Fraport Receives First Payment for Manila Terminal Project
Frankfurt (FRAPORT) - The Philippine government has made a first partial compensation payment of 3,002,125,000 Philippine pesos (about US$60 million) to PIATCO terminal company, in which Fraport AG holds a 30-percent share. Of this amount, some US$29 million were transferred to Fraport AG's account in Frankfurt today. Part of this amount is the redemption of a loan which Fraport granted to PIATCO. The remainder of this initial payment was used for the reduction of other PIATCO liabilities. The definitive total amount of compensation shall soon be determined with the help of independent experts.
"This is a first success in our efforts to get appropriate compensation for our investment in the Philippines," said Fraport AG's executive board chairman Dr. Wilhelm Bender. "The sum remitted can therefore only be a down payment for PIATCO. We are still vigorously pursuing the arbitration procedure before the World Bank in Washington." The full amount of the payment made will have an effect on earnings in the current business year so that Fraport will show additional non-recuring income of about €22.6 million.