Phl, Germany want better ties

MANILA, Philippines - The Philippines and Germany want relations to move forward despite the continuing controversy over an airport terminal.

Both Foreign Affairs Secretary Albert del Rosario and new German Ambassador Joachim Heidorn hailed the strength of bilateral relations during celebrations the other night marking the Day of German Unity.

In a speech, Del Rosario said that while “contentious issues” are being resolved, the two countries could pursue closer ties in other aspects of bilateral relations.

Heidorn, who presented his credentials to President Aquino earlier in the day, had a similar message.

Del Rosario and Heidorn hailed the two countries’ shared values of democracy and human rights. They also recalled national hero Jose Rizal’s life in Germany.

Bilateral relations have been frayed by Manila’s cancellation of a contract with Germany’s Fraport AG, which entered into a partnership with the Philippine International Air Transport Corp. (PIATCO) to construct Terminal 3 of the Ninoy Aquino International Airport.

When the building was finished, the Philippine government smelled corruption and canceled the contract. Fraport turned to international arbitration, which the government won before the International Chamber of Commerce in Singapore.

But Fraport also took the case to the International Center for Settlement of Investment Disputes in Washington, where the case is effectively back to square one.

Heidorn’s predecessor, Christian-Ludwig Weber-Lortsch, had said the failure to resolve the case and give Fraport reasonable compensation for its lost investment had kept away German investors from the Philippines.

The Aquino administration is studying proposals to settle the case and avoid another phase of protracted and expensive litigation.

Del Rosario told The STAR that other aspects of bilateral relations including trade and cultural exchange could move forward even as avenues for resolving the Fraport issue are explored.

Heidorn, who arrived two weeks ago in Manila, agreed but said it would be good to resolve the Fraport issue soon.

Weber-Lortsch is now Germany’s ambassador to Myanmar.

Germany celebrates Oct. 3 as its National Day, marking its reunification following the fall of the Berlin Wall in 1990.