NGCP Seals Victory in P57.88-B Legal Issue Against PSALM and TRANSCO

​The Arbitral Tribunal of the Singapore International Arbitration Centre (SIAC) rendered a Final Award in favor of National Grid Corporation of the Philippines (NGCP) in the case filed by NGCP against the Power Sector Assets & Liabilities Management Corporation (PSALM) and National Transmission Corporation (TRANSCO).

​On February 19, 2025, the Arbitral Tribunal of the Singapore International Arbitration Centre (SIAC) rendered a Final Award in the case filed by NGCP against the Power Sector Assets & Liabilities Management Corporation (PSALM) and National Transmission Corporation (TRANSCO). The Arbitral Tribunal declared:

1. NGCP did not breach the nationality restrictions in the Philippine Constitution, the Anti-Dummy Law, and its obligations under the Concession Agreement in relation to permitted indebtedness or insurance;
2. NGCP validly exercised its right to make the prepayment in the amount of P57.88 billion that it effectuated on July 15, 2013;
3. NGCP shall pay only pay approximately P372.77 million to TRANSCO out of its claim of around P3.9 billion;
4. The agreed difference for the Projects Under Construction in the amount of P10.106 billion shall be converted into US Dollars at the rate of 1 USD : 49.62 P, which is the rate claimed by NGCP to be the appropriate rate, thereby decreasing the Concession Fee to be paid by NGCP;
5. NGCP is entitled to an indemnification from PSALM and TRANSCO up to the amount of P56.5 million for expenses on right of way claims with interest;
6. NGCP shall be compensated by TRANSCO through a corresponding reduction in the Concession Fee for Sub-Transmission Assets (STAs) that were on the Bid Date the subject of an ongoing negotiation, and as such, remain within the Transferred Assets;
7. NGCP’s claim for capital expenditures on STAs was denied as TRANSCO is not obliged to account to NGCP in respect of any portion of the proceeds that may be attributable to NGCP’s capital expenditure;
8. NGCP has, during the Concession Period, the exclusive right and responsibility of preparing the Transmission Development Plan (TDP) on an annual basis and is entitled to deal directly, and without intervention (or prior approval) by TRANSCO, with the regulators;
9. NGCP shall be reimbursed by TRANSCO for its Retained Obligations of P51.8 million;
10. NGCP has the exclusive right during the Concession Period to use the Transmission Assets which includes the right to use such assets for a Related Business, including for a telecommunications system;
11. Finally, the Tribunal declared that title to any Documented Property Rights acquired by NGCP in the exercise of its power of eminent domain is to be registered in the name of TRANSCO.

Under the UNCITRAL Rules, the Tribunal’s award is final and binding on the parties and the parties are obligated to carry out the award without delay.