In a surprising move, China Gezhouba Group Co. LTD, the Chinese construction and engineering powerhouse, has put the brakes on the Niger Republic’s ambitious Kandadji Dam project. The decision stems from the severe economic sanctions imposed on Niger by a coalition that includes the Economic Community of West African States (ECOWAS), the European Union, and the World Bank. These punitive measures were introduced in response to the ongoing political instability that has gripped the country.
A circular released by the Chinese firm on August 7, 2023, under the heading ‘Notice on the Shutdown of the Kandadji Dam Project and the Dismissal of Workers,’ confirmed the suspension of the project. According to a statement shared on Twitter by Zagazola Makama, a reputable security analyst and counter-insurgency expert with a focus on the Lake Chad region, the main reason behind this decision is the mounting financial burdens the company has encountered during the dam’s construction.
In addition to halting construction activities for an initial week, the circular highlights the impending termination of contractual agreements with local workers. The company is navigating this delicate process with an aim to facilitate an efficient and respectful dismissal of its workforce.
The statement from China Gezhouba Group states: “The recent political turbulence in Niger, particularly the events of July 26, 2023, has profoundly impacted the security situation. The collective imposition of financial sanctions by ECOWAS, the European Union, and the World Bank has created an insurmountable challenge for the company, making it impossible for us to meet our financial obligations.
“Given this force majeure scenario, we have no choice but to temporarily halt all construction activities for a week and initiate a phased termination of the contracts of our local workers. It is essential to note that this termination, based on force majeure, will not imply compensation for the affected employees.
“Nevertheless, we are committed to settling the outstanding wages and safeguarding the legitimate rights of the dismissed employees. Furthermore, we assure our displaced workforce that they will be given priority when recruitment resumes upon the resumption of the Kandadji Dam construction. As we navigate through these challenging circumstances, we seek your assistance and support.”
The suspension of the Kandadji Dam project, a significant infrastructure initiative, underscores the far-reaching consequences of the economic sanctions imposed on Niger. It remains to be seen how this development will impact the country’s political landscape and its long-term development plans.