ICSID Again Negates Its Jurisdiction for Arbitrating Fraport's Compensation Claim Against the Republic of the Philippines

Frankfurt (ots) -

Fraport Will Carefully Analyze the Decision - PIATCO and Fraport
Continue to Pursue Their Shared Interests in the Philippines

In its decision announced yesterday, a tribunal of the
International Centre for Settlement of Investment Disputes (ICSID)
declared once again that it has no jurisdiction over Fraport AG'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.

Print-quality photos of Fraport AG and Frankfurt Airport are
available for free downloading via the photo library located in our
Press Center on the Fraport Web site. For TV news and information
broadcasting purposes only, we also offer free footage material for
downloading.

Fraport AG - which ranks among the world's leading companies in
the global airport business - offers a full range of integrated
airport management services and boasts subsidiaries and investments