Manila Terminal Project: Fraport Executive Board Considers Application to Annul World Bank Decision
31/08/2007 15:40
PR Newswire
FRANKFURT, Germany, August 31 /PRNewswire/ -- Following extensive discussion of the World Bank arbitration tribunal's
decision received on August 17, the Fraport AG (DAX:FRA) executive board is
examining possible further legal steps and is considering to apply for
annulment of this decision.
Only two of the three tribunal judges hold the view that
Fraport's involvement in the Manila project is not protected under the
German-Philippines Investment Guarantee Treaty and, thus, that the tribunal
court does not have jurisdiction for this case - citing that the so-called
anti-dummy law was vilotated in 1999. Under this Philippine law, foreigners
are prohibited from exercising any management influence in so-called public
utility companies.
In a comprehensive 24-page dissenting opinion on the
decision, one of the three judges stated as one reason for his opposing view
that the anti-dummy law (which applies to public utilities) could not
possibly apply to the case at issue - because the Philippine Supreme Court
had declared the concession agreements for constructing and operating the new
terminal at Manila Airport "null and void" from the start. The arbitration
court was bound to this decision. In the absence of a concession, there was
no public utility; hence violation of the corresponding law was impossible.
The court explicitly stated that there was "no successful
party" and therefore each party must pay its own costs of the proceedings.
Fraport adheres to its position that it did not violate
Philippine law. All concluded agreements were drawn up together with
Philippine and international law firms.
After carefully evaluating the more than 200-page long
decision, Fraport currently believes that essential documents presented at
the proceedings, as well as argumentations and other aspects submitted by
Fraport, were not or insufficiently taken into consideration by the court.
Therefore, Fraport's executive board is examining all legal options,
including application for annulment. If sucessful, a possible plea for
annulment could lead to the arbitration procedure being restarted - whereby
Fraport is claiming compensation of well over $400 million from the
Philippine government for expropriation of the Manila terminal.
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; Internet: http://www.fraport.com/
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