BAGUIO CITY—The Supreme Court (SC) has affirmed its decision issued last year directing the government to compensate the Philippine International Air Terminals Co. Inc. (Piatco) for the expropriation of the Ninoy Aquino International Airport Terminal 3 (Naia 3) in the amount of more than $510 million as of December 2014.
At a news briefing, SC Spokesman Theodore Te said the magistrates made the ruling during their regular en banc session.
“The Republic is hereby ordered to make direct payment of the just compensation due to Piatco…,” the Court said in a resolution.
The Court denied Piatco’s partial motion for reconsideration seeking an additional compensation in the amount of $107 million from the government.
However, it partly granted the motion for reconsideration (MR) filed by the government by declaring that the full ownership over the Naia 3 will be transferred to the government upon full payment of the just compensation.
The Court has fixed the principal amount of just compensation to $326,932,221.26 as of December 21, 2004.
It added that the amount of $267,493,617.26, which is the difference between $326,932,221.26 and the proffered value of $59,438,604.00, shall earn a straight interest of 12 percent per annum from September 11, 2006 until June 30, 2013, and a straight interest of 6 percent per annum from July 1, 2013 until full payment.
The Court has computed the total interest from September 11, 2006 to December 2014, which amounted to $242,810,918.
In its September 2015 ruling, the Court partially reversed the August 22, 2013 amended decision, and the October 19, 2013 resolution of the Court of Appeals which modified the May 23, 2011 decision of the Regional Trial Court in Pasay in connection with Piatco’s claim for just compensation.
The RTC in Pasay’s decision ordered the government to pay just compensation to Piatco in the amount of $116,348,641 and directed the government, and subcontractors Takenaka and Asahikosan to pay the commissioner’s fees in the amount of P1.7 million.
The CA’s modified decision, on the other hand, fixed the just compensation for Piatco to $300,206,639 less $59,438,604 proffered value or the net sum of $240,786,035 with legal interest at 6 percent.
The SC’s new ruling states that the amount of $267,493,617.26, which is the difference between the principal amount of just compensation and the value shall earn a straight interest of 12 percent per annum from September 11, 2006 until June 30, 2013, and a straight interest of six percent per year from July 1, 2013 until full payment.
In its MR, the government argued that Piatco is not entitled to receive the amount of $326.93 million as just compensation for the construction of the airport terminal.
It also asked the SC to delete the award of interests to Piatco in the amount of $242,810,918.54 and to deduct the amount of $113,944,044, representing non-compliance with contract specifications by Piatco from the principal amount of compensation due.
The MR also sought to fix the just compensation for Piatco at $163,959,441 less the proffered value of $59,438,604 already paid to Piatco.
Furthermore, it pointed out that to impose a 12-percent interest rate would be tantamount to allowing Piatco to profit by its own misdeeds.
Solicitor General Florin Hilbay noted that, while the government is willing to pay just compensation, the Court should not overlook that there are other claimants who are interested in a portion of just compensation.
Among these claimants were Fraport, an equity investor of Piatco for the Naia 3 project; and Takenaka and Asahikosan, the subcontractors that actually built the Naia 3 facility.
Fraport has sued the government several times before the international arbitral tribunal while the dispute between Piatco and Takenaka and Asahikosan is still pending before the SC.
Thus, the Office of the Solicitor General said, the SC should declare that any claim by Fraport, Takenaka and Asahikosan is enforceable only against the money to be paid by the government to Piatco.
It added that upon payment of just compensation, the Court should also award full ownership of the airport facility to the government free from any obligations to any of the claimants.
The Court also ordered the government to defray the expenses of the court-created Board of Commissioner amounting to $3,500,00.