The Supreme Court of the Philippines has ruled that the Philippine government must pay building consortium Piatco US$510m in compensation for the construction of Terminal 3 (T3) at Ninoy Aquino International Airport in Manila.
The dispute arose after the Philippine government declared the concession contract with Piatco, in which German airport operator Fraport holds a 30% stake, null and void and in 2004 took away the newly built terminal. To date, the Philippine government has not paid full compensation for Piatco’s investments, although more than 13 million passengers use T3 each year.
The amount warded takes into account a previous advance payment of US$59m made in 2006 by the Philippine government to Piatco (including interest as of December 31, 2014) in connection with the T3 project. The decision is not yet final and the parties involved may still seek legal recourse against the ruling.
