Can Group Five bounce back from Ghana setback?
The construction giant wants a third party to determine its liability for Kpone project delay damages
The $410m Kpone power plant project in Ghana promised so much but has brought nothing but pain for the beleaguered construction company Group Five. In separate statements, Group Five and its Ghanaian client Cenpower Generation on Friday announced that the much-delayed project has been terminated. But far from settling the squabble, Friday’s announcements could mark the beginning of a wrangle over the costs of the delay in the project. The project is late by more than a year. It was scheduled to be completed in September 13 2017. Group Five says gross maximum delay damages exposure is capped at $62.5m, which Cenpower has claimed already. “The group continues to challenge the liability for delay damages, which is to be independently determined through the dispute resolution mechanism set out in the contract,” the company said.
Group Five in November failed to interdict Cenpower from demanding $62.7m for delay damages from HSBC and Standard Chartered, Group Five’s bank guarantee ...