Del Rosario and Westerwelle agreed that the row between German firm Fraport over the Ninoy Aquino International Airport (NAIA) Terminal 3 should not affect other aspects of the long and robust relations between the Philippines and Germany.

 

Del Rosario told the German minister that despite the Fraport issue, investment and trade between the two countries have increased. He highlighted the robust growth and expansion of German companies in Philippine economic zones.

 

Germany is the Philippines' 12th largest source of foreign direct investments, with latest data available showing that direct investments from German companies in 2009 amounted to $535.8 million.

 

It also remains one of the largest investors in the country. In 2010, Germany was the Philippines' sixth largest export market, and the largest export market in Europe.  Exports to Germany totaled US$2.66 billion or a 5.17% share of the total.

 

 

Del Rosario said the Philippines has made serious efforts in arriving at a fair and just resolution to the Fraport case, using credible dispute settlement modes. 

 

Fraport is the foreign partner in the Philippine International Airport Terminal Co. (Piatco), the consortium that won the right to build and operate NAIA-3. 

 

The Philippine government nullified the NAIA-3 contract of the consortium in 2002 over allegations that the private firms violated anti-dummy and other local laws. Fraport filed the compensation case at the World Bank's International Centre for Settlement of Investment Disputes, citing violation of the bilateral investment treaty between the Philippine and German governments.

 

Piatco, on the other hand, filed a damage claim before the Singapore-based International Chamber of Commerce (ICC) in Singapore. The ICC's 2010 decision favored the Philippine government, but Piatco has appealed it. Related story: Fraport revives $425-M NAIA-3 compensation claim vs PH gov't

 

Last month, the Singapore High Court dismissed Piatco's petition for compensation, upholding the ICC ruling.

 

Del Rosario also thanked Germany for its generous development support for poverty reduction and conflict transformation in Mindanao, which had been the focus of German development aid since 2009.

 

The Philippine and German foreign ministers also signed the Joint Declaration of Intent on cultural relations between the Philippines and Germany, aimed at closer cooperation in areas such as literary works, performing arts, film and television, museology, heritage and art conservation, among others.

 

The event also marks this year’s vibrant Philippine-German cooperation in cultural activities, which includes several projects related to the celebration of 150th birth anniversary of Philippine national hero Dr. Jose Rizal.