its for the good of our country

I'm glad Manila Hotel spent those millions of pesos to buy Piatco. I hope there are still a few more million left so that they can rebuild Manila Hotel itself.

Its my philosophy in life that Nothing last forever and that no suffering is in vain. Our country has certainly suffered and not even the chaos of our country will last forever, hopefully the opening of this airport will validate my philosophy.

Well with the way things are going looks like our kabayans abroad will get their christmas wish and use the airport when they get here for the christmas break!

Manila 11:12 pm | New York 11:12 am | London 4:12 pm
Manila's mothballed international air terminal to open soon
Posted: 4:43 PM | Aug. 30, 2005


Agence France-Presse

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MANILA airport's controversial Terminal 3, which has been closed since 2003, will be opened "as soon as possible" after a deal worth more than 200 million dollars was struck, new owners Manila Hotels Corp. told AFP on Tuesday.

Jose Lina, Manila Hotels president, confirmed his company had agreed to buy the equity that Fraport AG and two other investors hold in Philippine International Air Terminals Co. (Piatco), the builder of Manila airport's newest terminal.

The company has agreed to buy Fraport's stake in the terminal for 200 million dollars, or half of what the German firm had originally demanded.

Lina confirmed that the Manila Hotel also bought the stakes of SB Airport Investments Inc. and Japan's Sojitz Corp. for a further 30 million dollars.

The 650 million-dollar terminal had been mothballed since 2003 when President Gloria Arroyo revoked the developing 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.

Lina said it was his company's intention to put "the state-of-the-art world-class" terminal into operation "as soon as possible".

He would not give a specific time frame although the government earlier this year said it hoped to have the controversial terminal opened early next year.

The terminal, which was designed to handle 13 million passengers a year, was originally scheduled to open in late 2002 to ease passenger traffic at the two existing terminals at Manila's Ninoy Aquino International Airport.

The existing international terminal is old, run down and had been described by many commentators as an embarrassment to the country.

Lina said the opening of the new terminal will "provide much needed employment opportunities, promote the Philippine tourism industry, enhance the investment climate and boost the image and credibility of the Philippine government and Filipino people."

He said: "This world class airport project is internationally known and ready for opening to serve international airlines and travelers." Manila Hotel is owned by Filipino-Chinese tycoon Emilio Yap.

Fraport, which had been seeking compensation of 465 million US dollars for the terminal project, took its case to arbitration in Washington while Piatco has a separate arbitration case in Singapore.

I'm glad Manila Hotel spent those millions of pesos to buy Piatco. I hope there are still a few more million left so that they can rebuild Manila Hotel itself.

I hope also that they will build a five star hotel near the Airport "Manila International Airport Hotel".

I think Megaworld is building one , didn't we have a thread on it in the new projects page, check under newport city or something like it. Am not sure if it's a marriot or hilton or something like that. Anyway it will be right accross the street.

I think Megaworld is building one , didn't we have a thread on it in the new projects page, check under newport city or something like it. Am not sure if it's a marriot or hilton or something like that. Anyway it will be right accross the street.

I think its a Sheraton.

I think what ncbmandy means is that Since Manila Hotel now owns NAIA 3. They should build a hotel interconnecting NAIA T3

In my opinion.. this would be Really good for Manila Hotel Corp. I just wish that now we know they have deep pockets, that they would expand and become like the Raffles Hotel Group or something. Maybe they can open a "McArthur" Chain of Hotels??

I think its a Sheraton.

i thought its 350 room first class hotel to be managed by marriott ( not necessarily marriott brand it could be courtyard or ramada, to be build in the villamor golf course

Does anybody have an idea why PAL international is being convinced to move it's operation in NAIA terminal 3? Why can't they just leave PAL alone since they are doing well in Terminal 2? Maybe all other domestic carriers can operate in terminal 1 after a few minor face lift and then they can just turn the old domestic airport into an Air Cargo facility.

Does anybody have an idea why PAL international is being convinced to move it's operation in NAIA terminal 3? Why can't they just leave PAL alone since they are doing well in Terminal 2? Maybe all other domestic carriers can operate in terminal 1 after a few minor face lift and then they can just turn the old domestic airport into an Air Cargo facility.

err... to begin with, NAIA 2 was originally designed to be the new domestic airport. Also, NAIA 2 is starting to get too small for PAL.

eventually pal will move its international operations to terminal 3, the terminal without pal may not be viable, the goverment did admit that right

Very true, Lucio Tan is just too powerful and he refuses to move to NAIA 3 without any concessions, he basically got terminal 2 for free for PAL, so why increase cost with NAIA 3 when he lost the bid there anyway.

If we had a stronger less corrupt government, this would not even be an issue and all other airlines would be in centenial, not only PAL.

Senate lauds Terminal-3 purchase

The acquisition of the majority stake in the controversial Ninoy Aquino International Airport Terminal-3 by newspaper owner Emilio Yap will lead to the opening of the mothballed facility, senators said yesterday.

“With this development, there will no longer be any barrier to the immediate opening of Naia-3, a modern air terminal built to up-to-date standards in airport construction that would make the Philippines more competitive in regional and global air travel,” Senator Juan Ponce Enrile said.

Yap’s Manila Hotel recently announced the purchase of the shares held in the terminal by three firms — German-owned Fraport AG Airport Services Worldwide, SB Airport Investments Inc. and Sojitz Corp. of Japan for $230 million.

Earlier, the Supreme Court ruled that the contract covering the construction and operation of the terminal was void from the beginning, paving the way for a takeover of the facility by the government. The government and the investors were still in the middle of negotiations for a settlement when Yap’s purchase was announced.

Enrile said the opening of the new airport terminal would improve tourism, bring in more foreign exchange and attract more foreign investors, who have been turned away by the legal controversy surrounding the construction of Naia-3.

He noted that Manila Hotel is partly owned by the Government Service Insurance System, the pension fund of government workers, which means that the benefits of the opening of the terminal will also trickle down to the employees in the public sector and eventually to all Filipinos.

Echoing Enrile’s sentiments, Senator Aquilino Pimentel Jr. said the immediate opening of the terminal would boost tourism and attract more foreign investments.

“All the profits that would be earned from these investments would go into Filipino hands. At the same time, the government is saved from borrowing additional funds from outside for additional capital and for the maintenance of the airport,” Pimentel said.

However, Senator Miriam Defensor Santiago pointed out that the Supreme Court ruling on the contract between the investors in the terminal and the government could prove to be the stumbling block to Yap’s takeover.

“The court issued an order that invalidated the contract,” she said. She suggested that the Office of the Solicitor General file a manifestation before the court to allow the new majority owners to immediately open and manage the facility.

But she applauded the takeover, saying “government should not go into private business.”

As this developed, government lawyers asked the Supreme Court to junk the complaints of two German nationals who assailed the legality of the filing of graft charges against them by the Office of the Ombudsman in connection with the contract to build and operate the terminal.

Last Feb. 17, Bernd Struck and Hans Arthur Vogel filed before the high court a petition for certiorari assailing the finding of probable cause against them by the Office of the Ombudsman.

Struck and Vogel worked as director and consultant of terminal builder and operator Philippine International Air Terminals Co. (Piatco), respectively, and were among the company’s officials charged with graft for allegedly entering into contracts prejudicial to the government.

In their petition, Struck and Vogel argued that the Ombudsman’s conclusion of conspiracy against them “was based on speculation and conjecture” and that as private persons they cannot be indicted without showing they induced government officials to commit graft.

But in a 53-page comment filed before the high court last Aug. 26, Solicitor General Alfredo Benipayo said facts and the law supported the Ombudsman’s findings. Benipayo noted that the two German nationals were part of the Piatco team that secured the services of consultant Alfredo Liongson who worked to get undue advantage for Piatco, particularly specified in the so-called Third Supplement to the Piatco contracts.

Also facing charges in the same case are Piatco officials Henry Go and Cheng Yong, and Liongson. Likewise facing graft charges for the Terminal-3 contract were former Transportation secretaries Vicente Rivera and Pantaleon Alvares, former DoTC undersecretaries Wilfredo Trinidad and Primitivo Cal, and former Manila International Airport Authority general manager Franscisco Atayde.

by Rey E. Requejo

Mini-steps every year, yet it seems we're a thousand miles away from the OPENING...... when's the next "deadline"? Dec 05?

^^^ at least we're closer now than ever before.. hehehehe.. :D

err... to begin with, NAIA 2 was originally designed to be the new domestic airport. Also, NAIA 2 is starting to get too small for PAL.


Dont errrr me ;)... 1st of: In the previous reports Lucio Tan has no desire to move to the new terminal for the fear that whomever would run T3 will charge them higher from what they already have been paying. 2nd of, even if the terminal is getting too small, there is a room for expansion somehow Going around at the back of that Phil Vill hotel(on that old Park whatever is the name of it "nayon something". 3rd of: unless PAL can't operate both international and domestic in one roof they rather stay in T2 because it helps with the transfering passenger and some cargoes plus it would be cheaper for them to have it all set up this way.

In other words, you didn't answer my question..LOL Why in the world would they not allow PAL to use T2 as their hub?

Dont errrr me ;)... 1st of: In the previous reports Lucio Tan has no desire to move to the new terminal for the fear that whomever would run T3 will charge them higher from what they already have been paying. 2nd of, even if the terminal is getting too small, there is a room for expansion somehow Going around at the back of that Phil Vill hotel(on that old Park whatever is the name of it "nayon something". 3rd of: unless PAL can't operate both international and domestic in one roof they rather stay in T2 because it helps with the transfering passenger and some cargoes plus it would be cheaper for them to have it all set up this way.

In other words, you didn't answer my question..LOL Why in the world would they not allow PAL to use T2 as their hub?


I gave a variation of this speech to ncbmandy on one of the older NAIA threads... I can't find it now, so I guess I'll have to rehash it...

Anyway, I did answer your question. Centennial terminal 2 was designed for domestic operations only. PAL's conversion of T2 into a hub was supposed to be temporary, until NAIA-3 opened. After all, the original plan was to phase out NAIA-1 and Manila Domestic in favor of a Centennial Domestic Terminal and an International passenger terminal linked by a tunnel for cargo and a monorail for connecting passengers.

NAIA-2 is small. It can barely handle a 747. Even in the international wing of NAIA-2, the spacing of the gates are too narrow for two 747s to be placed side by side. Why don't we demolish nayong pilipino for more gates, you ask? Sure. But an airport doesn't just consist of gates. You need baggage carousels, check-in counters, space for offices and facilities, etc. If you were to expand NAIA-2 to include all those things, it would entail acquiring the land, clearing Nayong Pilipino, getting rid of the gen-av area, and, wait... that would be like building a new terminal. Why spend so much on a new concourse that will conflict with the existing design of terminal 2 when it is soooooo much easier to build connecting infrastructure to a terminal that's already there. I'm not just talking about t3, there's always t1, if t3 ever opens.

Of course, the connecting infrastructure doesn't exist at the moment. However, the fact remains that NAIA-2 is clogging up. It can only be expanded by so much. PAL can remain there for another four or five years, as it is stuck in receivership. But when PAL exits receivership, it will refleet and expand. NAIA-2 cannot handle that expansion. After all, NAIA-2 is designed to be a DOMESTIC terminal with the capacity of 9 million passengers instead of 5 million domestic and 2.5 million international. As it is, PAL is stretching NAIA-2's limit.

there's alot of commotion about opening of naia 3. so when will it be open for real since mr. yap literary almost bought the new airport. any news when will it open. they can open and reinstruct the airport at the same time. so why fuss.

I gave a variation of this speech to ncbmandy on one of the older NAIA threads... I can't find it now, so I guess I'll have to rehash it...

Anyway, I did answer your question. Centennial terminal 2 was designed for domestic operations only. PAL's conversion of T2 into a hub was supposed to be temporary, until NAIA-3 opened. After all, the original plan was to phase out NAIA-1 and Manila Domestic in favor of a Centennial Domestic Terminal and an International passenger terminal linked by a tunnel for cargo and a monorail for connecting passengers.

NAIA-2 is small. It can barely handle a 747. Even in the international wing of NAIA-2, the spacing of the gates are too narrow for two 747s to be placed side by side. Why don't we demolish nayong pilipino for more gates, you ask? Sure. But an airport doesn't just consist of gates. You need baggage carousels, check-in counters, space for offices and facilities, etc. If you were to expand NAIA-2 to include all those things, it would entail acquiring the land, clearing Nayong Pilipino, getting rid of the gen-av area, and, wait... that would be like building a new terminal. Why spend so much on a new concourse that will conflict with the existing design of terminal 2 when it is soooooo much easier to build connecting infrastructure to a terminal that's already there. I'm not just talking about t3, there's always t1, if t3 ever opens.

