We establish a relation between intersection numbers of special cycles on a Shimura curve and special values of derivatives of metaplectic Eisenstein series at a place of bad reduction where p-adic uniformization in the sense of Cherednik and Drinfeld holds. The result extends the one established by one of us (S. Kudla: Ann. of Math. 146 (1997)) for the archimedean place and for the non-archimedean places of good reduction. The bulk of the paper is concerned with the corresponding problem on the Drinfeld upper half plane (the formal scheme version).