FQM Pulls Breaks On ZESCO Job

By JIMMY CHIBUYE
KALUMBILA Minerals Limited and First Quantum Minerals (FQM) have taken Zesco to court for allegedly engaging a Chinese firm to construct a transmission line despite the company being allegedly rejected by the Zambia Public Procurement Authority.
This is in a case in which Zesco has engaged China Jiangxi Corporation for International and Technical Co-operation (CJCITC), as its preferred contractor, to make transmission lines at the Trident Project near Kalumbila in North-Western Province.
Zesco was given the contract by FQM but it allegedly offered the works to CJCITC, which the mining company apparently does not want.
Consequently, the Lusaka High Court has granted Kalumbila Minerals and FQM an ex parte court order or injunction restraining Zesco from allowing CJCITC from proceeding with the work.
High Court judge Flavia Chishimba gave the Canadian registered company the order after reading the affidavit in support of ex parte originating summons filed by company operations manager Tristan Pascall.
This is contained in an ex parte order for an interim measure of protection of an injunction signed by Ms Justice Chishimba obtained by the Zambia Daily Mail from the Commercial Court.
“It is hereby ordered that an order of interim of measure of protection by way of an injunction be and is granted to restrain the respondent [Zesco] whether by themselves and or their agents and or whomsoever person or persons from allowing CJCITC, whether by themselves and or their servants and or agents and or whomsoever persons, to proceed with any works whether in respect of the works the respondent was contracted to undertake at the Trident Project near Kalumbila,” reads part of the order.
The judge said the order will be in force pending the hearing and determination of the arbitral proceedings.
The order is in relation to the connection agreement dated November 28, 2012 between Kalumbila Minerals and Zesco.
Ms Justice Chishimba said Kalumbila Minerals and FQM have undertaken to cover Zesco for any damages the power utility may suffer as a result of the order for protection.
“The applicant hereby undertake to indemnify the respondent for any damages that the respondent may suffer as a result of this order of an interim measure of protection by way of an injunction should the court afterwards be of the view that the order should not have been granted,” the order reads in part.
Zesco director of business development and corporate affairs Besty Phiri declined to comment on the matter when contacted by the Zambia Daily Mail.

Posted by Editor on May 13, 2013. Filed under LATEST NEWS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry