FRANKFURT, Germany, April 1, 2011 /PRNewswire/ -- Fraport AG has filed for a new request for the institution of arbitration proceedings against the Republic of the Philippines at the World Bank's International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C. On December 23, 2010, an ICSID ad hoc committee unanimously decided to annul the ICSID award of August 16, 2007. In the annulled award the tribunal had decided, based on a two-to-one vote, that it did not have jurisdiction to hear Fraport's case. Thus, Fraport had now the right to resubmit its case to a new ICSID tribunal. Fraport's access to the ICSID arbitration system is based on the bilateral investment treaty between the Federal Republic of Germany and the Republic of the Philippines. This treaty provides foreign investors with the option of legal recourse to an ICSID tribunal for divergences resulting from an expropriation or from unfair or illegal treatment. In the new arbitration proceedings, Fraport shall again claim compensation of about US$425 million plus interest for its terminal project at Ninoy Aquino International Airport (NAIA) in the Philippine's capital Manila. Fraport's project was expropriated by the Philippine state, just as the terminal was nearing completion. The Manila airport authority has been using the passenger terminal for domestic and international flights since mid-2008. Except for partial payment of some US$59 million made to the project company, the Philippine government still has not paid any compensation to Fraport.
For Further Information, Please Contact: Fraport AG Frankfurt Airport Services Worldwide Robert A. Payne, B.A.A. - Senior Mgr. International Press & PR International Spokesman, Press Office (Dept. UKM-PS), Corporate Communications, 60547 Frankfurt am Main, Germany Tel.: +49-69-690-78547; E-mail: [email protected]; mailto:[email protected]; Internet: http://www.fraport.com
SOURCE Fraport AG