ASJV denies it terminated Mtentu project due to alleged ‘financial inability’

Aveng and Strabag International on Thursday
reasserted that the Aveng-Strabag Joint Venture (ASJV)
had terminated the Mtentu river bridge
contract as a result of force majeure, adding in a statement that the
termination “had nothing to do with either of the ASJV members’ financial ability
to perform their obligations”.

Contesting allegations by Sanral that the JV may
have terminated the contract due to financial difficulties
being faced by Aveng, the JV reiterated that the ASJV had terminated the
contract following civil unrest, commotion, protests and threats of harm that
resulted in ASJV being denied access to the site and the ability to safely
continue the execution of the project.

ASJV further added that the gravity and
unprecedented nature of the situation was acknowledged by Sanral.

“The ASJV at all times emphasised that the force
majeure event could not be considered to have come to an end until such time as
the works could be safely resumed without consistent or continued endangerment
of personnel or interruption of activities,” the statement said on Thursday.

According to the statement, either party had the
right to terminate the Mtentu contract if a force majeure event prevented the
execution of substantially all of the works in progress for a period of 84 days
and/or if events or circumstances outside the control of the parties made it
unlawful or impossible for the contractor to fulfil
its obligations.

The Mtentu contract includes comprehensive dispute
resolution provisions including final determination by the High Court.

The construction of the bridge would have resulted in a 1,132-m-long bridge crossing the Mtentu river, for the South African National Roads Agency Limited (Sanral), under the now-terminated Mtentu contract.  8610http://www.engineeringnews.co.za/article/asjv-denies-it-terminated-mtentu-project-owing-to-alleged-financial-inability-2019-02-07