The New York Times has a piece on how German company Fraport came to the Philippines with high hopes and left with a U$318 million charge that wiped out its profits for 2002. The greatest tragedy is how the country is left with a half-finished airport.

As cautionary tales go, Fraport's misadventure in Manila has all the elements: a confident, well-financed Western investor; a little-known local partner with political connections; and a revolving-door regime, with officials who thought little of meddling with, or even annulling, a contract.

Fraport is still trying to recoup its investment. It has filed an arbitration claim against the Philippine government with the World Bank. The Supreme Court in Manila is reviewing the government's decision to cancel the 1999 contract with Fraport to build and operate the terminal.