Of course, the connecting infrastructure doesn't exist at the moment. However, the fact remains that NAIA-2 is clogging up. It can only be expanded by so much. PAL can remain there for another four or five years, as it is stuck in receivership. But when PAL exits receivership, it will refleet and expand. NAIA-2 cannot handle that expansion. After all, NAIA-2 is designed to be a DOMESTIC terminal with the capacity of 9 million passengers instead of 5 million domestic and 2.5 million international. As it is, PAL is stretching NAIA-2's limit.

Solblanc is absolutely correct. NAIA 2 wasnt designed for PAL to use it for both international and domestic operations. It was designed as a common domestic terminal. Notice that the immigration booths are temporary counters. Even if you expand the terminal (which imo will be a waste of money, since they should move to Clark in the long run), it is still too small. The terminal is very crowded especially when long haul flights arrive and depart at the same time.

Why can't they just leave PAL alone since they are doing well in Terminal 2?

This is not true, they are not doing well in terminal two for the reasons solblanc and i have explained.

& they could soon bleed again into losses once the naia 3 opens coz the passengers prefer to go to a newer & more modern terminal... their preference is a big carry over factor :)

The reason I mentioned that PAL is doing well in T2 GreyX is that, intern'l passenger transfering to a domestic flight is alot easier for it's passenger and Lucio Tan did mention that it's cheaper for them to operate both international and Domenstic in one roof, that's why Mr. Tan requested that if they do move to T3, the domestic flights should be included and that is if the asking price on T3 is comparable with what they are already paying in T2. I've never really flewn PAL international as I usually go through NWA, United and AA on most of my asian travel because I live in the central midwest but I just got a feedback from a couple of associates that apparently it beats the whole idea of transfering from T1 to domestic or T2.

On Solbanc's response, I understand and truely am I aware from the previous reports that initially T2 was intended for domestic use, I don't know, I've just looked at the pics posted here in the previous thread right in one of the aerial views of NAIA, it looks like there is big enough space for another same size building of T2 at the old park N.F. only if they can get around Phil Vill hotel if not buy that property to give way for T2 expansion, I can see that the size of that closed down park is big enough not just for an additional concorse or bridge but big enough for the expansion which was also mentioned in an old news report from MIAA.

With regards to transfering NAIA down to Clark, I don't see it totally happening, Just like what you have mentioned before GreyX it would be the same concept as in London where they have London Gatwick and Heathrow airport all together operating at the same time. Manila itself from my understanding has over 10million population where as Angeles City is not even half of it, not to mention the surrounding population of the adjacent towns and municipalities on both cities. I'm sure those how live in and around manila area would have a real tough time driving up to Angeles to catch their flights, they would rather fly out of somewhere real close to them, besides, what capital city of any country in the world that doesn't have their main airport in it's ground/wing? It is Manila where almost all foreign trades commences and outside Manila would be most of the tourism. I don't know this is just an opinion but I'm still considering y'allst input and opinion.

The reason I mentioned that PAL is doing well in T2 GreyX is that, intern'l passenger transfering to a domestic flight is alot easier for it's passenger and Lucio Tan did mention that it's cheaper for them to operate both international and Domenstic in one roof, that's why Mr. Tan requested that if they do move to T3, the domestic flights should be included and that is if the asking price on T3 is comparable with what they are already paying in T2. I've never really flewn PAL international as I usually go through NWA, United and AA on most of my asian travel because I live in the central midwest but I just got a feedback from a couple of associates that apparently it beats the whole idea of transfering from T1 to domestic or T2.


Yes, its convenient. However, it is still small, and there's no room to expand. The thing is, there's no connecting infrastructure between any terminal, not even a shuttle bus.


On Solbanc's response, I understand and truely am I aware from the previous reports that initially T2 was intended for domestic use, I don't know, I've just looked at the pics posted here in the previous thread right in one of the aerial views of NAIA, it looks like there is big enough space for another same size building of T2 at the old park N.F. only if they can get around Phil Vill hotel if not buy that property to give way for T2 expansion, I can see that the size of that closed down park is big enough not just for an additional concorse or bridge but big enough for the expansion which was also mentioned in an old news report from MIAA.


And again, spending money and expanding something when there's already something across the runway would be wasteful.


With regards to transfering NAIA down to Clark, I don't see it totally happening, Just like what you have mentioned before GreyX it would be the same concept as in London where they have London Gatwick and Heathrow airport all together operating at the same time. Manila itself from my understanding has over 10million population where as Angeles City is not even half of it, not to mention the surrounding population of the adjacent towns and municipalities on both cities. I'm sure those how live in and around manila area would have a real tough time driving up to Angeles to catch their flights, they would rather fly out of somewhere real close to them, besides, what capital city of any country in the world that doesn't have their main airport in it's ground/wing? It is Manila where almost all foreign trades commences and outside Manila would be most of the tourism. I don't know this is just an opinion but I'm still considering y'allst input and opinion.

Hong Kong Chek Lap Kok is far away from the city center. London Gatwick is RIDICULOUSLY far. Tokyo Narita is also a good distance away from Shinjuku. Kuala Lumpur closed its more proximate airport in order to open a glitzy one in the middle of nowhere, and Bangkok is building that monster that is also well away from the city center. Amsterdam Schipol is also pretty distant from the city. Shanghai Pudong is yet another remote airport. Airports aren't supposed to be near the cities, because of the hazard to the planes posed by buildings, and the noise pollution airports generate. The fact that the above airports are far can be compensated by connecting infrastructure, like expressways and rapid-rail. In Clark, the former has been completed, and the latter will come about once we start developing Clark more. Yes, Clark is in the middle of nowhere, but that's what development is all about. Clark is being connected to Subic as we speak, so as to create a wonderful logistics and industrial corridor. And as for the people of Manila, while NAIA is nice and convenient, it has no room to expand. NAIA does not have parallel runways where aircraft can take-off and land simultaneously. Clark does. Building a parallel runway in NAIA will create an expropriation nightmare, as well as new height limits for buildings. Expanding NAIA-2 for PAL's sake is wasteful. Instead, there should be a tunnel linking T2 and T3 with a monorail connecting the two. That solution will still make interconnections seamless for passengers. Right now, people say that transferring in NAIA-2 is convenient because its small. The domestic wing is just a short walk away. But this convenience is not worth the crampedness of the terminal, with horrible check-in, baggage claim, and crowded quarters. No matter how you expand NAIA-2, you will not be able to decongest its heart, especially in baggage claim and the makeshift immigration. PAL can only remain in NAIA-2 for five to ten years before its operations will choke itself.

I agree completely with solblanc. I do not underestimate the importance of NAIA (all of them), but i recognize that Clark will be and should be the future. Billions should be invested in clark and the surrounding area. Soon, the DMIA should give thought to express trains from Clark going to Subic, Tarlac, Metro Manila, and another area to the North. As a Chicagoan, this type of urban planning gives me goose bumps because of the positive outcomes that can materialize.

When I came here to the Philippines in March, I wanted specifically to land in CLARK and I did. It was incredibly much more pleasing than landing in NAIA. Although the airport is not glitzy and showy, it was humble, welcoming, and sufficient. When my mom and two brothers come to pick my up this Christmas and drag my ass back to Chicago, they will be landing in Clark, my mother hates Metro Manila.

Clark is the future and hopefully all this political bickering will not allow it to lose its moment under the sun. I was watching the news covering congress argue tonight and I was speechless, what politicians have done and IS doing to this country is one human kind's GREATEST TRAGEDIES. I don't care how smart they claim to be, they looked like clumsy clowns on meth. Hopefully Clark will not suffer from it.

Yes, its convenient. However, it is still small, and there's no room to expand. The thing is, there's no connecting infrastructure between any terminal, not even a shuttle bus.



And again, spending money and expanding something when there's already something across the runway would be wasteful.



Hong Kong Chek Lap Kok is far away from the city center. London Gatwick is RIDICULOUSLY far. Tokyo Narita is also a good distance away from Shinjuku. Kuala Lumpur closed its more proximate airport in order to open a glitzy one in the middle of nowhere, and Bangkok is building that monster that is also well away from the city center. Amsterdam Schipol is also pretty distant from the city. Shanghai Pudong is yet another remote airport. Airports aren't supposed to be near the cities, because of the hazard to the planes posed by buildings, and the noise pollution airports generate. The fact that the above airports are far can be compensated by connecting infrastructure, like expressways and rapid-rail. In Clark, the former has been completed, and the latter will come about once we start developing Clark more. Yes, Clark is in the middle of nowhere, but that's what development is all about. Clark is being connected to Subic as we speak, so as to create a wonderful logistics and industrial corridor. And as for the people of Manila, while NAIA is nice and convenient, it has no room to expand. NAIA does not have parallel runways where aircraft can take-off and land simultaneously. Clark does. Building a parallel runway in NAIA will create an expropriation nightmare, as well as new height limits for buildings. Expanding NAIA-2 for PAL's sake is wasteful. Instead, there should be a tunnel linking T2 and T3 with a monorail connecting the two. That solution will still make interconnections seamless for passengers. Right now, people say that transferring in NAIA-2 is convenient because its small. The domestic wing is just a short walk away. But this convenience is not worth the crampedness of the terminal, with horrible check-in, baggage claim, and crowded quarters. No matter how you expand NAIA-2, you will not be able to decongest its heart, especially in baggage claim and the makeshift immigration. PAL can only remain in NAIA-2 for five to ten years before its operations will choke itself.

:yes: I dont even need to add anything to what he said. He covered it all:)

How far would it take to reach Manila by car. Isn't it a little far would it inconvenience those Manila bound?

Yasay: Manila Hotel can't operate Terminal 3


By JOHN ANTHONY A. CONCEPCION, abs-cbnNEWS.com

The MIA-NAIA Association of Service Operators (MASO) on Saturday said the Manila Hotel Corp. (MHC) cannot operate the Ninoy Aquino International Airport (NAIA) Terminal 3 even if it has bought the shares of Fraport AG in the Philippine International Air Terminal Co. Inc. (PIATCO) consortium.

MASO chairman Perfecto Yasay Jr. said the government can take over Terminal 3 anytime it wants to because it has the legal right to exercise authority over the airport.

"The government can take over the facility now if it wants to," Yasay said at the weekly Kapihan sa Sulo Hotel news forum.

He said the Supreme Court has already nullified the right of PIATCO to operate and manage Terminal 3 and the high tribunal's decision precludes the right of MHC to exercise management over the facility.

Fraport has reportedly accepted an offer worth $200 million for its stake in PIATCO from MHC.

The German company earlier sought arbitration from the World Bank in Washington to settle a dispute over compensation for the terminal. The Philippine government had rejected Fraport’s request for $425 million in compensation then seized Terminal 3 in December.

Yasay noted that operation of the terminal by MHC would be illegal because it did not undergo public bidding.

He said the best solution to settle the dispute is for the government to take over the terminal's operations.

He said MHC's only stake in the terminal is a share in the compensation to PIATCO that is now the subject of a hearing at the Pasay City Regional Trial Court.

"The government can takeover Terminal 3 and compensate PIATCO according to what the court will say when it decides on the case," he said.

Yasay said his group has an agreement with the government in the operation of services such as ground handling and catering.


====AY NAKU PO!!! NEVER ENDING TALGA 'TONG AIRPORT

Parang yung presidente and daming naghahabol.

maso is afraid that onced piatco operates the terminal, thei ground handling services will be terminated and given to another supplier favorred by them

Well, i was going to respond to you allst comment , with solblanc and all, but I figured that it would be senseless because of this latest news. Looks like the T3 opening will be jinxed again. To me, having a 3rd worldish looking International airport wouldn't be so bad as long as the credibility of the people behind it is not at stake.

No further comment your honor!!!! LOL

well almost everybody welcomed the news of manila hotel inc buying the shares of those foreign partners in piatco, knowing that mr emilio yap the owner is a very respectable businessman in the philippines, im sure that with piatco under his control all these ownership and otherissues related to its operations will be solve asap with the government and other paties concerned so that the terminal will finally be open for public use

Are you telling me that someone just all of a sudden felt the urge to be in the media limelight and ride someone else's popularity (or notoriety) just for the heck of it??LOL

Yasay jr?? Puhlease!!!!??? (@!$$#@) LOL. MHC is going to be a big help in saving the phil govt's arse from embarrassment in the international community from being branded as the most corrupt govt in asia, not to mention the long arduous lawsuits with the international arbitration comittee. Someone needs some good biatch slappin boy!!
sowwie, I just felt like saying that..... Whewww, that felt better!!! LOL

and were you snappin your finger and twisting your hips while you were saying that. hehe

Nope, but I was pounding my head with my own fist, wishing it's the head of that person who started all these mess. If only I knew who it is ....

take your pcik. here's a good elucidation on the events.

http://journal.houseonahill.net/index.php/journal/entry/there-is-more-to-naia-3-and-piatco-than-meets-the-eye/

^^ that journal was so old

yup but it's good background though

open the damn terminal!!!!!! before the SEAG!!!!!

