Airport contractor sues govt in P43m dispute

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A P43 million performance penalty slapped on Chinese firm Sinohydro after government terminated the company’s airport expansion contract has sparked another legal battle between the two parties with the construction company accusing the state of ignoring a verdict handed down by a dispute adjudication panel.

Government retrieved the penalty  from the  project’s initial P433 million   contract  sum in November 2012 as a contract default penalty. This followed the termination of  Sinohydro’s Sir Seretse Khama International Airport (SSKIA) contract in July 2012 for “ failure to complete the expansion of the airport within stipulated time frames and cost estimates”.

In a matter heard by Justice  Michael Leburu last week, Sinohdryo is seeking the High Court to order government to  pay back  the P43 million, and  deposit the monies  into a mutually held account as directed by the Dispute Adjudication Board(DAB).

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