In a disclosure to the Philippine Stock Exchange, PNOC-EDC quoted the entire amount to be paid by NPC at P2,894,930,272.15. The parties agreed that the settlement amount shall bear no interest charges.

PNOC-EDC and NPC signed on April 24 a joint manifestation and undertaking "to accept in full and to abide by the arbitral decision rendered, the principles and justifications stated and the amounts directed to be paid."

The parties also mutually agreed to bring these legal disputes to voluntary arbitration to be presided by Justice Alberto C. Agra of the Office of the Government Corporate Counsel.

The state-run power firm has been asked to pay PNOC-EDC’s claims in four tranches, based on agreed timeframes by the parties.

The first tranche of payment will amount to P500 million to be paid within 30 days from the submission of the Joint Manifestation and Undertaking with the Office of the Voluntary Arbitrator; while the second tranche, also amounting to P500 million, shall be settled within 60 days from the submission of the same document.

The third tranche amounting to P1.0 billion shall be paid in January 2009; and the final tranche will account for the balance of P894,930,272.15 to be paid by January 2010.

"Full payment of the amounts indicated above shall result in a full and complete settlement of all the claims each party has against the other, in connection with all the issues covered by the November 5, 2007 arbitration agreement," PNOC-EDC has stated in its disclosure to the local bourse.

Among the issues resolved in the arbitration agreement are PNOCEDC’s claims on: deduction of royalties on generation shortfall in BaconManito I and II plants; and the Leyte-Luzon and Palinpinon plants amounting to P423.22 million.

PNOC-EDC also sought settlement of some P73.66 million underpayments in royalty reimbursement billings in the Palinpinon plant.

NPC, for its part, has claims receivables from PNOC-EDC for overpayment of royalty fees from 1996 to 1998 amounting to P1.69 billion.

The other PNOC-EDC claims are on: the P538 million steam billing adjustments for the BaconManito facility; P105.42 million worth of claims on the discontinuance of amortization payments for delayed commissioning of BacMan 1 and another P28.7 million for the nonpayment of first minimum energy off-take (MEOT) billings for Botong due to delayed power plant completion.

Meanwhile, NPC withdrew its claims for BacMan generation as a result of PNOC-EDC’s acceptance of the power firm’s position on the matter.

The power firm has just instead pursued force majeure claims for the period actually utilized to repair the damage caused by the typhoon in 2006.

The other claims put forward by PNOC-EDC are on generation, waste disposal, force majeure and other billing adjustments for the Tongonan plant and also with the Mindanao geothermal plant.