Looking at current news, it seems as if Lucio Tan wants to steal NAIA-3 from under PIATCO.

For goodness' sake, why now? Judging by the arguments that Yasay indicated which are nothing but legal loopholes, these arguments could've been used two years ago, when PIATCO's contract was nullified, but noooooooo. I'm speculating that, if the Manila Hotel gets the deal to operate T3, they can bring up a scenario which could screw Lucio Tan's ground handling services, and that would be a big no-no now, wouldn't it?

*sigh* One step forwards, two steps back...

http://www.sunstar.com.ph/static/man/2005/09/04/news/takeover.by.hotel.group.of.new.airport.opposed.html

And of course, there's also this:

http://www.abs-cbnnews.com/storypage.aspx?StoryID=15307

In which they say that the Takenaka contract will finally be signed, albeit ignoring the entire Manila Hotel thingamajig. I'd believe this, but this is the only current source pertaining to Takenaka, and I've also seen so many similar articles a few months before, and did Takenaka sign? Noooo....

I've read in between the lines of every single article with regards to T3, and the only thing I can say for sure is that saliva is being used. There are talks, yes, but everytime they lead somewhere (which is rare), something happens. The only solution I can think of at the moment is a meteor hitting either T1 to open T3; or T3 to jumpstart relocation to clark.

Searching for info on this terminal is what dragged me to SSC to begin with, and its starting to get tiresome. I mean, why can't our government officials have that same excitement that we do when it comes to development? All of us here in SSC glow when we see a new scraper, a new mall, an new expressway, a new rail line, a [not-s-new] airport... why can't those in government feel that glow? I mean, does cash really make them that happy? I can imagine that the people in the upper echeleons of our government would eventually squirrel away enough public funds so that they'll start actually caring about their job, but its not happening. Just how much cash are we going to have to chuck at our government?

I have a lot of faith in this country, but there are times when it just wears thin. My level-headed argument would be that we are a young country, and development doesn't come overnight. We can't compare ourselves to other countries, as Singapore had plenty of reasons to work double-time to become the little island that could, and Taiwan had to do something with the constant threat of China, while we lounged under the protection of US bases and a free-trade agreement with the United States. But my head is not level at the moment, and I wonder why our idiot ratio in government is not improving. After all, the T3 scandal would never have happened if someone in government, and many someones at that, just did their job properly.

Despite the entry of MHC into the T3 mess, the news is still delivering rehashed info, and NOTHING HAS BEEN SIGNED.

Senators Loi, Jinggoy Estrada and Gordon call Manila Hotel action on NAIA-3 good for RP economy, improved image abroad


By DIEGO C. CAGAHASTIAN


The mother-and-son team of Senators Loi and Jinggoy Estrada cited yesterday the purchase by the Manila Hotel Corp. of foreign stakes in PIATCO (Philippine International Air Terminals Corp.), builder and operator of the Ninoy Aquino International Airport (NAIA) Terminal 3, saying "it is good for the national economy and will further improve the image of the country abroad.


"Manila Hotel’s business savvy and its owners’ deep sense of patriotism led to the buyout by Filipinos of the interests of Fraport of Germany, Sojitz of Japan, and SB Airport Investments of Singapore in PIATCO, and the withdrawal of all litigation and arbitration proceedings here and abroad. This means the early opening of NAIA 3 is in sight," said Sen. Jinggoy Estrada.

His mother, Sen. Luisa "Loi" P. Ejercito Estrada, said that at a time when businesses are downsizing and people are losing jobs, the opening of the new airport is "a shot in the arm that will hopefully revive tourism, boost jobs, and collateral economic opportunities."

"It is generally good for the country, especially tourism, and the Manila Hotel should be lauded for its business initiative," Mrs. Estrada said.

The wife and son of former President Joseph Estrada were interviewed while visiting the detained former Chief Executive at their resthouse in Tanay, Rizal, a weekend routine for the family.

Senator Loi, author of the Anti-Trafficking Law and an advocate of women’s rights, said she hopes that under Filipino private interests and the government, the NAIA International Passenger Terminal (IPT) 3 would be able to strike a balance between the needs of tourist openness and security measures that would respect the rights of passengers.

Senator Jinggoy, chairman of the Senate Committee on Labor and Employment, said the number of unemployed and underemployed in Metro Manila would somehow be lessened with the operation of a world-class airport such as NAIA 3, adding "I hope the new owners of PIATCO and the government would hasten the opening of this facility."

"Every time I go abroad, I feel sad about the sorry state of our international airport, thinking how can we compete under these circumstances? Now, I see there is hope," Senator Jinggoy said.


Manila Hotel move is step in the rightdirection — Gordon


By JUDE C. GALFORD III


"It’s a step in the right direction."

Thus said Sen. Richard Gordon of the Manila Hotel Corporation’s (MHC) acquisition of the Fraport shares in the Philippine International Air Terminals Corp. (PIATCo), expecting that this development would make the country more attractive to foreign investors.

Gordon, head of the Senate committee on government corporations and enterprises, said that opening the modern facilities of the Ninoy Aquino International Airport 3 (NAIA-3), which was built by PIATCo, to the public means that "we could now compete with our Asian neighbors in terms of operating a high-tech air terminal."

"The old airport looks primitive," Gordon said of the aging NAIA 1, which the new terminal would soon render obsolete.

"The deal with Fraport would move towards the opening of the airport (NAIA -3)," Gordon said in an interview.

He explained that while the country suffered a set back when the terminal lay idle for two years arising from a legal dispute over PIATCo’s contracts with the government, MHC’s buyout of the Fraport stakes solved this problem.

"The earlier we open the airport, the better for everyone," he said.

Gordon addded that the old terminald, does not give a good first impression to foreign tourists coming to the country.

The senator expressed confidence that MHC’s stake in PIATCo would hasten the opening of the NAIA-3 and thus give the country an edge over our Asian rivals in attracting tourists and investors.

During an interview, Gorodon noted that foreign tourists asked him why a new facility is not being used and that this gives the impression that the country is being run poorly.

"This will solve that perception," he assured.

Gordon also pointed out that while the old airport should be de-commissioned as our "showcase airport," it can also be used for other purposes to create new revenues for the government.

"I don’t know what they plan to do (with old airport), but they can have it rented," he said.

But he stressed that NAIA-3 should now be opened and give the country a competitive advantage in terms of offering a high-tech airport facility.

Lucio Tan firm offers $300 million for Terminal 3 !

this headline was posted in www.bworld.com.ph
unfortunately i could not open it, cause i´m not a member of that page. does anyone have further infos ?
philpal

Employers Confederation of the Philippines President Soriano urges immediate opening of NAIA 3 to boost economy, tourism, create more job opportunities after Manila Hotel purchase of its controlling interest

By BERNIE CAHILES MAGKILAT


The Employers Confederation of the Philippinaes (ECOP) has urged for the immediate opening and operation of the NAIA Terminal 3 following the buy-out of the majority shareholdings of the Philippine International Airport Terminals Co. (PIATCO) by Manila Hotel Corp. to boost the country’s sagging tourism sector and create more jobs.

"It is good for business particularly tourism and tourism creates job opportunities," said ECOP President Rene Soriano.

He noted that the airport has been in hibernation for a long time now and the entry of Manila Hotel group provides an opportunity to expedite its opening.

"This is basically a breakthrough towards the early opening of the airport which is what we need very badly at this time," he said.

Soriano has urged that parties should prioritize the opening of the airport soon, the legal proceeding may be settled later.

"Theoretically speaking the opening and operation of the airport should be done first because we cannot allow the multi-billion infrastructure to rut," he said.

Miguel Varela, Chairman Emeritus of the Philippine Chamber of Commerce and Industry, said the opening of the state-of-the-art facility is a way of attracting tourists.

"It will not take months to open that facility," he said.

Varela further said the opening of the airport facility will erase whatever doubts there may be on investors minds that the Philippine government cannot implement commitments.

"This is a very welcomed development by the business community despite the political noise that we are having. This is good news," Varela said.

Lucio Tan firm offers $300 million for Terminal 3 !

this headline was posted in www.bworld.com.ph
unfortunately i could not open it, cause i´m not a member of that page. does anyone have further infos ?
philpal

maybe this same news

Taipans fight for control of NAIA 3
Sept 06, 2005
IT HAS TURNED INTO A battle of taipans.

Lucio Tan’s Asia’s Emerging Dragon Corp. (AEDC) has offered the government $300 million for the right to operate the Ninoy Aquino International Airport Terminal 3 (NAIA 3), the company’s lawyer said.

Emilio Yap’s Manila Hotel Corp., now the majority owner of Philippine International Air Terminals Co. Inc. (PIATCo), has also asked the Arroyo administration to allow it to operate NAIA 3.

Manila Hotel is buying the 61-percent stake in PIATCo of the German firm Fraport AG for $200 million. It has also acquired the combined 20-percent interest in NAIA 3 of Sojitz Corp. and SB Airport Investment Corp. for $30 million.

PIATCo built and was to operate the terminal before it got caught in a morass of lawsuits that resulted in the cancellation of its contract and the government expropriation of the airport facility.

AEDC lawyer Perfecto Yasay said the government could use the $300 million the firm was offering. He said Manila Hotel did not have the $200 million to pay Fraport.

Tan and Yap had been known to be at odds for a long time. Recently, though, it was believed they had buried the hatchet.

AEDC is now controlled by Tan. Established by the country’s six taipans, or wealthiest Chinese-Filipino businessmen, during the administration of President Fidel V. Ramos, AEDC submitted an unsolicited offer of $350 million to build and operate NAIA 3.

But when the project was subjected to a Swiss challenge, the Ramos administration said PIATCo had submitted a better offer. Except for Tan, the other taipans then decided to scrap the project.

Under a Swiss challenge, a deal is subjected to counteroffers to see if the original offer was reasonable.

The original proponent, however, retains the right to match the higher offer if it wants to keep the contract.

Yasay said AEDC now had a “legal right” to operate NAIA 3 after the Supreme Court nullified PIATCo’s contract with the government in 2002.

The Arroyo administration seized the airport facility in December 2004, hoping to open it by June 2005, and now by December.

AEDC is pressing the Department of Transportation and Communications to recognize its “valid claim.”

Yasay told Transportation Secretary Leandro Mendoza in a Sept. 1 letter that “any claim of Manila Hotel to operate NAIA 3 was invalid because the law requires a bidding.”

“At best, what Manila Hotel got for buying Fraport’s stake was a share in the just compensation PIATCo may be entitled to,” Yasay said in the letter.

Yasay said he first wrote Mendoza about the issue on March 14, 2005, and asked for a dialogue. Nearly six months have passed and Yasay said he had yet to hear from Mendoza.

Alfonso Cusi, Manila International Airport Authority (MIAA) general manager, agreed the government could not just allow any private group to operate NAIA 3 without a bidding.

“Since the Supreme Court nullified the contract with PIATCo, the government has to bid out the operation of NAIA 3. The government cannot just assign to anybody the right to operate it,” Cusi said in an interview.

The MIAA chief denied the Arroyo administration had a hand in the deal between Manila Hotel and Fraport.

He said Manila Hotel’s decision to buy Fraport’s stake in PIATCo amid all the unresolved cases and issues was a business decision.

“Manila Hotel could be betting on several scenarios. Now, whether any of these scenarios would materialize is another thing,” he said.

Mendoza, however, said the government had been talking with Manila Hotel.

He indicated the Arroyo administration might allow PIATCo, now controlled by Manila Hotel, to operate the airport terminal, depending on how the legal issues were resolved.

For their part, PIATCo lawyer Liwayway Vinzons-Chato said that if the government would not let PIATCo operate NAIA 3, then no other private group should be given the contract.

Chato said the AEDC offer of $300 million to operate the new terminal was ridiculous.

“How can they do that? They did not even win the bidding,” she said.

Chato pointed out the case filed by AEDC against the DOTC in 1997 to nullify the awarding of the build-operate-transfer contract to PIATCo was withdrawn by the taipans.

She said if the government would not let PIATCo operate NAIA 3, the company would take its chances with the arbitration case it had filed in Singapore where it is asking for $525 million in compensation.

But Yasay said AEDC was forced by former President Joseph Estrada to withdraw the 1997 case.

He said AEDC’s offer of $300 million was reasonable since it was what PIATCo spent to construct the terminal, although the amount was negotiable.

