PRETORIA – The total amount Group Five's bank guarantee providers have paid to the Cenpower Generation Company for the $410 million (R5.88 billion) Kpone power plant in Ghana has swelled to $106.5 million.
This follows the listed construction and engineering group reporting last week that Cenpower had instituted a new claim of $60.5m and a written demand to the group's bank guarantee providers requesting that an amount of $43.8m of the $60.5m claim be paid to Cenpower.
Group Five said yesterday that the demand of $43.8m was paid to Cenpower by the group's guarantee providers on the basis of the legal requirements of on-demand bonds and not on the merits of the contractual claims presented by the client.
This payment is in addition to the $62.7m in delay damages paid to Cenpower by Group Five's bank guarantee providers after the dismissal of the group's urgent interdict application to the high court in Johannesburg to stop Cenpower demanding the delay damages from its bank guarantee providers.
Group Five said yesterday that the claim of $60.5m represented Cenpower’s evaluation of the costs to be incurred to complete the works on the contract and amounts related to the recoupment of estimated losses and damages the client believed it incurred.