Piatco offers 90-10 deal with gov’t on T3 By Conrado Ching 01/31/2011

Piatco offers 90-10 deal with gov’t on T3

By Conrado Ching 01/31/2011

Philippine International Air Terminals Co Inc. (Piatco), the consortium that built the expropriated Terminal 3 of the Ninoy Aquino International Airport Terminal 3 (T3) put forward yesterday a compromise deal in which it will operate the airport together with the government through a joint venture to settle a long dispute over the ownership of the project.

The scheme, which Piatco called a Joint Venture Agreement-Gross Revenue Sharing Scheme, offers a 90 percent to 10 percent sharing agreement in favor of Piatco that will allow the government to operate the new terminal with the cost of improvements being shouldered by Piatco and a strategic investor that it will invite into the project.

Piatco did not say whether the foreign partner it is targeting will remain Germany’s Fraport AG which is claiming some P18 billion in compensation from the government over the expropriated project. The government, during the term of former President Arroyo, managed to pay only P2.5 billion of Fraport’s total claims.

Piatco president Jennifer Bote said the proposal will allow the government to prevent any cash disbursement to allow the full operation of T3 in which the payment of the government to Piatco shall be derived from daily revenues from the commercial operation of the terminal for a specific period..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/headlines/20110131hed6.html