Kenon Holdings Ltd.?s subsidiary OPC Energy Ltd. (OPC) announces an update on the dispute between OPC Hadera Ltd. (OPC-Hadera) (an 80%-owned subsidiary of OPC) and OPC-Hadera?s construction contractor (Contractor) and related arbitration proceedings. OPC announced that a settlement agreement has been signed with the Contractor on December 14, 2023, which provides for a settlement of the parties' claims and termination of related arbitration proceedings, and compensation payable by the Contractor to OPC-Hadera of approximately $21 million. The net compensation payable to OPC-Hadera is approximately $7 million after offset of amounts payable by OPC-Hadera to the Contractor.

Subject to payment of compensation by the Contractor, the Contractor?s guarantees will be released, and the Contractor will be entitled to a final acceptance certificate.