Monday, July 13, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE GOVERNMENT has further trimmed down estimates of what it owes the Ninoy Aquino International Airport-Terminal 3’s (NAIA-3) builder, Philippine International Air Terminals Corp. (Piatco).
In a manifestation filed before a Pasay City court last June 30, the Office of the Solicitor General (OSG) said two valuations — $186.237 million and $149.422 million — were determined based on data from Piatco.
The OSG earlier in the month pegged the government’s obligation for the facility — seized by the state in the wake of stalled compensation talks with Piatco, whose contract had been nullified by the Supreme Court due to anomalies — at around $200 million.
The OSG said court required two valuations. It used December 2002, when construction ended, and December 2004, when an expropriation case was filed.
The base valuation as of December 2002 was pegged at $300,181,541, which includes "appropriate discounts for failing structures, unnecessary space, low quality materials, and ... rectification works ..." The OSG said the final cost should be $186,237,498 "when subjected to further deductions for noncompliance..."
Using December 2004, the OSG said the government should pay only $263,366,929. Factoring in noncompliance means the figure should be reduced to $149,422,885, it said.
The valuation was prepared by Gleeds (Bristol) Partnership.
Piatco has already been paid some $53 million, which is expected to be deducted from the final valuation. — Ira P. Pedrasa
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