The construction of the Kandadji hydroelectric power plant in southwestern Niger has been suspended following coup-related sanctions that halted key funding, French media has reported, citing a letter from the China Gezhouba Group.
According to the Chinese construction company, the military takeover in the country on July 26 and the subsequent economic sanctions by ECOWAS, the European Union and the World Bank, led it to declare "force majeure" on the ongoing project. It was noted that the sanctions made it "impossible to settle the accounts of the company."
"In the face of force majeure, we are forced to suspend all construction activities for one week and proceed to phased termination of local workers' contracts," the company said in the letter to a local work inspection body, as cited by media.
The construction giant also announced gradual contract terminations for local workers after due salaries are paid. It added that the termination of contracts due to force majeure would not entail compensation for the dismissed workers. However, the company promised to give priority to laid-off workers for re-employment after the resumption of construction.
The $808 million project, located about 180 kilometers northwest of the capital Niamey, is expected to have a capacity of 130 MW, provide irrigation of 45,000 hectares of land and increase the country's electricity production by half. Among other things, the project is aimed at boosting food security in one of the world’s poorest nations.
After numerous delays, particularly related to the COVID-19 pandemic, the hydropower plant was scheduled to be operational in 2025. However, the recent suspension of work threatens to further delay its completion.
Earlier, the Economic Community of West African States (ECOWAS) suspended financial aid to Niger, imposed a travel ban and asset freeze on the rebels, their families, and anyone who agrees to "participate in the institutions" created by the rebel military. ECOWAS announced the closure of its borders with Niger and the suspension of trade and financial transactions between the regional bloc and the country.
The World Bank also suspended funding for all operations in Niger, except for the private sector, in the light of the military takeover in the country.
A coup took place in Niger on July 26, when President Mohamed Bazoum was ousted and detained by his own elite guard, led by Gen. Abdourahmane Tchiani. The leaders of most Western countries and ECOWAS condemned the military coup. In early August, the regional organization adopted a plan in case of military intervention in Niger.