Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue
Ortigas Center, Pasig 1605, Philippines
Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

February 17, 2016

JANET A. ENCARNACION
HEAD, Disclosures Department
The Philippine Stock Exchange, Inc.
Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
Dear Ms. Encarnacion:
We refer to the previous disclosures dated 14 and 20 April 2015 and 2 February 2016 of
Energy Development Corporation (EDC) in relation to the arbitration proceedings
between EDCs wholly owned subsidiary Bac-Man Geothermal Inc. (BGI) and its
contractor Weir Engineering Services Limited (Weir).
EDCs April 14, 2015 disclosure explained that BGI had received a request for
arbitration filed by its contractor, Weir, with the Construction Industry Arbitration
Commission (CIAC).
EDCs April 20, 2015 disclosure explained that BGI initiated arbitration with the
International Court of Arbitration of the International Chamber of Commerce (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 29 March 2012 (the Contract) with
Weir, following a favorable determination by the Engineer appointed pursuant to the
Contract that sums are owed by Weir to BGI.
EDCs February 2, 2016 disclosure explained that BGI has received the ICC tribunals
Phase 1 Award dated 1 February 2016, in which, among other things, 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.
Further to the disclosure requirements of the Exchange, we now advise that Weir has
withdrawn its request for arbitration with the CIAC and the CIAC has dismissed the
proceedings before it on that basis.