A case in which a contractor has sued the Geothermal Development Corporation (GDC) seeking Sh3.3 billion as compensation for termination of a contract for movement of geothermal drilling rigs will be heard in April.
Bonfide Clearing and Forwarding Limited sued the GDC after rejecting an arbitral award of Sh38.5 million for work done, loss of business and damages.
GDC managing director Johnson ole Nchoe last week told the Public Investments Committee (PIC) that the Sh38.5 million that the arbitral tribunal awarded Bonfide comprised of Sh13.5 million for services offered as raised by Bonfide in an invoice, Sh20 million for interest due on the invoice and Sh4 million on account of performance bond.
“The claimant felt dissatisfied and appealed the said decision through a High Court case of 2017. The matter came up for mention February 6, 2018 and Bonfide was given 21 days to file submissions and then GDC will respond in another 21 days. The matter is to be heard in April 2018,” Mr ole Nchoe told the committee chaired by Abdulswamad Nassir.
He told MPs that the GDC had paid all sums payable to the contractor in full and that the contract had “no provision for mobilisaton or demobilisation but for full rig movement”.
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