Govít in talks with Takenaka for more work at NAIA-3
S1/7 Corporate News
February 14, 2012
Gov’t in talks with Takenaka for more work at NAIA-3
THE GOVERNMENT may again tap Japanese contractor Takenaka Corp., which has complained of not receiving payment for the unfinished Ninoy Aquino International Airport Terminal 3 (NAIA-3), for more work on the facility if talks on costing go well, a Cabinet official yesterday said.
“Our negotiation with Takenaka is in good direction,” Transportation department Secretary Manuel A. Roxas III said in a press briefing yesterday.
“The $20-30 million we were previously negotiating on the costing and pricing [has been cut] to more or less on the $10 million,” Mr. Roxas claimed, referring to the payment for an additional 23 jobs that range from baggage handling system’s flight information displays, and a local area network.
“It is expected that in a couple of weeks, we will reach the best price from Takenaka and we will know if we will let them complete the construction... or the government will be the one that will execute the construction,” Mr. Roxas said.
Takenaka was the primary subcontractor of Philippine International Air Terminals Co., Inc. (Piatco), the builder of NAIA-3, which had filed suit against the government over the cancellation of its contract and the expropriation of the facility.
The NAIA-3 contract, awarded to Piatco in 1997 during the Estrada administration, was declared irregular by the Arroyo government in 2002.
Takenaka has joined in the dispute and is also seeking compensation.
However, Mr. Roxas earlier said that Takenaka might be asked to finish its job as long as the service comes at a reasonable price, according to earlier reports.
Meanwhile, in the event that the government and Takenaka will not reach into an agreement, Mr. Roxas said delivery and construction of the 23 systems would be bid out.
“The government can do the 23 systems, but we don’t have the capacity do the integration,” he said.
Mr. Roxas had said talks with Takenaka had been made possible after a Pasay City Regional Trial Court (RTC) last in October last year allowed the government to set up an escrow account for compensation determined in decision issued earlier this year.
In May, the Pasay RTC ruled the government owed Piatco $175.78 million for the NAIA-3’s expropriation, only a fifth of the builder’s claim of $846.42 million and less than half of a special Board of Commissioners’ recommendation that the consortium be paid $376.14 million.
Mr. Roxas said that the government is ready to pay the $175 million, but Piatco is still contesting the amount in court.
German firm Fraport AG, a major investor of the Piatco consortium,had said it would also claim compensation for the facility.