NAIA 3 soft opening

scheduled February 2008

By Jonathan M. Hicap Reporter

The Manila International Airport Authority (MIAA) will hold a soft opening of the
mothballed Ninoy Aquino International Airport Terminal 3 in February 2008, as repair
work progresses based on the new agreement between the agency and the Japanese
contractor.

Robert Uy, MIAA executive assistant, said the new schedule is consistent with the
work schedule of Takenaka Corp., which recently agreed to repair the structural
defects of the building it constructed, including the 130-square-meter ceiling that
collapsed last year.

After the soft opening, the NAIA 3 will be partially operational by the first quarter of
2008. The full opening will then during the first half, Uy said.

NAIA 3 is designed to handle 13 million passengers a year.

The new schedule comes on the heel of a landmark decision by the World Bank’s
International Center for Settlement of Investment Disputes (ICSID) dismissing the
complaint filed by German airport operator Fraport AG against the Philippine
government for its expropriation of NAIA 3.

Fraport filed the case in September 2003 with the ICSID in an effort to recover its
investments amounting to $425 million. It is a major shareholder of the Philippine
International Air Terminals Co. Inc. (Piatco), which bid for and won the right build
NAIA 3 under a build-operate-transfer scheme.

MIAA General Manager Alfonso Cusi said the arbitration body declared that the
Philippines did not violate any international trade treaty, rendering itself without
jurisdiction over the dispute.

The Supreme Court nullified Piatco’s concession agreement after ruling that it had
committed numerous violations.

“With this big victory, we assure local and international investors that those who wish
to partner with the MIAA in the operation and economic activities related to NAIA 3,
as well as with NAIA 1 and 2, and the Diosdado Macapagal International Airport, will
get full protection of the law regarding their investments,” Cusi said.

Fraport, however, is not letting go its claim. It posted a statement on its website,
saying the decision “requires in-depth legal examination” which it intends to do.

“Subsequently, Fraport will then be able to decide on its further course of action,” it
said.

The expropriation case on the NAIA 3 property is still pending with Branch 117 of the
Pasay City Regional Trial Court.

Last year the Philippine government paid P3 billion to Piatco as initial compensation
for the NAIA 3. Of the amount, Fraport received $29 million. It owns 30 percent of
Piatco.

Uy said the ICSID ruling had a positive impact on the ongoing negotiation between
Takenaka and MIAA on the repair of the NAIA 3.

Officials of the two parties are now negotiating on four aspects: structural integrity,
testing and commissioning, construction work agreement and oversight committee
composition and powers.