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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 96 - 2004
ADMINISTRATIVE ORDER NO. 96 -
DISSOLVING THE CABINET OVERSIGHT COMMITTEE ON THE NINOY AQUINO
INTERNATIONAL PASSENGER TERMINAL III AND FOR OTHER PURPOSES.
WHEREAS, on June 25, 2003 Administrative
Order No. 75 was issued by the President of the Philippines entitled “Creating the Cabinet Oversight Committee
on the Ninoy Aquino International Passenger Terminal III and for other
purposes”;
WHEREAS, on February 26, 2003 the Philippine International Air Terminal
Company, Inc. (PIATCO) filed a Request for Arbitration against the
Republic of the Philippines with the International Chamber of Commerce
(ICC), Paris, France, asserting a variety of claims against the
Republic in relation to the “Concession Agreement for the
Build-Operate-Transfer Arrangement for the Ninoy Aquino International
Passenger Terminal III”, the “Amended and Restated Concession
Agreement”, and three (3) supplements thereto, all of which have been
held to be null and void ab initio by the Supreme Court of the
Philippines in the cases of Demosthenes D. Agan, Jr., et al. V. PIATCO,
et al., G.R. No. 155001; Salacnib F. Baterina, et al. V. PIATCO, et
al., G.R. No. 155547; and Severino C. Lopez, et al. Vs. PIATCO, et al.,
G.R. No. 155661 decided on May 5, 2003, PIATCO’s et al., Motion for
Reconsideration having been denied “with finality” on January 31, 2004;
WHEREAS, on September 17, 2003 Fraport AG Frankfurt Airport Services
Worldwide (Fraport) filed a Request for Arbitration against the
Republic of the Philippines with the International Centre for
Settlement of Investment Disputes (ICSID) in Washington, DC alleging,
among other things, that the Republic has expropriated the investments
of Fraport in NAIA Terminall III in alleged violation of the
Philippines-Germany Bilateral Investment Treaty signed on 17 April 1997;
WHEREAS, the President of the Philippines approved the recommendation
of the Solicitor General of the Philippines that all proposals and
suggestions concerning the resolution of the disputes which have been
brought before the ICC and the ICSID shall be conveyed to the
Government of the Republic of the Philippines and discussed only on a
lawyer-to-lawyer basis, that is, on the basis of discussion and
communication between and among, on the one hand, the Solicitor General
of the Philippines, Justice Florentino P. Feliciano and White and Case;
and on the other hand, the counsel of record of PIATCO and Fraport;
WHEREAS, evidence has emerged concerning numerous deficiencies and
deviations from the plans and specifications of the NAIA Terminal III
set out in the underlying bid documents and concerning failure of
PIATCO to submit the detailed engineering drawings and plans of the
NAIA Terminal III to the Manila International Airport Authority (MIAA)
for the approval of the MIAA, as well as to the Japan Airport
Consultants Inc. (JAC) the Quality Assurance Surveyor, resulting in
serious doubts about the structural soundness and safety and compliance
with specifications of the still incomplete NAIA Terminal III in its
present condition;
WHEREAS, PIATCO has refused to open its books to the Government of the
Republic such that the latter is unable to determine what has in fact
been reasonably and lawfully spent on the still incomplete NAIA
Terminal III;
WHEREAS, on January 30, 2004 the Republic filed its Answer to the
Request for Arbitration of PIATCO in the ICC, Paris;
WHEREAS, the arbitral tribunal in ICSID, seized with the Request for
Arbitration filed by Fraport, has now been constituted and proceedings
there have now commenced;
WHEREAS, as a result of the foregoing, it is essential that the
Government of the Republic protect the safety and security of potential
users of the NAIA Terminal III including passengers, airlines and NAIA
staff as well as the interest of the Republic before the international
arbitral for to which PIATCO and Fraport have resorted;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
Section 1. The Cabinet Oversight Committee on the NAIA Terminal III, created by
Administrative Order No. 75 dated 25 June 2003, and consisting of the
Secretary of Trade and Industry as Chairman, the Secretary of
Transportation and Communication and the Secretary of Tourism as
Members, is hereby dissolved.
Sec. 2. The Cabinet Oversight
Committee shall render its final report to the President within seven
(7) days from the date of effectivity of this Administrative Order.
Sec. 3. All reports, records of
proceedings and all documents of any kind whatsoever received, issued
or collected by the Cabinet Oversight Committee shall forthwith be
transferred to the Executive Secretary, Office of the President.
Sec. 4. This Administrative
Order shall take effect immediately.
DONE, in the City of Manila, this 1st day of March, in the year of Our Lord, Two Thousand and Four.
(Sgd.)
GLORIA MACAPAGAL-ARROYO
By the President:
(Sgd.)
ALBERTO G. ROMULO
Executive
Secretary
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Since 19.07.98.