Energy Development Corp. said Tuesday wholly-owned subsidiary Bac-Man Geothermal Inc. and contractor Weir Engineering Services Ltd. settled their respective claims on the rehabilitation works of the Bac-Man geothermal facility in Bicol region.
“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,” EDC said in a disclosure to the stock exchange.
Bac-Man Geothermal agreed to return $1.89 million to Weir and both parties “have agreed to jointly take steps to cause the discontinuance of the arbitration.”
Bac-Man geothermal initiated an arbitration with the International Court of Arbitration of the International Chamber of Commerce on April 20, 2015 to enforce its rights under contract for works for units 1, 2 and 3.
Weir was engaged by Bac-Man Geothermal in 2012 to carry out certain rehabilitation works on the steam turbine and generator installations in three existing power-generating units at Bacon-Manito geothermal power plants.
Units 1 and 2 are located at Bac-Man I plant in Palayang Bayan, Manito, Albay and Unit 3 at BacMan II plant in Cawayan, Sorsogon.
All units at the Bac-Man plant are now operational and the facility is producing a gross output of 140 megawatts.
Bac-Man Geothermal received the ICC tribunal’s phase 1 award on Feb, 1, 2016. The ICC tribunal also ordered Weir to pay a total of $5.292 million to the Lopez-owned company.
Weir withdrew its request for arbitration with the Construction Industry Arbitration Commission after Bac-Man received a favorable ruling from ICC in February.
The tribunal also ordered 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.”
ICC also ordered Weir to pay Bac-Man Geothermal $887,902.03 within 21 days from the date of the partial award.