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Dispute on BacMan refurbishment settled between EDC and Siemens

Dispute on BacMan refurbishment settled between EDC and Siemens JW Marriott, Jakarta, Indonesia (source: flickr/ Aktiv Phil, creative commons)
Francisco Rojas 21 Nov 2014

BacMan Geothermal Inc has terminated arbitration process started in 2013 in relation to its dispute with TurboCare Inc and Siemens Inc regarding the rehabilitation of BacMan Units 1 to 3.

In a release to the Stock Market, EDC announces that nn 28 November 2013 BacMan Geothermal Inc. (“BGI”), a subsidiary of Energy Development Corporation (“EDC”) has commenced an arbitration administered by the International Court of Arbitration of the International Chamber of Commerce (“Arbitration”), in relation to its dispute with TurboCare, Inc. (now known as EthosEnergy TC Inc.), and Siemens Inc. (together, the “Contractor”). The Contractor had been engaged by BGI in 2010 to carry out the rehabilitation of BacMan Units 1 to 3. Disputes arose in relation to the carrying out of those works, which were the subject of the Arbitration.

BGI and EDC are pleased to announce that, as of today’s date, all claims under the Arbitration (Which represent less than 10% of EDC’s current assets and are not considered to be material.) have now been settled with the Contractor on terms satisfactory to BGI and EDC, and that the Arbitration will be discontinued as a result. EDC looks forward to pursuing new opportunities with the Siemens group, and strengthening the commercial relationship between the two companies.

As of today’s date all Units at BacMan are operational and the facility is producing a gross output of approximately 130MW. The permanent fixes have now been completed on both BacMan Unit 2 & Unit 3, whilst BacMan Unit 1 will continue to operate with its interim solution until 27 December 2014 when it will then be shut down to install the new steam turbine rotor from Toshiba. It is planned that BacMan Unit 1 will be returned to service by 20 March 2015.

Source: EDC Press Release to the Philippine Stock Market