Takenaka Corp., which built the terminal for PIATCo, said the consortium spent $290 million to put up NAIA 3. PIATCo, however, claimed it spent $650 million.

Fraport also sued the Philippine government for $424 million before the World Bank arbitration court in Washington DC.

The government has filed a $900-million countersuit against PIATCo and Fraport, also in Washington.

and here it is from businesworld, richard

Tan firm offers $300 million for Terminal 3

Asia's Emerging Dragon Corp. or AEDC, a company reportedly controlled by wealthy tobacco magnate and Philippine Airlines owner Lucio Tan, is offering to pay the government $300 million for the construction of the Ninoy Aquino International Airport Terminal 3, in exchange for the right to operate the facility for 25 years.

A ranking government official said yesterday this was in line with AEDC's attempt to assert its right to operate Terminal 3, based on its 1996 agreement with government that preceded the contract of Philippine International Air Terminals Co. or Piatco.

This was confirmed also yesterday by AEDC lawyer Perfecto Yasay Jr., who claimed that his company had written Transport officials in March and again in September to reiterate its claim to Terminal 3.

But the government official said AEDC's claim was not necessarily valid even if the Supreme Court voided in 2003 the 1997 contract of Piatco to build, operate, and transfer the airport.

That court action effectively voided all other contracts and proposals related to Piatco, including that of AEDC, the official claimed.

thanks skylinepigeon and everyone else for the news.

now exacty what the hell is going on again ? another continueing time loss in squarells ? slowly this whole thing is not only rediculous, but rather simply disgusting......how much worse can this get ? maybe the best solution is to burn it down like what happened to the former manila international airport !

calm down Richard, sooner or later bubuksan din yang airport na yan.

bubuksan din yang airport na yan.

you mind translating amigo 32 ? i just do not speak tagalog.
anyway it´s not sooner, rather later.....

bubuksan din yang airport na yan.

you mind translating amigo 32 ? i just do not speak tagalog.
anyway it´s not sooner, rather later.....


"sooner or later they are going to open the airport"

salamat po olineil !

:) :) :)
Richard I'm gonna open that airport for you.
Hast du deine Fahrkarte?
:jk:

well amigo, you astonish me again and again !
ja ich komme bald nach manila, aber erst wenn T 3 eröffnet wurde ! (yes i will be comming to manila soon, but not before T 3 has opened/for those who do not understand german). in the meantime i will just have to be patient i guess. i just do not want to arrive at that old airport any longer. T 3 reminds me of T 2 in frankfurt. big, bright, comfortable, modern. what a waste to mothball it for so long.

NAIA Terminal 3 unlikely to open in '05


The Ninoy Aquino International Airport (NAIA) Terminal 3 is unlikely to start operations this year due to pending construction jobs, the president of the Air Safety Foundation Philippines said Thursday.

Amado Soliman said Terminal 3 still lacks terminal facilities which allow the transport of cargo and passenger transfers to NAIA terminals. NAIA has two other terminals at present, Terminal 1 which handles all other international flights and Terminal 2 which centralizes both international and domestic flights for Philippine Airlines.

Soliman said the Manila International Airport Authority (MIAA) needs to build a perimeter road to connect Terminal 3 with the cargo terminal along Ninoy Aquino Avenue and the other distribution center near Terminal 1.

He added that electronic devices installed in the unused Terminal 3 also needs to be fully tested for functionality.

Despite his technical misgivings, Soliman declined to comment on legal issues hounding Terminal 3.

Alfonso Cusi, MIAA general manager, earlier said the Terminal 3 may open before the end of the year. The terminal, designed to handle 13 million passengers yearly, was supposed to have opened in 2002 according to plan.

Last week, the government, through the Department of Transportation and Communications, signed a deal with Japanese contractor to finish construction of the terminal.

Transportation Secretary Leandro Mendoza said the contract signed was "over and above" the acquisition deal brought forward by the Manila Hotel Corp. for the shares of the Philippine International Air Transport Corp. (PIATCO) held by two foreign companies.

Manila Hotel purchased a $30-million equity stake of SB Airport Investments Inc. and Sojitz Corp. of Japan and $200-million equity shareholdings in PIATCO, including all rights and interests in its related companies.

Mendoza said the government may drop the country’s counterclaim in a legal case involving the terminal, specifically between PIATCO and foreign partner Fraport AG.

NAIA 3 is currently the subject of a $900-million arbitration case in Singapore and Washington.

nothing new ofcurs :bash:

...




Lovely...just....lovely.... :wallbash:

If they put a mall in that terminal I bet it'll open soon.

‘No need to rebid NAIA-3 operation’
By Sandy Araneta
The Philippine Star 09/11/2005

The government may find itself guilty of unjust enrichment if it pushes through with its plan to bid out the operation of the Ninoy Aquino International Airport terminal 3 (NAIA-3), according to a lawyer representing a company claiming a right to operate the facility.

Former Securities and Exchange Commission chief Perfecto Yasay, now lawyer of Asia’s Emerging Dragon Corp. (AEDC), said the re-bidding will further delay the opening of the terminal, which has been mothballed since 2003.

"There is no need for the government to re-bid the operation of the terminal if the purpose is just to get the highest bid. The government should give the right to operate the terminal to the AEDC because it is the rightful claimant under the law and is ready to pay $300 million," Yasay said in a radio interview.

The $300 million is enough to complete the remaining work on the facility, which Yasay said requires about $70 million. The remaining $230 million would be used to compensate Philippine International Air Terminals Co. Inc. (Piatco), which built the terminal and is locked in a legal battle with the government over the facility.

"But why should the government bid it out? Does the government want more money?" Yasay said.

Instead of subjecting the operation of the terminal to a re-bidding, it should be awarded to the AEDC, Yasay said.

AEDC, which is owned by beer and tobacco magnate Lucio Tan, claims it has the legal right to operate the NAIA-3.

The AEDC submitted an unsolicited offer to build and operate the terminal and this was accepted by the National Economic Development Authority in 1996, Yasay said.

It then signed a memorandum of agreement with the Department of Transportation and Communications that year, authorizing the AEDC to proceed with the build-operate-and-transfer project, he added.

However, the AEDC proposal was subjected to a "Swiss challenge" by Piatco, which made a better offer and won the government contract.

Since the Piatco contract was later nullified by the Supreme Court, that left the AEDC offer the only legitimate and existing bid under the law, Yasay argued.

AEDC has offered to compensate Piatco for the cost it incurred in constructing the terminal.

Piatco is asking over $600 million in compensation after the government expropriated the terminal in December 2004 but the government is contesting the figure.

The final figure is being determined by a Pasay City regional trial court, which gave the government permission to take control of the terminal.

The $650-million terminal had been mothballed since 2003 when President Arroyo revoked Piatco’s contract with the government on the grounds that certain terms were illegally renegotiated by her deposed predecessor Joseph Estrada in 1998.

Battle of Taipans seen in tug-o-war for Naia-3
POSTSCRIPT By Federico D. Pascual, Jr.
The Philippine Star 09/11/2005

TAIPANIC BATTLE: The titanic tug-o-war for control of Terminal 3 of the Ninoy Aquino International Airport (Naia-3) is fast shaping up into a Battle of Taipans. The ground at the tarmac is already shaking.

The early bid by Dr. Emilio Yap, owner of the Manila Bulletin and the Manila Hotel, to control Naia-3, has been challenged by Dr. Lucio Tan, owner of Philippine Airlines and a host of other enterprises.

Using his Manila Hotel as bidder, Yap threw in $200 million to buy the 40-percent share of German airport operator Fraport AG in the Philippine International Air Terminals Co. (Piatco) that is asserting its controversial contract to build and manage Naia-3.

Yap’s line of attack seems to be: Whoever controls Piatco will control Naia-3 – that is, if its contract, nullified in 2003 by the Supreme Court, is revived and validated in the unlikely reversal of the SC decision voiding it.

Assuming Piatco’s contract to run Naia-3 is reinstated, which is the best way to gain control of the firm run by the Cheng family, the biggest name in the local airport cargo handling business. * * *

TAN’S COUNTER: But the signatures on the Manila Hotel-Fraport buy-out contract had barely dried when Tan raised the ante and offered directly to the government $300 million to buy control of Naia-3.

Note that Tan’s $300-million offer, made to the government and not to Piatco or Fraport, is 50-percent higher than the $200 million paid by Yap to Fraport to buy out its full share in Piatco.

But as everybody in this small town knows, money is not the only consideration in closing business deals of this magnitude. One big factor, to give an example, is the Big Hand of Malacañang.

Who between Yap and Tan will eventually control the premier international airport now sitting in the dark across the lone runway of the old airport in Pasay City? We see looming a long-drawn taipanic battle. * * *

WHO TO TALK TO: Legally, Piatco no longer has a valid contract to operate Naia-3. Shot through with alleged deficiencies and violations of law, its contract has been voided by no less than the high court. The deal is, in theory, no longer enforceable.

So why did Yap still buy into Piatco by buying out Fraport? Maybe Yap – and possibly someone in the Palace – know something the rest of us do not know.

The government is now supposed to be in control of the premises, of both the land and the structure built by Piatco on it for something like $500 million.

In fact, the government is in the final stages of expropriating the property, taking possession of it after due process and just compensation.

Is Tan correct in talking to the government instead of to Fraport or to the Chengs of Piatco? At this point, nobody – except, again, that someone in Malacañang – knows. * * *

TAN’S HEADACHE: Let us peek into the background of Tan to be able to divine what forces move him in trying to gain control of Naia-3.

Tan owns Philippine Airlines, which he revived at great personal cost to him after that crushing fight with the pilots’ union some years back. The flag carrier now has exclusive use of the Centennial Terminal (sometimes called Naia-2, if you may, with Naia-1 being the original terminal where Ninoy Aquino was executed in 1963).

Yap or any rival taipan controlling Naia-3 can make life miserable for Tan. For instance, the airline could be forced to divide its domestic and international operations between Naia-2 and Naia-3. This costly spreading out of resources, personnel and operations will kill PAL.

If the government sides with the new Naia-3 operator, it could add to Tan’s misery by withdrawing or making unpredictable the customs and immigration services in the terminal used by PAL’s international flights.

Also, if Yap’s control of Piatco is perfected, the giant cargo handling firm could dilute to anemic levels Tan’s airport and airlines-related businesses.

I dare say that if such a dire scenario comes to pass, Tan is likely to just close down PAL rather than see himself go down to his knees before Yap. * * *

AEDC VEHICLE: Aside from being PAL owner and sole user of the Centennial Terminal, Tan is also the remaining stockholder of the Asia’s Emerging Dragon Corp.

The AEDC, composed of the really big taipans of Philippine business (who strangely did not include Yap), was formed with the encouragement of the government purposely to build a modern international terminal that could compare with the best in the region.

The AEDC was already holding the airport contract. But when it submitted its ambitious plan for Naia-3, the hitherto unheard-of Piatco emerged from nowhere and made a better offer. When AEDC failed to make a counter-offer, the contract was given to Piatco.

With that setback, six of the seven taipans withdrew from AEDC, leaving Tan running AEDC by his lonesome.

Using AEDC as the vehicle since it was the original contract-holder for Naia-3, Tan submitted last Sept. 8 his $300-million offer to take over and operate Naia-3. He is dealing directly with the government since the government has taken over Naia-3 with the voiding of the Piatco contract. * * *

QUESTIONS: Despite the slew of press releases about Manila Hotel’s takeover of Piatco and ultimately the airport, the Fraport deal remains shrouded in mystery.

First, there are questions as to how Manila Hotel, with its authorized and paid-up capital of only P1 billion ($18 million), can buy Fraport’s $200-million stake in Piatco. Some say this is analogous to a snake swallowing an elephant.

Second, since the Government Service Insurance System owns roughly 15 percent of Manila Hotel (per its 2004 General Information Sheet), the latter’s purchase of a troubled firm like Piatco automatically makes the government pension fund share in the risk.

Not only was Piatco’s contract voided and the government’s hold on the property tightened with expropriation proceedings. Some Piatco officers and some government officials are also facing graft and plunder charges before the Ombudsman.

I have heard members of the Confederation for Unity, Recognition and Advancement of Government Employees (COURAGE) expressing grave concern over the Manila Hotel-Fraport-Piatco deal. They said they would oppose any plan by the pension fund to extend loans or to guarantee debts to be incurred by Manila Hotel as a result of its purchase of Fraport’s shares. * * *

PALACE ASSURANCE: On whose side is Malacañang in this looming battle royal? It cannot be that the Palace will remain indifferent considering the big stakes involved.

If it is any consolation, Executive Secretary Eduardo Ermita ended weeks of speculation when he declared days ago that government is not entertaining any bid for Naia-3 until the administration has resolved all the legal questions.

