Daewoo Engineering & Construction (Daewoo E&C) recently announced that the Botswana-Zambia Kazungula Bridge project, which was temporarily suspended last month due to the failure to pay construction costs by the Zambia-ordered owner, has resumed following the deposit of construction costs.
On March 28, Zambia's minister said he would immediately pay $16.72 million in unpaid construction costs, according to Daewoo E&C. In response, Daewoo E&C resumed the construction in earnest from April 1.
Under the judgment that losses were often incurred in the past due to domestic construction companies' failure to actively cope with unpaid construction costs for owners at overseas operations, Daewoo E&C temporarily halted the project to prevent possible losses in the future in the bridge project.
Under the agreement, Daewoo E&C expects other negotiations with the owner, including the ongoing construction period and design changes, to proceed smoothly.
"It is fortunate that the construction, which was temporarily suspended due to the unpaid payment, will resume quickly and we will continue to operate the site while securing as much authority as possible for the builder under the terms of the contract," a Daewoo official said.
