Sinohydro backs out of P92m suit against gov�t
Wednesday, August 02, 2017
The dispute arose after the government terminated Sinohydro’s contract in July 2012 for ‘failing to complete the expansion of the airport within stipulated time frame and cost estimates’.
As a result of the delays, government retrieved P75 million in performance and retentions bonds from Sinohydro, leading to the Chinese company filing a case with the London-based International Chamber of Commerce (ICC).
While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...