German govt distances self from PIATCO issue

The German government on Friday distanced itself from the million-peso claim of the Philippine International Air Terminals Co. Inc., which built the Ninoy Aquino International Airport Terminal 3 (NAIA-3) with German firm Fraport AG. “Neither the German government nor a German company are party of the expropriation trial at the Regional Pasay Court. Thus, we abstain from commenting a court decision on third parties," the German embassy said in a statement on Friday. It issued the statement after the Pasay Regional Trial Court (RTC) awarded PIATCO $176 million (roughly P7.6 billion) as "just compensation" for building NAIA 3. PIATCO is set to appeal the decision because it initially wanted a payment of $846 million. The embassy noted, however, that a negotiated agreement between all the parties involved would be the "best way out of the present impasse." It likewise said that a "fair and swift" resolution would be to encourage the international business community into engaging in long-term investments, such as Public Private Partnerships (PPP) projects. "The legal dispute may continue for years, preventing domestic and international companies to finish, manage and use the urgently needed international terminal. The Philippine Supreme Court has clearly stated that acts of ownership are only allowed until full payment of just compensation has taken place," it said. Meanwhile, the Pasay City RTC said it arrived at the $176-million payment for PIATCO taking into consideration that NAIA-3 "suffered from massive structural defects, the fact that construction thereof was never completed by defendant PIATCO, and the existence of evidence showing that funds were used [supposedly] by the defendant in irregularities that attended [NAIA-3] contract." — LBG, GMA News