White and Case LLP formally instructed

Government lawyers have just returned from the United Kingdom where they formally instructed London-based law firm, White and Chase LLP to represent them in a high stake arbitration matter with Chinese contractor, SinoHydro.

Government terminated Sir Seretse Khama International Airport (SSKIA) terminal expansion deal, but SinoHydro decided to go for arbitration challenging the validity of the termination. Permanent secretary in the MIST Dikagiso Mokotedi confirmed to Botswana Guardian on Wednesday. “Our legal team has just returned from the UK, where they have given instruction to our legal representative. We are now waiting for the date of hearing to be set.

The delegation was composed of the MIST chief state counsel Don Ruhukwa, accompanied by the deputy attorney general Keborapele Moesi, as well as the consultant Naco Stewart International."Part of the reason Sinohydro feels aggrieved is because MIST have taken performance bond which is around P65m. Further, MIST has been holding the Ascertained and Liquidated Damages (ALD)- this is the amount where for every certificate issued the owner of the building withholds 10 percent of the amount paid until such an amount reaches the equivalent of 10 percent of the total amount of the project.

However, during the first stage of arbitration MIST agreed to pay P11m to Synohydro, which is an equivalent of the work done thus far.