PM: $1.3B claim by Chinese against Aluntrint

The China Machinery Engineering Corporation (CMEC) and Aluntrint had in 2005 agreed a $3 billion deal for CMEC to design, construct, commission and conduct training for the planned smelter, he said.

However the new government of 2010 had cancelled the project but also seemingly failed to engage with CMEC which by 2013 had issued a final claim for compensation of $1 billion. While the then government had in 2014 set up a team to try to settle the issues, no progress was made, related Rowley. By 2015 CMEC said it would go to the Dispute Adjudication Board, but agreed to Aluntrint’s call for a time extension.

“The then government then did nothing further with CMEC which left TT exposed to over $1 billion in claims, despite an indication that CMEC was willing to discuss an amicable resolution of the matter,” said Rowley. On November 8, Finance Minister, Colm Imbert, chaired talks with CMEC whose claim now stands at $1.3 billion, but which wants an amicable solution and is open to options.

He said CMEC wants to be paid for onsite works such as compaction and pile-tests, construction of offices and workers camps, ground improvement, installation of a temporary batch plant, design work, and offshore support and visits from China.

“Cabinet has authorised the committee comprised of technocrats from the Ministry of Finance and the Ministry of Energy to engage experienced legal counsel to advise on the claims made by CMEC and to attempt to negotiate a settlement in the best interests of the citizens of TT,” Rowley said.