National Grid Corporation of the Philippines won an arbitration case against state-run Power Sector Assets & Liabilities Management Corp. and National Transmission Corp. (TransCo) at the Singapore International Arbitration Centre, its parent firm said Monday.
The tribunal ruled in NGCP’s favor on several key points, including the validity of a P57.88 billion ($1.16 billion) prepayment made in 2013, Synergy Grid & Development Phils. Inc. (SGP) said in a stock exchange disclosure.
“Under the UNCITRAL Rules, the Tribunal’s award is final and binding on the parties and the parties undertake to carry out the award without delay,” SGP said.
The tribunal rejected claims by PSALM and TransCo that NGCP breached nationality restrictions in the Philippine Constitution and the Anti-Dummy Law, and that it had violated its concession agreement regarding permitted debt and insurance.
It affirmed NGCP’s exclusive right to prepare the annual Transmission Development Plan and to deal directly with regulators. It also confirmed NGCP’s exclusive right to use transmission assets for related businesses, including telecommunications.
The tribunal ordered TransCo to pay NGCP some P372.77 million, lower than TransCo’s initial claim of about P3.9 billion, plus 6-percent annual interest.
It also ruled that a P10.1065 billion difference regarding projects under construction should be converted into US dollars at a rate of P49.6 per dollar, as argued by NGCP, rather than the P52.67 per dollar proposed by PSALM and TransCo, impacting concession fee adjustments.
PSALM and TransCo were ordered to indemnify NGCP for P56.53 million in right-of-way expenses, plus 6-percent annual interest.