He said that government’s priority is to finish the expropriation proceedings and for airport Japanese contractor Takenaka to make the airport ready for use as scheduled. Does this mean that the competing bids of AEDC and Manila Hotel-Piatco would have to wait?

It is noteworthy that Ermita also said that government would pursue the graft and plunder cases against the public officials and private individuals who were involved in the airport project.

But then there is sometimes a gap between what government says and what it does.

I just read in a Philippine newspaper here in Las Vegas, Tan is scoping Terminal I for its operations even sending inspectors to check the structure of the old Terminal I. Oh let me grab that paper again!

mr tan is a shrewd businessman hes not interested in that new and spanking terminal3 if it will kill his business, he would rather park his planes in t1 or even t2 bec his pal domestic and international under one roof saves cost, makes operations more efficient and more convenient for pax and more profit for the airline

Palace overrules Supreme Court on NAIA 3

BY AMADO P. MACASAET

THE purchase by Manila Hotel of the shares of Fraport of Germany and two other stockholders of Philippine International Air Transport Corp. in a bid to operate the unfinished NAIA Terminal III is a naked assault on a decision of the Supreme Court.

The compromise agreement proposed to be concluded among the Office of the President, Manila Hotel and Piatco has the effect of resuscitating a contract earlier declared null and void by the Supreme Court.

Manila Hotel, while claiming correctly that the purchase of the shares is private, does not say that it will end up owning around 90 percent of Piatco.

The first question, earlier asked here, is whether or not the possible violation of the Constitution by Fraport is erased by the proposed compromise agreement.

Fraport violated the Constitution when it increased its equity in the public utility company from 30 percent to more than 60 percent.

Including the holdings of the two other stockholders, the equity of Manila Hotel in Piatco would come up to around 90 percent.

The compromise agreement would have the effect of resuscitating the original status of Piatco under another name.

It must be emphasized that the contract of Piatco with the Department of Transportation and Communications has been declared null and void. Therefore, the compromise agreement would overrule the Supreme Court ruling.

This travesty of justice should not be committed by a President who had just escaped the wrath of impeachment but whose tenure remains threatened by the ire of the people as shown in stepped-up rallies demanding her resignation.

Initially, we could not understand why Manila Hotel had to buy the shares of Fraport reportedly for $200 million. Including what it claimed would be paid to Piatco ($70 million) and the cost of buying two other stockholders, Manila Hotel would end up spending about $350 million to buy Piatco.

It is nobody’s business to question that transaction.

However, it now appears that the intention could very well be to resuscitate a contractor which has defaulted on its contractual obligation and whose contract has been voided by the Supreme Court.

Once resuscitated in the name of Manila Hotel, it might claim legitimacy. It is legitimate if the transaction stops there. But it doesn’t.

Obviously, the plan is to change Piatco’s corporate name and presume that the nullification of its contract can be ignored. Even Ferdinand Marcos, who was himself the law during his Martial Law regime, never even imagined overruling the final ruling of his Supreme Court.

The final ruling of the Highest Court is part of the law of the land. It stays in the statute books for all time. It cannot be changed even by the Court itself.

Congress repeals or amends laws, but it does not meddle with the final decisions of the Supreme Court.

And now comes the Office of the President planning to enter into a compromise agreement to operate Terminal III that has been expropriated by the government.

The complexion of the shares of Piatco does not change by a transfer of ownership. Nor does it obliterate the ruling of nullification by the Supreme Court and the final act of expropriation made by the state.

In this case, it matters not that Asia’s Emerging Dragon Corp., with its original memorandum of agreement with the DOTC, remains the unchallenged bidder precisely because of the nullification of the Piatco contract.

The fear is that Malacañang may yet impose on the democratic system and the presumed independence of the judiciary a violation that converts the system of government into a dictatorship.

Overruling a decision of the Supreme Court is as bad if not worse than Amendment 6 of the 1973 Constitution where the President had the authority to usurp the functions of the Batasan to make laws through decrees.

At least at that time, we knew that we were under a dictatorial regime. But even in that regime, Marcos never violated or overruled the final decisions of the Supreme Court.

In this democratic space, such violation may yet happen if the Office of the President accepts the illegal compromise agreement for the operation of Terminal III by the Manila Hotel.



I understand that this newspaper wants to make as many potshots against the administration as possible. What I don't understand is that malaya is taking potshots at something that hasn't even happened yet. The title is misleading, and it leads one to believe that Malacanang has already signed a deal with the Manila Hotel, when they haven't. They're talking to the Manila Hotel, as they are with Lucio Tan, but that's all they're doing, talking. The article does not show any evidence of Gloria already making a decision. These potshots are poorly done. There are a number of other things that one can fault Gloria for, so why try to make slander out of thin air?

As witnesses, newspapers and journalists they can be irresponsible and can also be bought.

I just read in a Philippine newspaper here in Las Vegas, Tan is scoping Terminal I for it operations even sending inspectors to check the structure of the old Terminal I. Oh let me grab that paper again!
Well some of our hopes to keep T1 alive seems to be warm at the moment. Now lets just hope if Tan does decide to move all ops to T1 that he'd invest in refurbishing and modernizing the place. :D

We will have NAIA Terminal 3 Thread number 5 in no time. and then thread number 6, 7, 8, 9, 10. :(

I understand that this newspaper wants to make as many potshots against the administration as possible. What I don't understand is that malaya is taking potshots at something that hasn't even happened yet. The title is misleading, and it leads one to believe that Malacanang has already signed a deal with the Manila Hotel, when they haven't. They're talking to the Manila Hotel, as they are with Lucio Tan, but that's all they're doing, talking. The article does not show any evidence of Gloria already making a decision. These potshots are poorly done. There are a number of other things that one can fault Gloria for, so why try to make slander out of thin air?

AMADO P. MACASAET of Malaya is a pro-ERAP journalist. He used to have a show on Channel 4 when ERAP was in Malacañan. Don't expect any positive opinion/editorial coming from him because his only motive is to discredit the Arroyo administration. Just google/yahoo his name on the internet (amado macasaet + arroyo) and you will notice that he keeps on publishing malicious statements against the First Family and he never fails even the smallest issue.

NAIA-3 repair to cost P1B
Clarissa S. Batino Inquirer News Service Posted: 7:37 PM | Sept. 11, 2005

The Manila International Airport Authority is allotting P1 billion of its retained earnings to complete unfinished civil works at the Ninoy Aquino International Airport Terminal 3 in preparation for its opening, said MIAA general manager Alfonso Cusi.

He said the bulk of the required amount would be used to complete road construction works and installation of power and communication facilities. A portion of the amount, he added, would be earmarked for the payment of the contractor, mostly likely Takenaka Corp. of Japan, that would complete the remaining unfinished projects at the Naia 3.

The new terminal should have opened in June but was reset for December. The MIAA said delays in the forging of the contract with Takenaka had pushed back the Naia 3's timetable.

Takenaka had agreed in principle to complete the Naia 3 for $50 million plus a $100,000 provision for lawsuit. But the actual signing of the contract with the government had been deferred several times.

The contractor will be required to extend the runway, ensure the structural integrity of the terminal. The government found several construction defects at the terminal.

The MIAA, which runs the Naia terminals, registered a net income of P472 million in the first seven months, up 34 percent from year-ago level and 58 percent more than its P299-million target for the period.

Cusi said the airport's finances improved in view of increased passengers and flights. He said the government would like to open Naia 3 as soon as possible.

Lucio Tan's Asia's Emerging Dragon Corp. and Emilio Yap's Manila Hotel Corp. are vying to operate Naia 3. But Cusi said the government had to bid out the right to operate the new terminal.

The Air Safety Foundation Philippines said the new terminal was unlikely to open this year because of several unfinished components. The access road from Naia 3 to the two other Naia terminals, for instance, has yet to be completed.

Removal of major stumbling block seen with Manila Hotel entry into NAIA-3
— German Ambassador


More German companies are expected to invest in the country following removal of the major irritant in both countries’ economic relations with the decision of the Manila Hotel Corp. to buy out the stake of the German investor in the Philippine International Airport Terminals Corp. for the NAIA Terminal 3 for $200 million.


German Ambassador Dr. Axel Weishaupt told reporters at the launch of German Month that it is a "welcome break," calling the issue between the Fraport and the government an "obstacle" to the economic relations of both countries and a "major stumbling block" that has been removed.

"We have had a stalemate for a long time and now it is moving so it is very helpful," Weishaupt said.

Not only German investors are going to be enticed back to the Philippines but other European investors especially in the infrastructure sector, Weishaupt said.

He understood that the amount of compensation will have to be debated and the dropping of the case seemed to be a logical course.

In a speech before the launch of German Month, Oscar M. Lopez, cochairman of the Philippine-German Economic Council, expressed optimism that the long festering problem related to Fraport’s investments will hopefully be over.

"We have confirmed from Fraport that they have indeed reached agreement to transfer their rights to the venture to a Filipino group for $200 million. While no money has yet to change hands and there is still no assurance that the airport will open soon, we take comfort that a major German investor at least found a solution to its problem it could live with," Lopez said.

"The final solution to the NAIA 3 problem may now encourage German investors to come into the country," Lopez added.

talki, talki, talk, yakidi, yakidi, yak........
as long as everyone is repeating themselves, nothing will happen.

and once more.....

Vol. XIX, No. 37
Thursday, September 15, 2005 | MANILA, PHILIPPINES
The Economy

BY FELIPE F. SALVOSA II, Senior Reporter, Ma. ELOISA I. CALDERON and BERNARDETTE S. STO. DOMINGO, Reporters

Government to present reopening of airport before New York, London investment road show

The government will trumpet the opening of the mothballed Terminal 3 of the Ninoy Aquino International Airport (NAIA-3) when it faces investors in New York and London this week, Finance Secretary Margarito B. Teves said.

Speaking to reporters before leaving for the United States, the Finance chief, however, said the opening would be moved to next year instead of this year as earlier announced.

"We are working very hard to get the NAIA-3 open as soon as possible. We are targeting four to six months for the opening of that NAIA-3," Mr. Teves said.

He said the government was exploring a "number of options" to operate the new airport.

But he discounted the possibility of the facility being run by the Emilio Yap-led Manila Hotel Corp. that bought out the Filipino-German consortium that built Terminal 3, Philippine International Air Terminal Co., Inc. (PIATCo), as well as claims by businessman Lucio Tan to operate it.

The government expropriated the airport early this year and is offering to pay PIATCo $300 million in compensation.

PIATCo’s German partner, Fraport AG, had asked for $425 million and has sued the government before a World Bank arbitration body. The Cheng family’s PIATCo also haled the government to a dispute body in Singapore.

Mr. Teves maintained that Manila Hotel was "going on its own" when it bought Fraport’s shares in PIATCo in exchange for the German firm’s dropping of compensation claims.

"We are proceeding first with what we can do as a government group, so the other group which you have heard is probably going on its own. But I don’t know that, at a certain point we might or might not converge," he said.

Mr. Tan’s claim that he has the right to operate the terminal, meanwhile, will still have to be discussed by a government committee tasked to handle the NAIA-3, he added.

Mr. Tan originally proposed to build the terminal through a consortium with other Chinese-Filipino taipans, but the contract was awarded to PIATCo.

Mr. Tan’s consortium is claiming that it has the right to succeed PIATCo in operating the terminal since the Supreme Court has voided the contract.

"We are working on the legal issues first. [Lucio Tan’s claim] is something we need to talk to them but we haven’t gotten into that yet," Mr. Teves said.

But he added that the government could bid out the NAIA-3 once the legal issues are resolved.

The "preferred option," however, is for the Manila International Airport Authority to temporarily operate the facility.

The government can also fund the compensation through either bridge financing or long term financing, he said.

"I think we can only generate interest from the others if all these issues have been threshed out," Mr. Teves said.

On Wednesday, German Ambassador to the Philippines Axel Weishaupt said Fraport may drop its arbitration case against the Philippine government before the year ends if the company receives proper compensation for its investment in NAIA-3.

Fraport reportedly accepted an offer worth $200 million for its stake in PIATCo from Manila Hotel last month.

ARBITRATION

Meanwhile, a high-ranking official privy to the case proceedings at the International Center for Settlement of Investment Disputes in Washington, D. C., USA, said the government will continue to pursue counterclaims against Fraport pegged at $200 million, including damages.

The official, who requested anonymity, said the case is active even as Fraport has announced that it will drop the lawsuits against the government following its sale of stake in PIATCo.

"There is no reason why we shouldn’t [pursue the arbitration case]. Even if they [Fraport] withdrew their complaints, our counterclaims will push through," the official told BusinessWorld.

The case lodged by Fraport before the Washington-based court has cost the government "a lot of money" already as it sent lawyers to represent the country there, the official said.

