JOHANNESBURG – Construction engineering company Group Five said on Wednesday its legal team was still pursuing its contractual rights and entitlements for payment, including the recovery of damages and other claims, against Cenpower Generation Company over what it called the unlawful termination of the Kpone project in Ghana.
In November, Cenpower terminated Group Five's contract to construct the.$410 million (R5,575bn) Kpone independent oil and gas-fired power plant after more than a year's delay. Cenpower imposed a $60.5 million fine for the costs to be incurred to complete the works and the recoupment of estimated losses and damages.
The following month Cenpower instituted claims and demands on the performance bonds put in place as security by Group Five for delay damages due to the inability of the latter to complete the project by the scheduled completion date of September 13 last year.
On Wednesday Group Five said the demands to its bank guarantee providers for the payment of the full value of bank guarantees in the issue of $106.5 million were adhered to and paid out to Cenpower.
It said payment was made on the basis of the legal requirements of on-demand bonds – which state that bonds must be separated from the contract and their related contractual claims and disputes – and not on the merits of the contractual claims presented by Cenpower.