ICSID again negates its jurisdiction for arbitrating Fraport’s compensation claim against the Republic of the Philippines
Fraport expressed its disappointment with the latest ICSID award, particularly because an earlier award by a previous ICSID tribunal — which had declined jurisdiction to hear Fraport’s claim – was later annulled by an ICSID ad-hoc committee at the end of 2010. The ad-hoc committee’s decision prompted Fraport to resubmit its compensation case to ICSID.
Fraport will now carefully analyze the new award in order to determine the company’s strategy for further legal recourse. Irrespective of the new award, Fraport AG will continue to pursue its interests in cooperation with the Philippine project company PIATCO, in which Fraport is a shareholder. Already in August 2013, the Philippine Court of Appeals ruled that the project company was entitled to receive compensation in the amount of about US$371 million as of July 31, 2013. This amount took into account an advance payment of about US$59 million already made in 2006 by the Philippine government to PIATCO, and it further includes interest. The compensation, however, still has not been released by the Philippine government. All parties have contested the total amount of compensation. Legal proceedings at the local level, which were initiated in 2004, are currently pending with the Philippine Supreme Court.
In 1997, the project company PIATCO, in which Fraport is a shareholder, entered into a contract with the Philippine government to build and operate a new terminal at Manila’s international airport. In 2002, after completion of the terminal, the newly elected Philippine government declared the contract null and void – expropriated the terminal and thus voided Fraport AG’s investments.
MEDIA CONTACT: Fraport AG Frankfurt Airport Services Worldwide, Robert A. Payne, B.A.A. – International Spokesman and Head of International Press/PR & External Activities Team, Press Office (UKM-PS), Corporate Communications, 60547 Frankfurt, Germany; Tel.: +49 69.690.78547; E-mail: email@example.com ; Internet: www.fraport.com