Metro Manila (CNN Philippines) — Voting unanimously, the Supreme Court (SC) ordered government to pay airport contractor Philippine International Air Terminals Incorporated (PIATCO) for its takeover of the Ninoy Aquino International Airport (NAIA) Terminal 3.
The announcement on Wednesday (September 9) said the tab was more than $267 million plus interest.
The court pegged interest at 12% per year — from September 11, 2006 until July 30, 2013.
The amount will also earn 6% per year based on a Bangko Sentral circular, from July 1, 2003 until full payment of the just compensation.
The government has taken over the facility, but the court points out it can only do so after it fully pays PIATCO.
Now, to avoid confusion in carrying out its ruling — the court clarified that the full payment of just compensation is not a requirement for government to operate the terminal — or what it called taking of property.
The court explained, “taking of property” was different from transfering the property title from the private owner to government.
In 2003, the high court nullified the contract of PIATCO and its German partner and airport builder Fraport because of company ownership requirement issues.
The court denied PIATCO’s appeal in 2004.
