A negotiating meeting was held from 06 to 08 September 2018 in Nairobi, Kenya, between, on the one hand, the State Negotiators and the EGL, and on the other hand, the Sponsors of the Ruzizi III power plant Project, consisting of Industrial Promotion Services, IPS Ltd (Kenya) and SN Power AS (Norway); each of the two parties accompanied by his advisors.
This meeting, which was preceded by a preparatory meeting between the EGL and the State Negotiators on 5 September 2018, was aimed to finalize the remaining outstanding issues and initialing the documents to be submitted for signature to the concerned parties.
During the preparatory meeting, EGL and State Negotiators inventoried six (6) points to be discussed again with the Sponsors. These points are relating to:
- the offtakers' guarantee;
- the applicable law to State guarantee;
- the deadline for remedying a possible defect related to the technical constraints of the constructions;
- the coordinated and optimized management of the Waterfall of the Ruzizi River;
- the delivery of the works by the Project Company at the end of the contract period; and
- the change in the shareholding structure of the Project Company and of private company.
During the three days of the meeting, the two parties agreed on all the points that had previously been under discussion except the point on the applicable law to the Guarantee that each State will have to submit to the Project Company to cover its National Electricity Company default of payment.
In this regard, the Sponsors want the English law to be applied in order to have a neutral right especially in case of disputes while the Contracting States want the national law to be applied in order to safeguard the sovereignty of each state.
In order to crystallize the progress already made during this meeting, the State Negotiators mandated the EGL, to initial with the Sponsors the Project Agreements documents which will be finalized after having reached a consensus on the applicable law to State Guarantees. The initialed documents will then be submitted to each State for internal consultation.
Parties have two weeks to finalize the only remaining point of divergence.