News Releases/Ad hoc

FRA/rap>  Regarding the decision from the World Bank's International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C., about Fraport AG's claim for compensation against the Republic of the Philippines, a  Fraport AG spokesperson stated:

• This decision over Fraport's arbitration case concerning  compensation (until now only partial) for the expropriation of its investment in the Manila terminal project requires in-depth legal examination.  Subsequently, Fraport will then be able to decide on its further course of action.

• ICSID declared that it does not have jurisdiction.  The decision of the arbitration tribunal does not mean that Fraport no longer has any claim for compensation.  In fact, other legal proceedings are still pending in Manila and Singapore, where the project company – in which Fraport holds a 30-percent share – among other reliefs, also seeks just compensation.  

• Thus, this is further underscored by the fact that the cost of the arbitration proceeding will not solely be the burden of the losing party but rather will be shared by both parties.

• In September 2006, the Philippine government made a first down payment on the total amount of compensation, which is still to be finally determined.

Futhermore, the Fraport spokesperson pointed out that –  independent of the decison of the World Bank's arbitration court and of the company's other proceedings – Fraport AG  already made a complete write-down in  2001 and 2002  on its investment in the Manila terminal project.

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For More Information, Please Contact:
Fraport AG Frankfurt Airport Services Worldwide
Robert A. Payne, B.A.A. – Manager International Press
Press Office (Dept. UKM-PS), Corporate Communications (UKM)
60547 Frankfurt am Main, Federal Republic of Germany
Tel.: +49 69.690.78547; Fax: +49.69.690.60548;
E-mail:  r.payne@fraport.de