"They forced us to incur expenses."

Besides, Fraport has refused to reveal the details of the supposed buyout by Manila Hotel despite a recent order of the arbitration tribunal for the German firm to furnish the government a copy of the contract, the official said.

He said hearings before the Washington-based arbitration court will begin in January with Fraport having the burden to prove how much money was put in the construction of the terminal for the government to determine its just compensation.

Fraport has been asking the arbitration court to compel the government to pay $465 million for NAIA-3, but the government earlier said it is willing to pay only up to P3 billion ($53.57 million).

"They [Fraport] have to prove how much they put in the terminal. The compensation would depend on the evidence given by Fraport," the official said.

WITHDRAW CASE

In a related development, the German embassy said Fraport is looking at withdrawing its arbitration case against the government once its investments in NAIA-3 are properly compensated.

In a television interview, he said German investments in the Philippines, which were put on hold, would start to pour in once the case is settled.

"We cannot deny that the economic relations has been dampened despite the increase in trade exchanges last year. We are looking forward to a clearing of the way," added Henning Hansen, German embassy third secretary.

Mr. Hansen said the entry of Mr. Yap into PIATCo was a welcome development. "We cannot say that this gentleman and his empire is the best, [the choice of the buyer] is up to them. A resolution by whatever means is something we look forward to."

and the story goes on and on, now the government has to deal with two parties (mr yap and mr tan) not exactly in good business terms with each other, i wonder who will win the right to operate the terminal, i dont have a guess this time coz im also having a hard time guessing the time the terminal will open

Oh Heavens! I'll open the damn airport!

^^ If only it was as simple as taking the key and opening it:D

Envoy: Fraport may drop arbitration case vs Government

German airport operator Fraport AG may drop its arbitration case against the Philipine government before the year ends if the company receives proper compensation for its investment in the Ninoy Aquino International Airport (NAIA)-Terminal 3, German ambassador to the Philippines Axel Weishaupt said Wednesday.

Weishaupt said it would be logical for Fraport to drop the arbitration if there is a settlement. He added, however, that Fraport would still pursue the case if the amount of compensation is too low.

The German company earlier sought arbitration from the World Bank in Washington to settle a dispute over compensation for the terminal. The Philippine government had rejected Fraport’s request for $425 million in compensation then seized Terminal 3 last December.

Fraport reportedly accepted an offer worth $200 million for its stake in PIATCO from Manila Hotel Corporation last month.

Weishaupt said prospective German investments in the Philippines worth millions of dollars have been put on hold pending the resolution of the case.

He added that Germany is the second largest Europen investor in the Philippines, next to the United Kingdom.

NAIA 3 started in 1994 as an unsolicited build-operate-transfer project undertaken by Asian Emerging Dragon Corp. In July 1997 the concession agreement was awarded to the Philippine International Air Terminal Co. Inc. (PIATCO). The consortium includes Pair Cargo, Philippine Air and Ground Services Inc. and Fraport AG, which owns 30 percent of the consortium.

The concession agreement would allow PIATCO to manage the terminal and collect fees, rentals and other charges. The agreement would last for 25 years and may be renewed for another 25 years, after which PIATCO will transfer the operation to the Manila International Airport Authority.

The agreement was amended in 1998 and supplemented three times until 2001. In 2002, the agreement was assailed by international airline service providers, and employees of the MIAA by filing a case before the Supreme Court to nullify the agreement.

In 2002 President Arroyo disapproved the contract, saying that she would not honor the PIATCO contracts because they were null and void.

PIATCO filed its comments before the Supreme Court in November 2002. The Office of the Solicitor General and Office of the Government Corporate Counsel also filed their comments, asking the High Court to declare the concession agreements as illegal, being contrary to the Constitution.

PIATCO filed an arbitration request before the International Chamber of Commerce of the International Court of Arbitration against the Philippine government in March 2003.

In May 2003 the Supreme Court voided the concession agreements, its amendments and supplements. In the decision, the Court also found out that the PIATCO consortium was unable to meet the required 30-percent equity or P2.75 billion out of the total project cost of $350 million or about P9.18 billion.

On January 24, 2004, the Supreme Court dismissed the motion for reconsideration of PIATCO and upheld its earlier decision to nullify the concession agreements.

Naia-3 options readied
By Lawrence Agcaoili

The government is looking at several options to put into commercial operations the moribund Ninoy Aquino International Airport (Naia) passenger terminal-3 (Naia-3) within four to six months.

Finance Secretary Margarito Teves told reporters before he left to the United States that the government was looking at either funding the operations of Naia-3 or bidding it out again to interested investors.

“We are working very hard to get the Naia-3 open as soon as possible as soon as we thresh out the legal issues. We are targeting four to six months,” he said.

Teves said operating the controversial passenger terminal through the state-run Manila International Airport Authority (MIAA) is the preferred option that the government was looking at pending legal proceedings.

He added the government might consider either bridge financing or long-term financing to bankroll the operations of the world-class passenger terminal.

“We have a number of options. We may bid it out or fund it ourselves through either bridge financing or long-term financing,” he said.

The finance chief said the government was focusing on legal issues, including the expropriation case where MIAA had paid a bond of P3 billion to expropriate and operate the terminal while the cases are ongoing.

“There are many options but we are focusing on the legal issues now. I think we can only generate interest from the others if all these issues have been threshed out,” Teves said.

The German government, meanwhile, said airport operator Fraport AG may drop its arbitration case against the Philippines if proper compensation is given before the year ends.

German Ambassador to Manila Axel Weishaupt said the “logical chain of events” calls for Fraport to drop the arbitration if there is a settlement commensurate to its investments in the airport terminal.

Weishaupt said a speedy resolution of the airport mess would be seen as a green light for prospective German investments that have been put on hold because of the “climate of insecurity” pending resolution of the case.

German embassy Third Secretary Henning Hansen said his country welcomes the entry of Manila Hotel owner Don Emilio Yap in the possible compensation deal with Fraport AG.

“We cannot say that this gentleman and his empire is the best, because whether it is Mr. Yap or another is up to them. But a resolution through whatever means is something we look forward to,” Hansen said.

AEDC’s legal right to operate Naia-3
September 15, 2005

Much has been said about the reported deal between Manila Hotel and Piatco, the beleaguered builder of Naia Terminal 3. In fact, it has been lauded by various sectors, even by those remotely concerned with the deal, as the long overdue solution to the airport mess.

On close examination, however, there is much more to this issue that what is being reported in the papers. The crux of the matter is not Manila Hotel’s overtures of partnering with government to operate Naia-3, but whether Asia’s Emerging Dragon Corp. (AEDC) — the original proponent of the airport project as early as 1996 — has a legal right over the terminal.

Controlled by taipan and PAL owner Lucio Tan, AEDC claims that since the Supreme Court voided Piatco’s contract for being an “unqualified bidder,” AEDC has the legal right to operate the airport facility. In fact, in a letter dated Sept. 1, 2005, AEDC counsel and spokesperson, former Securities and Exchange Commission chairman Perfecto Yasay said AEDC is asserting its legal right “as the legitimate and unchallenged bidder of the build-operate-transfer contract over Naia IPT III and requests for the immediate implementation of the Feb. 26, 1996 memorandum of agreement between Department of Transportation and Communications and AEDC.”

I recall, and I must say that I was privy to the unsolicited bid offer of six taipans — Lucio Tan, Al Yuchengco, Henry Sy, George Ty, John Gokongwei and Andrew Gotianum — in a conference with then President Fidel Ramos in the Philippine embassy in Beijing when FVR made his state visit to China. The unsolicited offer was for $350 million to build Naia-3. But, this was of course, not perfected and consummated because there was still the “Swiss Challenge” under the build-operate-transfer law to be observed and soon after, Piatco submitted a better offer which was approved by Ramos.

***

In plain language, AEDC said in Yasay’s letter that if there was any party which has a right to enter into a negotiated agreement to operate the air terminal, it would be AEDC. Logically and legally, a mere change of owners of Piatco does not give the latter any right to claim an airport contract that it never had in the first place.

As a lawyer myself, I believe from a legal standpoint, AEDC has the rightful claim to the terminal for a number of reasons: (1) it was the original proponent of the Naia-3 projects; (2) it had signed a memorandum of agreement with the DoTC to build the terminal; (3) the Swiss Challenge or higher bid by Philippine International Air Terminals Co. was decided void by the Supreme Court, and ergo, it’s as if Piatco’s bid did not exist; and (4) without any competitive bid, AEDC is the only party left with a standing offer to build the airport terminal.

From a policy perspective, meanwhile, it is legally justifiable for government to recognize AEDC’s claim. After all, Tan’s firm (the other taipans had since sold their shares to Tan), has suffered years of irreparable injury due to Piatco’s having “pulled the rug under AEDC’s feet,” so to speak, even when Piatco did not have any right to bid in the first place.

***

Piatco and its foreign partners — Fraport AG of Germany — can cry hoarse and turn blue in the face that they were maltreated and that their soured investments should serve as a warning to other prospective investors in the Philippines.

But, Piatco has no one to blame but itself for the loss of the franchise to operate the terminal. The bottomline is that while we need foreign investments, they must follow the laws of the host country. If not, then they must suffer the consequences. The company knew it had no financial capacity to win the bidding, but insisted just the same in conniving with government officials who now face charges before the Sandiganbayan.

Besides, the government is aware that giving Piatco the first crack in operating Naia-3 has far-reaching and more dreadful implications for the country. If the Swiss Challenge by unqualified bidders like Piatco will be allowed, then most, if not all, government flagship projects will always be held hostage.

We will never see an end to similar cases where unqualified bidders will join bidding processes if only to spite or prevent qualified companies from winning government contracts.

In fact, I know one entity which always joins biddings for government project, which it can’t win, but soon after the losing bidder blackmails the winning bidder to come across if it doesn’t like to be brought to court.

It’s time for the government to make a choice: should it partner up with Piatco, a firm with no contract, and therefore, absolutely with no right over Naia-3? Or, should it recognize AEDC which has been deprived of its legitimate right to build the airport terminal? The choice is pretty clear.

ei guys, get this... taken from philstar.com...

NAIA-3 soft opening in December eyed

The Philippine Star 09/15/2005

The government is now eyeing a soft opening of the controversial Ninoy Aquino International Airport (NAIA) Terminal 3, the Department of Transportation and Communications (DOTC) said yesterday.

At the same time, the government also plans to push through with a full opening of NAIA Terminal 3 within the first quarter of 2006, DOTC Assistant Secretary for Planning and Development Robert Castañares said in an interview with reporters.

Castañares said the Philippine government, through the Manila International Airport Authority (MIAA), would operate the terminal once they initiate a soft opening in December and a full opening next year.

The DOTC official said the government would continue to operate the terminal until the arbitration case is resolved.

Castañares said with or without the Japanese contractor Takenaka, the government would push through with the opening and operations of NAIA Terminal 3.

Yesterday, a high-level meeting was also held at the DOTC to discuss plans on NAIA 3.

However, Castañares refused to say if the pending arbitration case on the fate of NAIA was discussed.

Meanwhile, the German Embassy in Manila said that it expects Fraport AG to drop its arbitration case against the Philippines once it receives proper compensation for its investment in NAIA 3.

In a television interview yesterday, German Ambassador Axel Weishaupt said the logical chain of events would lead to the German firm’s dropping its case against the Philippine government.

However, he said that if the compensation were too low, the firm would most likely pursue the case. — Sandy Araneta, Marvin Sy

^^ im hoping because im coming home this december. I also should say that Northwest has been the family's bestfriend bridging us to pnas. Uh, saka mileage daw :lol:

^
But Northwest just filed for bankruptcy today. I wonder what the implications are for all their routes.

I don't believe anymore their pronouncements. But I hope so. When I see it open for a fact then I'll believe it.

So if Northwest is bankrupt does that mean there will no longer be a US carrier that flies to the Philippines? United pulled out years ago and now Northwest, possibly?

northwest is just filing for ch. 11 bankruptcy protection, which will put it into the same state PAL is in right now. No biggie.

Sayang at hindi na aabot sa SEA Games...It's a good way pa naman to impress our neighbors...tsk tsk..ang bagal at tagal talaga ng mga proseso sa atin...

So if Northwest is bankrupt does that mean there will no longer be a US carrier that flies to the Philippines? United pulled out years ago and now Northwest, possibly?
Nah, I don't think NW would pull out of MNL due to Ch. 11 unless it's been performing badly. But also can't forget if Northwest pulls out, there's technically one American carrier that would still operate in Manila and that'd be Continental Micronesia. :D

Well some of our hopes to keep T1 alive seems to be warm at the moment. Now lets just hope if Tan does decide to move all ops to T1 that he'd invest in refurbishing and modernizing the place. :D

He would definitely upgrade the facilities of T1 if the airline decides to transfer its domestic and international operations under one roof.

