Group Five pins hope on hefty counter claim against Ghanaian client
The struggling construction firm says its counter claim against Cenpower will be completed by year-end
Group Five said on Wednesday that its multi-million-dollar counter claims in relation to the aborted Kpone power project in Ghana would be completed by year-end.
If successful, the claims against former client Cenpower Generation, will massively boost Group Five’s fortunes as costs associated with the Kpone project as well as Cenpower’s subsequent claims have sunk the loss-making company. In the 2018 financial year, losses on the Kpone project were R1.3bn. After more than a year’s delay in the completion of the gas- and oil-fired combined cycle power plant project, in November Cenpower terminated the engineering, procurement and construction contract with Group Five. The JSE-listed contractor had earlier paid Cenpower $43.8m in delay damages after its bid to interdict the Ghanaian firm at the South Gauteng High Court failed. Following the termination of the contract, Cenpower slapped Group Five with a $60.5m fine for the costs incurred to complete the works and the recoupment ...