The Lopez-led Energy Development Corp. (EDC) said on Tuesday that it has settled its dispute with foreign contractor Weir Engineering Services, Ltd. over the rehabilitation of its subsidiary Bacon-Manito geothermal plant in Bicol.
In a disclosure to the Philippine Stock Exchange, the EDC said BacMan Geothermal Inc. and Weir have agreed to end the arbitration and said claims entailed in the contract “have now been settled on terms satisfactory.”
“EDC is pleased to announce that BGI has informed it that all claims arising under the Contract have now been settled on terms satisfactory to BGI and Weir,” the disclosure read.
In 2012, BGI hired Weir to oversee the rehabilitation of steam turbines and generator installations at its two units in Albay and one in Sorsogon. All units at BacMan plants produce approximately 140 megawatts (MW).
In 2015, BGI called for an arbitration with the International Court of Arbitration of the International Chamber of Commerce (ICC) to enforce its contract after it was said that “sums are owed by Weir to BGI.”
The foreign contractor filed for legal relief with the Construction Industry Arbitration Commission (CIAC) but the ICC ruled that it has the sole jurisdiction over the disputes.
Early this year, the ICC ruled that Weir pay BGI a total of $5.29 million as the “sums owed by Weir to BGI under the contract,” as well as $887, 902.03 in reimbursement of legal costs.
The settlement also indicated that BGI agreed to return $1.89 million to Weir.
The tribunal ruled that “Weir is permanently restrained from pursuing proceedings in any other dispute resolution forum, including the CIAC, in connection with disputes arising under the Contract that have validly been referred by BGI to arbitration under the ICC rules.”