NW's MNL route is very lucrative for the company because of the hordes of Pinoys living here in the US, I'm pretty sure they won't drop the route since it makes money for them.

Is there any chance that Tan will invest in the expansion and progress of DMIA for the future of his beloved airlines?

hey everyone, i've been gone for a little while, I kinda stumbled upon GreyX's Q on NWA bankruptcy, I guess it will work just like United airlines, as Chapt 11 helps in restructuring of any company, I'm sure NWA will not drop it's Manila route. If it's chapter 13, then they will have to give up the whole company but then I'm sure other US airline companies will pick up it's right. I have been earning mileage from NWA and already had 4 free airfare to asia and elsewhere because of it so hopefully they won't totally fold on me...

Northwest sucks anyway. THeir stewardesses are rude and unfriendly as hell.

^^ You're one helluva bitter person. Almost everything sets you off!

^^ :lol:

^^ You're one helluva bitter person. Almost everything sets you off!
Well we all can't be as cheerful as you can't we? If we were all alike in our experiences and opinions it would be one boring world. I find your comment as a personal attack. I comment on the issues here not on the forumers.

NW's MNL route is very lucrative for the company because of the hordes of Pinoys living here in the US, I'm pretty sure they won't drop the route since it makes money for them.

So true. That's where I book my flights, if not Asiana. I'm not even familiar with Continental Micronesia.

^^ :lol:

tawa ka ng tawa d'yan tigidig. palibhasa wala ka pang nakakabangga rito sa forum. wala pa nga ba?

Well we all can't be as cheerful as you can't we? If we were all alike in our experiences and opinions it would be one boring world. I find your comment as a personal attack. I comment on the issues here not on the forumers.

That wasn't originally meant as a personal attack, and I apologize if you felt like it was.

So true. That's where I book my flights, if not Asiana. I'm not even familiar with Continental Micronesia.

Continental Airlines operations in Asia and the Pacific are handled by Continental Micronesia. You can island hop from Manila (via the Pacific islands in between) to the US mainland.

Ok, that's good to know. Especially the island-hopping part. :)

si ate marites.. lahat na lang inaaway... hahaha :runaway:

Northwest sucks anyway. THeir stewardesses are rude and unfriendly as hell.

I've been flying with NWA for years ,I can safely say it's been 20 years for me, i only had one incident where a flight attendant was half rude to me, but all throughout these years I have never had any problems with them. So, maybe it was just one of those rare moments where you happen to run into someone with a bad mood. I don't know if anybody else feel the same way here.

Fortunately, I haven't had that experience when a flight attendant is rude towards me in any of the flights I've taken. Baka naman tinawag mong "stewardess". I think they get offended by that term.

I guess this discussion belongs in the Airplane and Airline thread and not here. But anyway, I really dislike NWA... either for international travel or domestic travel in the USA. I think their service is horrible and their food is substandard. My favorite airlines to fly to the Philippines are Philippine Airlines (for convenience reasons-- one way, non-stop from SFO to MNL and good food too), Japan Airlines (simply superb) and the Korean airlines, Asiana and Korean Air. I think the Asian airlines do passenger service so much better than NWA.

In American domestic travel, I found that NWA was always late and the inflight service was extremely lacking. I prefer the budget airline Jetblue.

So true. That's where I book my flights, if not Asiana. I'm not even familiar with Continental Micronesia.

I still remember their commercial jingle in the Philippines from the 80s. "it's continental air micronesia... the best la la la la... for your day" (or something)

si ate marites.. lahat na lang inaaway... hahaha :runaway:
what?!!! ako nga inaaway eh. I think it's a mob mentality since I'm newer and If you disagree with the flow then you're it..
:lol: you need someone to stir the Pot he he

I've been flying with NWA for years ,I can safely say it's been 20 years for me, i only had one incident where a flight attendant was half rude to me, but all throughout these years I have never had any problems with them. So, maybe it was just one of those rare moments where you happen to run into someone with a bad mood. I don't know if anybody else feel the same way here.
Well I've talked to many Filipinos who feel the same way. Maybe rude is not the word but more snooty. But they fly with NW anyways since they're cheaper than Pal. Asian carriers do have better customer service.

what?!!! ako nga inaaway eh. I think it's a mob mentality since I'm newer and If you disagree with the flow then you're it..
:lol: you need someone to stir the Pot he he

Hoy! Huwag ninyong pagtutulungan si Marites hah? Konti na lang nga kami ditong girls. Ok, yan Marites. Fight lang. Elibs ako sa "balls" mo.

Continental Airlines operations in Asia and the Pacific are handled by Continental Micronesia. You can island hop from Manila (via the Pacific islands in between) to the US mainland.
Usually the routing is MNL-GUM (Guam on a 737-800) and then GUM-HNL (Honololu, usually 767-400) and then on to the US mainland. Northwest and Continental are part of Skyteam along with Korean which makes my choices pretty good for my frequent flyer mile account. :D

Hoy! Huwag ninyong pagtutulungan si Marites hah? Konti na lang nga kami ditong girls. Ok, yan Marites. Fight lang. Elibs ako sa "balls" mo.

ako din... todo ang suporta ko sa yo ate Marites!!! basta wag mo lang akong aawayin... hehehe

ako din... todo ang suporta ko sa yo ate Marites!!! basta wag mo lang akong aawayin... hehehe
Wag kang magalala susunod ka.... :crazy2:

tawa ka ng tawa d'yan tigidig. palibhasa wala ka pang nakakabangga rito sa forum. wala pa nga ba?

c aling marites palang :lol:

ok enuff said, lets lean bac to this thread, hehehe
N hirs what to salivate w/

NAIA 3 opening to boost travel, tourism, investment - ASTA prexy
By EDU H. LOPEZ

The country’s travel agencies are strongly supporting the government’s move to open the world-class Ninoy Aquino International Airport (NAIA) Terminal 3 following the recent purchase by Manila Hotel of the equity of SB Airport Investments, Inc. and Sojitz Corp. of Japan and Fraport AG in PIATCO.



"We endorsed the move of Manila Hotel in buying Fraport AG’s equity in PIATCO because this would pave the way for the opening of the state-of-the-art NAIA Terminal 3," says Sony Lopez Gonzalez, president of the Tourist Information Bureau, Inc. (ITB).

Gonzalez, who is also president of the American Society of Travel Agents (ASTA)-Philippine Chapter, believes that the opening of the NAIA Terminal 3 will boost travel and tourism in the country.
"This will bring in more tourists into the country, attract more investments, and encourage more airlines to fly to Manila, thus, promoting the Philippines as one of the best destinations in Asia," says Gonzalez.
"Your first impression when you land in a country is the airport. We want an airport that you can be met decently with state-of-the-art facilities and amenities."

She expects that the opening of NAIA Terminal 3 will boost tourism in the country. "With more airlines coming in, there will be more tourists."

ASTA-Philippine Chapter is an affiliate of the world’s largest and most prestigious association of travel professionals.

With more than 69 members, ASTA-Phil Chapter plans to arrange more familiarization tours at lower cost for its members, undertake more activities and promotional programs to encourage for foreign tourists to come to the Philippines.

As the world’s most influential trade association, ASTA and its affiliates have over 26,000 members in more than 170 countries.
ASTA is involved in educating its members, monitoring the travel industry to identify "scam" operators, ensuring a level playing field and fair competition, advertising and public relations effort and consumer awareness.

Very true.

Also , would'nt worry too much about NW, chapter 11 is a reorganizational measure unlike chapter 7 which is liquidation. They've 1.5 billion in cash and their asian routes are most lucrative in their operation. They'll probably use this to get rid of their pension obligations, lower their opex by breaking their unions. Non pleasant stuff but such is the airline industry.

how can NW have 1.5 B $ in cash and escape to chapter 11 ?

I am now so hysterical on when this project would open?!?!!?

I am now so hysterical on when this project would open?!?!!?

oh, I strongly suggest that you avoid any emotional ties with this project. :D

how can NW have 1.5 B $ in cash and escape to chapter 11 ?
By claiming negative cashflow, therefore it's just a matter of time before cash burn will make sure the they run out of money. It's actually prudent to do this since they will obviously need to restrucutre their operations and finances. In fact they've said they need to lower by 1.5 buillion a year in opex in order to stay viable. At this point they don't have to pay any old liabilities immediately just the present ones so they can ask for lower salaries (their number one agenda), cut into pensions or pension funds allocated, try to lower capital costs. Ironically this does not neccesarily preclude getting new planes which they are as they will claim this is neccesary for their business plan.

oh, I strongly suggest that you avoid any emotional ties with this project. :D
Amen, I finally gave up on it more than a year ago. :D

Open, open, open. Na nooo.

i was wondering about this.. tsk tsk tsk.. taken from inq7.net..

Airlines need 6-month lead time to transfer to NAIA 3

First posted 07:44am (Mla time) Sept 20, 2005
By Nikko Dizon
Inquirer News Service



Subscribe to Breaking News alerts, send ON EXTRA BREAKING to 2207 for Globe, or send EXTRA BREAKING to 386 for Smart.


THE AIRLINE Operators Council (AOC) Monday reiterated that the 29 foreign carriers operating at the Ninoy Aquino International Airport (NAIA) Terminal 1 would need six months to prepare for their transfer to the NAIA Terminal 3.

In an interview, Santiago Medrana III, AOC vice president, also stressed the foreign carriers operating at the NAIA should be informed by authorities of the latest developments on NAIA 3.

“It’s not so much about the contract, but the money that we would be spending on the airport. We are ready in six months, but we should be given a guarantee that all legalities are already settled so that our money won’t end up just sitting there,” Medrana told the Inquirer in a phone interview.

The Inquirer sought the AOC’s reaction to the announcement of Manila International Airport Authority (MIAA) general manager Alfonso Cusi last week that the MIAA aimed to have a test run of the mothballed NAIA 3 in December, and then have it operational by January. MIAA’s schedule obviously falls short of the airlines’ six-month requirement.

Medrana said it would take the airline companies six months to complete the paper work, as well as the fit-outs for their new offices, and test run their equipment and computer systems.

Medrana added the airlines had not yet been informed by Cusi that the MIAA would be giving the airlines their lease contract agreements by end of this month.

Medrana said that two years ago, the AOC estimated that the foreign carriers would have to spend a combined P500 million to transfer to NAIA 3 from the aging NAIA 1. By now, he said, the cost had risen.

Medrana also said the airlines need to be informed by the MIAA and the Manila Hotel Corp., which bought the NAIA 3 shares of German company Fraport AG, on the status of the airport facility.

“We (airlines) are waiting for the MIAA and the new owners of PIATCo (Philippine International Air Terminals Co. Inc.) to explain the situation to us,” he said.

i should have posted this first.. hahahah.. taken from abscbn-news.com.. at least we have a set date.. dec for the soft opening, jan for the grand opening.. sounds good to me.. i hope everything gets ironed out by then.. especially for the airlines who would be moving operations from NAIA 1 to NAIA 3

Lease contracts for NAIA 3, airlines set

By JONATHAN M. HICAP
The Manila Times Reporter

The Manila International Airport Authority will issue this week the much-awaited lease contracts to 29 international airlines that will transfer to the controversial Ninoy Aquino International Airport’s Terminal 3.

Airport General Manager Alfonso Cusi told The Manila Times that the operations of NAIA 3 will start January next year following dry-runs in December.

According to a NAIA 3 source, the government will run the new terminal before deciding whether or not to bid out the operation and management of the terminal to a private group.

Another source said the MIAA will sign an agreement with Takenaka Corp. of Japan this week for the completion of the airport and assessment of vital systems. Reports said Takenaka will be paid $50 million to go on board and finish the terminal.

Cusi said the lease contracts have new provisions but they contain the same lease rates proposed earlier this year to the airlines as payment for the use of the facility.

The lease contracts replace the reservation agreement issued by MIAA to airlines in April. The airline representatives had rejected the agreement and instead asked for a formal contract before they transfer to NAIA 3.

In April four airlines—Northwest, Korean, Eva Air and China Airlines—signed the reservation agreement.

Cusi said they had decided not to wait for the Supreme Court decision on the expropriation case filed by the government against the Philippine International Air Terminals Co. Inc., builder of the terminal.

The Airline Operators Council and Board of Airline Representatives had said airline-members needed a lead time of six months from the time the lease contracts are signed within which to make their plans for their transfer to the new terminal.

