The Philippine Online Chronicles

The nine-year arbitration case between the Philippine government and the Philippine International Air Terminal Corp. (Piatco) is over, paving the way for full operations in Ninoy Aquino International Airport Terminal 3.

Piatco, in a 27 December 2011 manifestation, formally withdrew its second application to discount an earlier ruling of the International Chamber of Commerce (ICC), which dismissed Piatco's claims against the Philippine government.

In February 2003, Piatco sought arbitration before the ICC in order to enforce its concession agreement with the Philippine government for the construction of NAIA Terminal 3. The agreement authorized Piatco to construct the USD 650 million NAIA 3 and allowed it to operate the terminal over the 25-year concession period.

Prior to arbitration, the Supreme Court declared the agreement null and void for having been “amended and re-stated” without National Development and Economic Authority approval.

After the withdrawal, the ICC awarded the Philippine government USD 6 million in arbitration costs. Manila International Airport Authority (MIAA) general manager Jose Angel Honrado said in a statement yesterday that the Singapore-based ICC's decision in favor of the Philippine government is “final and executory”.

Piatco and investor Fraport AG Worldwide services have previously been charged for violating the Anti-Dummy Law.

The terminal, which was created to alleviate traffic from the decrepit Terminal 1, has been expected to be operational several times in the past. The terminal is expected to be fully operational next year.

The upcoming movie The Bourne Legacy recently shot scenes in the partially operational airport.