The Philippine government moved dramatically on Tuesday to break a two-year deadlock over a new airport terminal, sending police to seize it from a consortium led by Germany's Fraport AG after winning a court order. The dispute over the state-of-the-art terminal at Manila's international airport, which has stood idle for two years, has been the most high-profile example of the perils faced by foreign investors doing business in the corruption-prone country.
Fraport issued a statement declaring the seizure illegal and saying that it would seek damages from Manila.
"Fraport considers the actions of the Philippine government as being a blatant violation of the law," the statement said.
Earlier, the Manila government's executive secretary, Eduardo Ermita, told a news conference that President Gloria Macapagal Arroyo had ordered the completion of the airport's facilities in order for it to open in six months.
"NAIA 3 (Ninoy Aquino International Airport Terminal 3) belongs to the Filipino people and the president has ordered its expropriation in accordance with the law," he said.
Trade Secretary Cesar Purisima said the government could immediately seize the terminal after filing the case at a local court as it had paid a deposit of three billion pesos ($53.6 million) as a downpayment.
After a judge signed a writ of possession in favour of the government, an official from the PIATCO consortium allowed the airport manager and transport officials to enter the terminal.
They were accompanied by about 150 heavily armed police.
Terminal 3, designed to handle 13 million passengers per year, had been due to open late in 2002 but the Supreme Court invalidated the contract in May that year.
Comments
Comments are closed.