Manila T3 partners win court battle

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The Philippine government must pay Philipine International Air Terminal Company, including Fraport, compensation before it takes over the terminal, the supreme court has ruled

The Philippine supreme court has ruled that the government must pay compensation to Fraport-led consortium PIATCO in order to take control of Manila Ninoy Aquino International airport's new terminal. The court confirmed its decision of May 2003 that the agreement signed by the two parties on the construction and operation of T3 was invalid, but added that at least some of PIATCO's investment must be reimbursed.

PIATCO pulled out of the terminal in May last year amid a row over the control of retail revenues, having incurred a group loss of $1.32m in 2002 as a result of the building remaining vacant since November 2002.

In a statement, Fraport welcomed the decision and said that it was striving to get talks with the government resumed, although it added that it would proceed with the World Bank arbitration set in motion after the court's May decision.

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