Phoenix Power agrees $11.8 million settlement

Phoenix Power Company SAOG, which owns and operates the giant 2,000 MW Independent Power Project (IPP) in Sur, has announced that it has agreed to pay $11.8 million to South Korean engineering contractor Daewoo Engineering & Construction Co Ltd in settlement of a claim raised by the latter. Daewoo, the engineering-procurement-construction (EPC) contractor for the project, had launched legal action against Phoenix Power over a disputed payment. “The settlement agreement obliges the Company to pay a settlement sum of $11.8 million to the EPC contractor,” said Phoenix Power in a filing to the Capital Market Authority (CMA). “The company clarifies that in settling the claim, the company’s ability to pay dividends to shareholders will be impacted from January 2018. The settlement is not likely to have an adverse impact on the Company’s profit and loss statement for 2017 and onwards,” it added.