German airport operator Fraport is considering challenging a recent World Bank arbitration tribunal’s dismissal of its claim for hundreds of millions of dollars in compensation against the Philippine Government over the failed Manila airport terminal project.

Fraport says in a statement it is considering applying for an annulment of the August 17 decision, in which the World Bank arbitration tribunal determined it did not have jurisdiction over the case. Fraport adds that only two of the three tribunal judges made that determination.

“After carefully evaluating the more than 200-page long decision, Fraport currently believes that essential documents presented at the proceedings, as well as arguments and other aspects submitted by Fraport, were not or insufficiently taken into consideration by the court,” it says. “Therefore, Fraport’s executive board is examining all legal options, including application for annulment.”

If successful, a possible plea for annulment could lead to the arbitration procedure being restarted. Fraport is claiming compensation of well over $400 million from the Philippine Government for “expropriation of the Manila terminal”.

Fraport sought compensation against the Philippine Government after writing down its entire investment in the project to build and manage a third terminal at Manila’s congested Ninoy Aquino International Airport. It was an equity partner in the consortium that also involved local companies but backed away from the project after the Government attempted to amend the terminal management contract, which had been awarded by the preceding administration. Fraport is also pursuing legal action in Manila and Singapore. Most of the construction on the terminal was completed but it never went into commercial use.

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Source: Flight Daily News