Mediation started last month and both parties hope that the issues will be settled.
Siemens is the equipment supplier for the 1500MW gas-fired power plant in Batangas City. Technical problems in 1999 delayed the completion of the power units. Under the terms of the agreement between the parties any delay invokes a penalty charge.
Siemens has interests in the Philippines besides Batangas. It is expected to bid for a $550 million Leyte-Mindanao interconnection project as well as being mooted in connection with various substation and grid upgrading schemes. Bidding for the interconnection scheme is scheduled for the first quarter of 2001.