They need a lead time to build new airline counters and lounges at NAIA 3, train ground handlers and service providers and install and test communications equipment.

what?!!! ako nga inaaway eh. I think it's a mob mentality since I'm newer and If you disagree with the flow then you're it..
:lol: you need someone to stir the Pot he he

I think NWA FA are mostly more strict with reinforcing FAA rules on passengers and americans are more forward (very confident and cockie by nature) comparing to asians. I've really had about a couple of people complained about NWA that i've heard of. As far as flights always being delayed, there are some truth to it but in my experience it's like 2 out of 10 both international and regional flights, I've had real bad experience with Delta comparing to all other US airline carriers. With an international flight, my complaints with NWA is that they need a newer aircraft as each time I would fly internationally with them most of it are real old aircrafts, PAL domestics have real nice and brandnew looking A340/330 which i like because of the longer leg room and wider seats. I've tried PAL's 747-400 Ceb-MLA flight, now that one was real old looking. I just never tried PAL international yet so I can't say anything about the food and service there Boyhaha, I enjoy PAL Domestic as far as i'm concern.
Going back to the main topic here, I'm glad that there is some hope finally with regards to the opening of Terminal 3. Hopefully the government and eventually manila hotel or any private company who will run this airport will do better with the management aspect of it, encorporate a good and efficient domestic/inter'l passenger transfers.

oops, I messed up again. :sleepy: sowwy folks !!!

New airport to start operating in 4 months: Arroyo
Tuesday, September 20, 2005

MANILA -- President Gloria Macapagal-Arroyo said she expects the Ninoy Aquino International Airport (Naia) Terminal III to open in about four months.

Arroyo, in an interview over ABS-CBN News Channel's television show Impact hosted by newspaper publisher Max Soliven last Monday, said she expects Takenaka Corporation to complete its work in the Naia 3 by then.

She added that the important thing is that while the legal matters concerning the airport are being settled, the needed work in the airport in anticipation of its opening is also underway.

“There are legal matters to be ironed out. But the good news is that as these legal matters are being ironed out, the physical completion is taking
place now. So far that’s the timetable, about four months,” she said.

Executive Secretary Eduardo Ermita earlier said Naia 3 is already 97 percent complete.

He added that the Philippine Government is now waiting for the resolution of the pending legal cases before making any other decisions concerning the
airport.

The Philippine International Air Terminals Co. (Piatco) haf filed an arbitration case against the Philippine Government with the International Chamber of Commerce in Singapore in a bid to recover large sums of money that it supposedly invested in the terminal.

Fraport AG, the German partner of Piatco, has also filed its own case against the government before the International Center for the Settlement of Investment Disputes in Washington to recover its own investments.

^^ i think they should just burn the damn thing than give people false hopes...

Maybe this is it Coke, who knows? At least construction wise its 97% done.

^^ *sigh* the real problem is, everyone wants to profit from it...they want a slice of the cake...

^^ i think they should just burn the damn thing than give people false hopes...

I wonder how much it would cost to burn it. :jk:

I wonder how much it would cost to burn it. :jk:


probably just a few buck for gasoline and lighter??? :runaway: :jk:

I wonder how much it would cost to burn it. :jk:

...and who knows? there may also be a delay in burning that facility LOL!

^^ LOL.

Open, open, open. Na nooo.

If you can just will it to be so. Abrakadabra. Open Sesame! Open NAIA 3!

You know what would be the deadline to kill us all... "Terminal 3 Finally Opens"

:eek: :master: to the lord

Or they can announce it like this: "One Day Only! Open today, close again indefinitely tomorrow!" :lol:

:sleepy: -- Oops! Deleted. Double post. -- :sleepy:

It'll be more interesting to know when will the airlines sign their contracts or has it even been drafted for the airlines to look at. Airlines still need to construct their offices and counters then and only then should they issue some form of timeline on the eventual opening of this terminal.

The people involved in these terminal are all a big JOKE!!

Or they can announce it like this: "One Day Only! Open today, close again indefinitely tomorrow!" :lol:
Now'd that seriously be a double whammy. ><

Federation of Philippine Industries praises Manila Hotel on NAIA-3

Link to the article (http://www.mb.com.ph/MAIN2005092445165.html)

The Federation of Philippine Industries (FPI) led by its Chairman Meneleo J. Carlos and President Jesus L. Arranza yesterday praised the "Manila Hotel group for acquiring the majority stocks in the Philippine International Airport Terminals Co. (PIATCO), builder of the Terminal 3 at the Ninoy Aquino International Airport (NAIA)."

"FPI supports this development since it will pave the way for the resolution of the impasse which has continuously hurt the public as well as the private sectors. Certainly, it will also help ease the pain and erase the stigma it has caused the country in the international and business community," Carlos and Arranza said.

They expressed the hope that the acquisition of this terminal, "which is comparable to the world’s best in terms of technology and beauty, but relegated to being a white elephant, would soon open so that it can conveniently service both local and foreign travelers."

The terminal, while complimenting the business of your famous and historic Manila Hotel, would definitely make the country more attractive to foreign investors, they added.

"In these trying times, it is indeed very patriotic for your group to fearlessly invest a huge amount of money so as to save the project as well as the dignity of the country," Carlos and Arranza said.

The Manila Hotel purchased the 30 percent equity shares of Fraport AG Frankfurt Airport Services Worldwide in the PIATCO for $200 million and of SB Airport Investments Inc. and Sojitz Corp. of Japan for $30 million.

The purchase, as described by Sen. Richard Gordon, a former tourism secretary and chairman of the Senate Committee on Government Corporations and Enterprises, is a move towards the opening of NAIA Terminal 3.

"While the country suffered a set back when the terminal lay idle for two years arising from a legal dispute over PIATCO’s contracts with the government, MHC’s buyout of the Fraport stakes solved this problem," Gordon said. (E. T. Suarez)

When is really the opening date of T3? :D

^^ too many parangal for Mr. Yap, Ive been hearing even probably our corner store, aling idang said something about mr. yap buying a large portion of naia. But when will he be projecting to open that airputa nangarat-ngarat :lol:

who's Mr. Yap?

^ sugar daddy ko

No gov’t obligation to recognize AEDC right to operate NAIA-3 — Benipayo




Solicitor General Alfredo L. Benipayo, in a letter to Atty. Perfecto R. Yasay Jr. of Escueta Yasay & Partners, dated Sept. 21, 2005, in response to Yasay’s letter to Secretary Leandro Mendoza of the Department of Transportation and Communications dated Sept. 1, 2005, in connection with the claim that Asia’s Emerging Dragons Corp. (AEDC) chaired by taipan Lucio C. Tan has a perfected and legal right to operate the NAIA International Passenger Terminal-3, said:


"We have carefully searched Philippine law, in vain, for the basis of what you claim is AEDC’s ‘vested and perfected legal right to operate NAIA-IPT III.’ What we found relevant instead, among others, is a statement in the concurring opinion of Justice Artemio Panganiban in the same Agan case, which statement we agree with. It sets forth the following proposition:

‘If the Piatco contracts are junked altogether, as I think they should be, should not AEDC automatically be considered the winning bidder and, therefore, allowed to operate the facility? My answer is stone-cold "No." AEDC never won the bidding, never signed any contract, and never built any facility. Why should it be allowed to automatically step in and benefit from the greed of another?’

"We have also searched carefully the 1996 Memorandum of Understanding (not Agreement) that we presume you were referring to between the DoTC and AEDC. We see nothing in its language to believe that there is any existing obligation on the part of Government to recognize in AEDC the right to operate the terminal."

Earlier, on April 30, 1999, First Executive Judge Alfredo C. Flores of the Regional Trial Court, National Capital Judicial Region, Branch 261, City of Pasig, ordered the dismissal with prejudice of Civil Case 66213 filed by AEDC against the DoTC, after a "Joint Motion to Dismiss" signed by AEDC Chairman Lucio C. Tan and then DoTC Secretary Vicente C. Rivera Jr., with conforme by then Executive Secretary Ronaldo B. Zamora

nayong naghahabol si mr tan tapos nang mabili ni mr yap yng controlling interests ng piatco, imo

DBP TAPPED TO PUT UP 10-YEAR FUNDS
Gov't raising P20B for Naia 3
Posted: 8:07 PM | Sept. 25, 2005

Clarissa S. Batino
Inquirer News Service

DEVELOPMENT BANK OF THE PHILIPPINES said it would raise up to P20 billion in 10-year funds for the government so it could finally operate the Naia 3 terminal.

Inquirer sources said Malacanang had asked the bank to help the government raise the amount required to complete the takeover of the Ninoy Aquino International Airport Terminal 3.

DBP president Reynaldo David admitted that the bank was putting together a group of creditors that would contribute $300-$350 million in peso equivalent for this purpose.

The proceeds, according to sources, will be used primarily to pay the group that built Naia 3 and to complete additional work on the terminal, which was estimated to cost $50 million.

"The government prefers to borrow in pesos to avoid currency risks. We are looking at a P16-billion to P20-billion in club loan. A bond issue is also being considered," David said in an interview.

The government took over Naia 3 in December 2004 but it could not operate the terminal until Philippine International Air Terminals Co. or Piatco was reimbursed of the investments it made in building the facility.

DBP's move is deemed as a strong indication of the government's intention to operate the new terminal once its petition for expropriation is finally approved by the court.

Manila Hotel Corp., which now controls Piatco, and Asia's Emerging Dragon Corp. of Lucio Tan are both claiming the right to operate Naia 3.

However, Trade Secretary Peter Favila, who is a member of the inter-agency team tasked to resolve the Naia 3 impasse, said the government had not received any formal offer from either Manila Hotel or AEDC.

"As far as the government is concerned, it will operate Naia 3 after paying Piatco as mandated by the Supreme Court," Favila told the Inquirer during a briefing Wednesday night.

As for the loan, David said the DBP and the four other member-banks of the syndicate it was forming would lend the money to the Manila International Airport Authority, operator of the Naia terminals.

"We are talking with the officials of MIAA. We want to help expedite the opening of the airport," said David.

The banks are studying the cash flow of the MIAA to see if it has the capacity to pay the 10-year loan, added David.

The airport authority reported a net income of P472 million in the first seven months, up 34 percent from year-ago level and 58 percent more than its P299-million target for the period.

The MIAA generates about P5.4 billion in revenue yearly. While the agency's revenue flow has been constant, expenditures have been going up mainly due to the upgrading of airport facilities, particularly the security system.

"We want to do it as soon as possible and especially while the market is liquid," said the DBP president.

The club loan being arranged by the DBP will take the place of the bond issue planned by the MIAA early this year.

The airport authority had asked the finance department in the first quarter to help it float about $300 million in three-year bonds. Of that amount, about $100 million would have been in pesos.

David said the DBP would have to "syndicate" the funding requirement of the government so other banks would be able to help raise the money. The required amount, he said, would be too much for the state-owned bank to finance by itself.

The DBP, he said, had started talking with potential partners for the loan syndication.

"We are preparing the papers necessary for the debt exercise. We want to do the loan as soon as possible," he said.

The new terminal was built to replace Naia 1, which was more than two decades old. Naia Terminal 3 is designed to handle 28 aircraft at any given time and 13 million passengers a year.

so the government wants to operate the terminal and has no intention to give it to either piatco or aedc, sorry na lang kayo

Thanks Kiel, I guess that just killed everybody here.LOL Oh well, the Philippine government still plans to open it one way or another, give them the benefit of the doubt. Lets say another 10 years?? LOL

just imagine if the govt would just set aside 25-30billion pesos on its annual budget to finance one megastructure project every year w/o relying on BOT's or other forms of bank financing then what we should have had in 20 years???!! probably a best rail network from luz to mindanao, endless freeways, a network of subways at least for MM, and at least 3 grand huge intl airports, and seaports in Manila & cEbu & Davao, & 20 other superstructures!! plus still all those politics!! :)

government is contradicting itself , ginawang batas yong bot ksi walang pera ang gobyerno so they invite private entities (and that includes foreing and local investors) to fund infrastructure projects like the airport terminal, highways, toolways, railways tapos ngayong sila mag raise ng pera para mabayaran yong piatco at sila ang magoperate ng terminal

government is contradicting itself , ginawang batas yong bot ksi walang pera ang gobyerno so they invite private entities (and that includes foreing and local investors) to fund infrastructure projects like the airport terminal, highways, toolways, railways tapos ngayong sila mag raise ng pera para mabayaran yong piatco at sila ang magoperate ng terminal

it is supposed to be Build Operate and Transfer but the fraport and piatco interpreted it as Bribe Operate and Transfer and the government interpreted it as Build Oust and Takeover

it is supposed to be Build Operate and Transfer but the fraport and piatco interpreted it as Bribe Operate and Transfer and the government interpreted it as Build Oust and Takeover

:hilarious :hilarious :hilarious That was funny and very witty of you! :okay: