CONSTRUCTION
Group Five forced to dip into reserves
The construction's company's $410m contract to build a power plant in Kpone, Ghana, has been hit by more delays
Further delays to the company’s power plant project in Ghana have prompted Group Five to dip into cash reserves held in Europe and to forecast a wider loss for the six months ending December 2017. The expected completion date of Group Five’s $410m contract to build a 350-megawatt power plant in Kpone, Ghana, was pushed out once more as new delays arose, the group said on Tuesday. Commissioning would likely happen at the end of February 2018, instead of December 2017, while performance testing and reliability runs would potentially take place in March. To fund the Kpone contract to completion, the group needed to redeploy about €20m (R301.28m) from its investments and concessions business in Europe to the project. Group Five said it faced penalties of up to $62.5m for the delays, but was contesting this on the grounds that delays were caused by changes to Ghanaian law. It was also pursuing contractual claims against subcontractors. Partly because of the additional costs to complete t...
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