THE GOVERNMENT is a step closer to gaining ownership of the disputed Ninoy Aquino International Airport Terminal 3 (NAIA-3) after it obtained court approval to deposit in an escrow account its payment for an expropriation claim on the airport.

In an omnibus order dated Oct. 11, Pasay City Regional Trial Court (RTC) Branch 117 Presiding Judge Eugenio G. dela Cruz allowed the government to deposit $175.79 million in payment to the Philippine International Air Terminals Co., Inc. (Piatco) for the expropriation of NAIA-3.

The ball is now in Piatco’s court whether or not it will execute a deed of transfer of title to the government without prejudice to a final amount of compensation as may be determined by the Court of Appeals which is handling the expropriation case.

Solicitor General Jose Anselmo I. Cadiz welcomed the court’s move.

“This is a good development towards finally resolving this running case... There is already no scintilla of doubt that the terminal facilities are fully owned by the government, as the court has upheld the motion to deposit the full just compensation in an escrow account,” he said in a statement.

Earlier this year, the same court ruled that the government should pay Piatco $175.19 million, or about P7.63 billion, for the expropriation of the airport that was constructed by Piatco. The amount, however, will be reduced by P3 billion which represents the government’s down payment before the start of expropriation proceedings.

In its recent ruling, the court imposed the following conditions before the payment will be released to Piatco:

• Piatco must submit a warranty that the structures and facilities of the NAIA-3 are free from all liens and encumbrances;

• Piatco must submit an undertaking that it is assuming sole responsibility for any claims from third persons arising from or relating to the design or construction of any structure or facility of NAIA-3 structures, if any; and

• Piatco must submit a deed transferring the title of the NAIA-3 structures and facilities to the government, without prejudice to the amount which will finally be awarded to Piatco by the Court of Appeals whereby Piatco has appealed the expropriation case.

The Land Bank of the Philippines and the Development Bank of the Philippines have been designated by the court as the joint escrow agents.

“Upon payment of the plaintiffs [government] of the said just compensation in an escrow account, this court recognizes the Republic of the Philippines’ right to exercise full rights of ownership over the [NAIA-3] structures and facilities,” the order read.

Petition dismissed

In the same order, the court dismissed the government’s petition to determine who are legally entitled to receive just compensation apart from Piatco.

The government filed the petition after NAIA-3 contractors Takenaka Corp. and Asahikosan Corp. filed just compensation claims with the court.

The court cited the Supreme Court’s 2005 decision that recognized Piatco’s ownership of NAIA-3 and that it should be compensated for expropriation.

“...(T)his case was remanded to this court merely for the determination of the amount of just compensation due to Piatco. The court cannot simply deviate from the above mandate. Moreover, the alleged disputed ownership of the Terminal 3 facilities was never put in issue before this court during the expropriation proceedings,” the order said.

NAIA-3 was set to be opened in 2002 but was stalled when then president Gloria Macapagal-Arroyo said that the government would not keep its contract with Piatco due to alleged irregularities when the project was awarded during the Estrada administration.

In 2004, the government initiated expropriation proceedings before the Pasay RTC. A year later, the Supreme Court declared the contract between the government and Piatco null and void. -- NRM

Source: Business World