PRETORIA – Cenpower Generation Company claims the $62.7 million (R857.7m) in delay damages it received from listed Group Five’s bank guarantee providers for its $410m Kpone power plant contract in Ghana "do not come close” to the losses it has suffered.
Cenpower last week terminated its engineering, procurement and construction (EPC) contract with Group Five for the Kpone power plant.
Theophilus Sackey, the chief executive of Cenpower, said the company and its shareholders remained committed to ensuring the project was completed and commercially operational as soon as possible.
Sackey said construction of the plant was complete, but testing and commissioning had to be performed.
Sackey said the project had suffered more than a year’s delay, and Cenpower recently called on the bonds put in place as security by Group Five for delay damages due to the inability of Group Five to complete the project by the scheduled completion date of September 13 last year.