April 22, 2015

Energy Development Corp subsidiary files countersuit against contractor

Energy Development Corp (EDC) disclosed to the Exchange that its wholly-owned subsidiary Bacman Geothermal Inc (BGI) today filed a request for arbitration of its dispute against Weir Engineering Services Limited (Weir) with the International Court of Arbitration of the International Chamber of Commerce (ICC).

The filing of the request follows a similar filing made by Weir last week to the Construction Industry Arbitration Commission for arbitration in relation to its dispute with BGI (15 Apr, Daily Wealth Take). WEIR is one of several contractors engaged by BGI in 2012 for the completion of repair works to the steam turbine and generator of BacMan Units 1 to 3.

BGI’s request with the ICC seeks the payment in BGI’s favor of the amount of at least US$8.82m (exclusive of interest). BGI initiated the arbitration in order to enforce its rights under the contract, following a favorable determination by Parsons Brinckerhoff Philippines Inc, the appointed Engineer pursuant to the Contract that sums are owed by Weir to BGI. - WealthSec