China Gezhouba Group Co. LTD, a prominent Chinese construction and engineering firm, has announced the suspension of the Niger Republic Kandadji Dam project due to the financial sanctions imposed on the country by ECOWAS, the European Union, and the World Bank. The sanctions have been enacted in response to the ongoing political instability in the French-speaking nation.
In an official circular dated August 7, 2023, titled ‘Notice on the Shutdown of the Kandadji Dam Project and the Dismissal of Workers,’ the company conveyed its decision to halt construction activities on the dam. The statement was shared on social media by Zagazola Makama, a security analyst and counter-insurgency expert focusing on the Lake Chad region.
China Gezhouba Group cited its inability to settle bills incurred during the dam’s construction as a direct consequence of the financial sanctions. The firm also expressed concern about the worsening security situation in Niger following the political turbulence that transpired on July 26, 2023.
Due to the perceived force majeure situation, the company disclosed its intention to cease construction activities for a week and initiate a phased termination of contracts with local workers. The statement highlighted that this contractual termination would not involve compensation for the dismissed employees; however, the firm pledged to fulfill outstanding wage payments and protect the legitimate rights of affected workers.
In a promise to prioritize the rehiring of laid-off workers once the construction of the Kandadji Dam resumes, China Gezhouba Group sought assistance and support from relevant stakeholders to navigate the challenges posed by the contract termination.
