The consortium of Philippine International Air Terminals Company (PIATCO) has received a compensation payment from the Philippine Government, after settling a dispute over a terminal project developed at Manila International Airport.
Germany’s Fraport Frankfurt Airport Services Worldwide (Fraport), which led the PIATCO consortium, said that the compensation was made in line with the Philippine Supreme Court’s (SC) decision of 8 September 2015.
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Reaffirming the decision in April, the SC has instructed the Philippine government to pay the compensation of around $510m to PIATCO, reported Philstar.
In 2004, the government expropriated Manila Airport's new terminal, built by Piatco, and subsequently made the concession contract with PIATCO invalid.
Fraport said in a statement: “Following the decision of the Philippine Supreme Court, PIATCO has received compensation payments for the expropriated terminal project in Manila.
“Based on this compensation, PIATCO has already made a partial payment to Fraport.
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By GlobalData“Furthermore, Fraport intends to sell its shareholdings in companies in the Philippines and will no longer purse claims in connection with the expropriation of the terminal project at Manila airport.”
Fraport’s share of compensation from the disputed terminal project is around $270m, around €40m of which will be repaid to the German federal government.
Fraport received the €40m grant from Germany’s Bundesgarantie für Kapitalanlagen im Ausland (GKA) foreign-investment guarantee programme in 2008.
