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Sep 5, 2017 @ 21:02

Pagcor nixes PAL’s bid to expand NAIA 2


The Philippine Amusement and Gaming Corp. said Philippine Airlines (PAL) is prohibited from building a new passenger terminal at the former Nayong Pilipino Complex.

Pagcor issued this statement in response to PAL’s proposal to build a P20 billion extension terminal for the Ninoy Aquino International Airport 2, designed to accomodate 12 to 15 million passengers per year.

The state-run gaming firm explained that PAL’s lease contract with the former management of Pagcor only includes the use of the rented property as “an aircraft parking ramp/apron facility. “

“Hence, it is prohibited form using the leased premises for any other business or purpose (including the construction of a new terminal) witouth prior written consent from Pagcor,” the gambling regulator said.

A review of the lease contract, which has yet to expire on July 2033, showed that Pagcor is not yet the absolute and registered owner of the property.

“Therefore, since Pagcor has no absolute authority to lease out the property, PAL does not acquire any right to the possession of enjoyment thereof, notwithstanding the contract of lease executed between the two parties,” it pointed out.

Pagcor also revealed that PAL was only paying a monthly rental fee of P40 per square meter for the total 10 hectares of the 15-hectare property, “grossly disadvantageous to the government.”

“The ultimate aim of Pagcor’s current management is to ensure that all dealings entered into by the agency will be advantageous to the government,” Pagcor said.

“Pagcor has already requested an opinion recommendation from the Office of the Solicitor General regarding this matter,” it added

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