Vol. XXI, No. 216 [ Business World Online ]
Wednesday, June 4, 2008 | MANILA, PHILIPPINES
THE GOVERNMENT will initially operate the mothballed Ninoy Aquino International Airport Terminal 3 (NAIA-3) as a domestic airport before it opens its doors to international passengers, the head of the Manila airport operator has said.
The mothballed terminal remains closed even after the
government expropriated it in late 2004. — BW File photo
Manila International Airport Authority (MIAA) General Manager Alfonso G. Cusi assured foreign businessmen that the government will open the new terminal "at the soonest possible time."
The costly airport remains closed five years after the Supreme Court declared the contract with a private firm illegal, and even after the government decided to expropriate the new terminal in 2004 to speed up its opening.
"After identifying the operability of certain sectors of the terminal through appropriate engineering tests and assessment, and raising the level of confidence on the safety of these areas, we shall pursue a deliberate strategy of partial or phased opening, starting with domestic flight operations and subsequently shifting to international flight operations on a selective basis," Mr. Cusi said in a speech before the Joint Foreign Chambers of Commerce early this week.
Mr. Cusi could not be reached to elaborate on the plans for NAIA-3.
In his presentation before foreign business chambers, Mr. Cusi said the airport authority is conducting studies to resolve issues on the NAIA-3 such as runway capacity, airline mix and accommodation, as well as terminal usage and optimization.
"On a more strategic vein, the management has been undertaking necessary research, planning and policy studies that relate to the basic issues of opening new passenger terminals, expanding terminal facilities and reorganizing airline operations within the NAIA complex and within the context of the larger national aviation system and growth options," Mr. Cusi added.
NAIA-3 was almost complete when the Supreme Court nullified the build-operate-transfer contract with Philippine International Air Terminals Co., Inc. (Piatco) in May 2003 over supposed corruption.
In 2004, the Arroyo administration decided to expropriate the terminal, leaving Piatco and German partner Fraport AG up in arms.
Some businessmen have criticized the court decision and the takeover, saying it was proof of the poor business climate in the Philippines as contracts may be overturned.
Piatco filed a case before the International Court of Arbitration of the International Chamber of Commerce in Singapore, accusing the Philippine government of violating the concession agreement. Mr. Cusi said the formal hearing will be held from March 2 to 18, 2009.
Last year, Fraport lost a separate case it had filed before the World Bank’s International Center for the Settlement of Investment Disputes. The German airport operator wanted to claim $425 million from the Philippine government for expenses in building the terminal.
The soft launch of NAIA-3 was initially set in March 2006 but a portion of its ceiling collapsed four days before the scheduled opening, raising questions on the structural integrity of the facility and further delaying its operations.
Mr. Cusi said repairs of the ceiling systems would be completed by June 30.
The MIAA engineering department is conducting an assessment of the terminal’s basic building systems to prepare it for the opening, he added.
"In the weeks ahead, the MIAA Engineering has programmed... the completion of the inspection and assessment of other systems, coordination with manufacturer’s representative for cost estimates to complete or replace system components, procurement of needed components, softwares and services, prio-ritization of systems to be completed for a possible soft opening within the next few months, and the identification of viable alternatives in case a permanent solution would take a considerable time to complete," Mr. Cusi said. — Anna Barbara L. Lorenzo
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