Fraport's Compensation Claims Basically Confirmed / Supreme Court Decision in Manila Stipulates Compensation from the Philippine Government - World Bank Arbi

Frankfurt am Main 22. 1. 2004 (PROTEXT/ots) - Fraport AG hasnow received via its lawyers yesterday's Philippine SupremeCourt decision, which confirms its early decision of May 2003that concession contracts between the Philippine government andthe PIATCO consortium for constructing and operating the newpassenger terminal in Manila were invalid. This latest decisioncomes as no surprise to Fraport AG - which has a 30 percentshare in PIATCO - and is by no means a "final end" to thecompany's claim for compensation. Rather, in view of theprevious Supreme Court decision Fraport already applied lastsummer for an arbitration procedure at the World Bank to receivecompensation from the Philippine government for the nearlycompleted International Passenger Terminal 3 project (NAIA IPT3).

In this latest decision, the Philippine Supreme Courtconfirms for the first time that the government can only takeover the terminal following payment of compensation. Page 40 ofthe Supreme Court's written decision states word-for- word:"This court, however, is not unmindful of the reality that thestructures comprising the NAIA IPT 3 facility are almostcomplete and that funds have been spent by PIATCO in theirconstruction. For the government to take over the saidfacility, it has to compensate respondent PIATCO as builder ofthe said structures. The compensation must be just and inaccordance with law and equity for the government can notunjustly enrich itself at the expense of PIATCO and itsinvestors."

The Supreme Court decision unmistakeably calls on thePhilippine government to negotiate a compensation agreement withPIATCO or its shareholding partners. Fraport is striving to getrespective talks with the government resumed - withoutjeopardizing, in any form whatsoever, the arbitration procedurenow in process at the World Bank in Washington.

ots Originaltext: Fraport AG Im Internet recherchierbar:http://www.presseportal.de

For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Robert A. Payne - ManagerInternational Press 60547 Frankfurt am Main, Germany Tel.: +4969.690.78547; Fax: +49.69.690.60548; E-mail:r.payne@fraport.de; Internet: www.fraport.de (click on "PressLounge")

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