three-time rotary club of manila journalism awardee 2006, 2010, 2012
U.N. Media Award 2008
BusinessMirror
www.businessmirror.com.ph
A broader look at today’s business
TfridayNovember Monday, February18, 16,2014 2015Vol.Vol.1010No.No.40130
nn
P25.00 nationwide | 7 sections 36 pages | 7 days a week
APPELLATE COURT SUSTAINS RULING THAT PIATCO OWNS TERMINAL 3 UNTIL FULL COMPENSATION IS PAID
CA: Govt still can’t take over Naia 3 T
By Joel R. San Juan
HE Court of Appeals (CA) has insisted that Philippine International Air Terminals Co. Inc. (Piatco) still has the right to exercise ownership over the Ninoy Aquino International Airport (Naia) Terminal 3, until the government has released the P16billion just compensation earlier awarded to the firm by a lower court.
In a two-page resolution penned by Associate Justice Franchito Diamante, the CA’s Former Special Thirteenth Division denied the motion filed by government subcontractors Takenaka Corp. and Asahikosan Corp. seeking the reversal of its decision issued on October 20, 2014. T he appel l ate cou r t r u led last October 20 that Pasay City Regional Trial Court (RTC) Branch 117 Presiding Judge Eugenio de la Cruz “gravely abused its discre-
tion” in allowing the government to deposit in an escrow account $371.43 million, or P16 billion, and imposing conditions for its release to Piatco. The said omnibus order was issued pursuant to the decision dated May 23, 2011, of the RTC in Pasay City, ordering the government to pay Piatco just compensation in the amount of $175,787,245, less the proferred value (P3,002,125,000). Continued on A9
U.S. ECONOMY SEEN TO TAKE MINImAL HIT FROM PORT MESS
O
n any given day, up to a dozen ships handle more than $1 billion worth of goods in the mammoth ports of Los Angeles and Long Beach, the busiest seaport of the US. Thousands of trucks carry off 40 percent of the nation’s incoming container cargo each year, feeding into an extensive highway and rail network that brings electronics, cars and toys to consumers and businesses throughout the nation. But, despite the enormous volume of goods flowing through the ports in San Pedro Bay, and a long-simmering labor dispute that threatens a shutdown of 29 West Coast ports, economists and trade experts said closings would have very little effect on the broader US economy. That’s because the trade of goods through US ports
represents only a relatively small fraction of the nation’s total economic output. Although a shutdown would create interruptions and higher costs for businesses relying on trade with Asia, experts said those losses would be offset by greater demand at other ports or for airlines moving freight. “There are winners and losers, and that’s where the rub is,” said Christopher Thornberg, a founding partner of Beacon Economics in Los Angeles, who has studied previous local port shutdowns. “The ports of LA and Long Beach are a convenient source of moving stuff in and out of our economy. Now people are inconvenienced. But inconvenience has never brought down an economy.” See “U.S. economy,” A2
PESO exchange rates n US 44.3960
MEDICINE BUDDHA A temple worker cleans the statue of the Bodhisattva. Commonly called by Filipino-Chinese as the Medicine Buddha, Bodhisattva is believed to cure illness of suffering using his teachings. Located near Chinatown in Manila, the Sen Guan Temple (Chinese Temple) is expected to draw tourists as the Chinese New Year approaches. NONIE REYES
MNTC may spend another ₧5B to extend Nlex to Tondo
FRANCO: “Right now, Segment 10 will end in C-3, and we need to further extend it to R-10. It was part of the original Segment 10. But when we designed the alignment, we thought that portion from C-3 to R-10 could accommodate the traffic along the existing road.”
By Lorenz S. Marasigan
T
he Manila North Tollways Corp. (MNTC) is planning to further extend the North Luzon Expressway (Nlex) all the way to Tondo, Manila, a move that would require it to invest P5 billion more into the thoroughfare. Specifically, the toll-road arm of Metro Pacific Investments Corp. is seeking to extend Segment 10 of its multibillion-peso Harbor Link initiative. The said alignment is still at the early stage of construction, and
is expected to be completed in 2016. “Right now, Segment 10 will end in C-3, and we need to further extend it to R-10. It was part of the original Segment 10. But when we designed the alignment, we thought that portion from C-3 to R-10 could accommodate the traffic along the existing road,” MNTC President Rodrigo E. Franco said in an interview. “But, with the traffic now, the road will not accommodate the congestion, so we need to build an additional 2 or 3 kilometers worth about P5 billion.” He said his company aims to
start the construction of the extension within the year, which would prompt his group to tap the debt market for capital. “If that project starts within the year, then we need to borrow. But we haven’t decided yet as to the instrument. Still, we are looking at the same options: bank loans and capital markets,” Franco said. Segment 10 is a 5.65-kilometer elevated alignment that will link the expressway and MacArthur Highway to Manila’s Port Area district. Continued on A2
n japan 0.3732 n UK 68.3343 n HK 5.7261 n CHINA 7.1086 n singapore 32.7380 n australia 34.3888 n EU 50.6336 n SAUDI arabia 11.8342 Source: BSP (13 February 2015)