MANILA -- The Philippines plans a soft opening on March 31 of the Ninoy Aquino International Airport Terminal 3 which has been kept closed due to a dispute between the government and Germany's Fraport AG, an official said yesterday.

The $650-million terminal was supposed to open in 2002 but the government and Fraport fell out and the German airport operator then sought compensation after President Gloria Arroyo revoked its contract in 2003.

Liza Mascardo, planning and projects manager of Manila airport, said the terminal would have a "soft opening" on March 31 with a single Cebu Pacific flight to Hong Kong.

Arroyo revoked the Fraport consortium's "build-operate-transfer" contract with the government in 2003 on the grounds that certain terms were illegally arranged by her deposed predecessor, Joseph Estrada, in 1998.

Fraport, which has been seeking compensation of $465 million for the terminal project, took its case to arbitration before the International Centre for Settlement of Investment Disputes in Washington.

The Supreme Court in December ordered the Philippines to pay up to P3 billion to the Fraport-led consortium.

Terminal Three was designed to handle 13 million passengers a year and was originally scheduled to open in late 2002.*AFP

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