Arroyo uses Manila's controversial airport terminal
MANILA, June 30 (Reuters) - Philippine President Gloria Macapagal Arroyo used a mothballed terminal at Manila's crowded international airport on her return from a U.S. state visit on Monday, and ordered it be made ready for commercial use in weeks.
Terminal 3 at Manila airport was scheduled to be in service in late 2002 but has been kept unused after a bitter dispute between the government and the builders consortium, headed by German airport operator Fraport (FRAG.DE).
Foreign investors say the sight of the large, deserted terminal, on a road leading from the airport to upscale residential areas south of Manila, is a stark reminder of the graft and legal uncertainties that can beset firms doing business in the Philippines.
Arroyo and other passengers on board a Philippine Airlines flight from San Francisco landed early on Monday morning and disembarked at Terminal 3. Radio reports said the president inspected customs, immigration and baggage facilities and told officials to make some improvements.
She told Michael Defensor, the head of a task force on the terminal, to get it ready for use by domestic airlines within three weeks, the reports said.
International flights will start from the terminal within six months, officials said.
The Philippine government seized the terminal, which has a capacity of 13 million passengers a year, in 2004 after a contract dispute with the Fraport-led consortium. Fraport and the joint venture company for the project are pursuing compensation claims for over $400 million.
A plan to open the terminal in 2006 was postponed after a section of its ceiling collapsed. Repairs and structural improvements have taken up over two years.
The other terminals at Manila's decaying airport, which is near the sea in the heart of the city, have a combined capacity of about 17-18 million passengers a year.
The government is also promoting the international airport at Clark, 80 km (50 miles) north of Manila, but it is mainly used by budget airlines and cargo flights.
Fraport received an initial payment of 27 million euros from the Philippine government in 2006 for Terminal 3 and then a further 41.9 million euros from the German government under a state guarantee for investments outside the country.
It has said it will continue to pursue claims against the Philippine government. (Reporting by Raju Gopalakrishnan; Editing by Valerie Lee)
