Philippine government plans to operate new terminal building

Airline Industry Information, Dec 24, 2004

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The government of the Philippines has said that it is determined to take over and run the new terminal building at Ninoy Aquino International Airport from the company originally contracted to build it.

The country's President Gloria Macapagal Arroyo said that the government was now in possession of the terminal and that it would take steps to complete and open the building within the next six months subject to meeting the required safety standards.

A judge has declared that the company contracted to build the terminal, Piatco, did not have enough money to complete the project when the contract was signed, which the government said made the contract void. Piatco - partly owned by German airport operator Fraport AG - is seeking to regain the contract through arbitration with the International Chamber of Commerce in Paris, France, reports The Associated Press.

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