Weir withdraws arbitration request with ICC

by Lenie Lectura – February 18, 2016

from Business Mirror

WEIR Engineering Services Ltd., a contractor of Lopez-led Energy Development Corp.’s (EDC) Bacon-Manito (BacMan) geothermal power plant, withdrew its request for arbitration with the International Chamber of Commerce (ICC) filed in April 2015.

“We now advise that Weir has withdrawn its request for arbitration with the CIAC [Construction Industry Arbitration Commission]. The CIAC has dismissed the proceedings before it on that basis,” EDC told the exchange on Thursday.

Just recently, EDC subsidiary Bac-Man Geothermal Inc. (BGI) received a partial award from the ICC involving the arbitration proceedings with Weir, which was ordered to pay BGI $4.4 million within seven days of the date of the partial award dated February 1, 2016, and $887,902.03 within 21 days as the reimbursement for legal costs.

The ICC tribunal declared that it has exclusive jurisdiction to hear and finally determine the parties’ disputes, and 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.

BGI had received a request for arbitration filed by Weir with the CIAC last April 14. BGI, for its part, initiated arbitration with the ICC in order to enforce its rights under its contract for works—completion of works to steam turbine and generator of Units 1, 2 and 3 dated March 29, 2012, with Weir, following a favorable determination by the engineer appointed pursuant to the contract that sums are owed by Weir to BGI.

The BacMan geothermal power plants in Bacon, Sorsogon province, and Manito, Albay province, run at 130 megawatts (MW), consisting of Unit 1 (55 MW), Unit 2 (60 MW) and Unit 3 (20 MW).

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