Angolan government rescinds contracts with Aenergy company

6 September 2019

The Angolan government has rescinded 13 contracts for the electricity sector signed with the Aenergy company for “breach of the principle of good faith and breach of trust” according to a presidential order published in the Diário da República bulletin and quoted by the local press, including Jornal de Angola.

The document, dated 22 August, said that the contracts approved between July and August 2017 were for the installation of new production plants, technical assistance and maintenance for electricity plants with General Electric (GE) brand equipment, as well as the construction of small water supply systems.

During the execution of the contracts, the order said, irregularities by Aenergy were noted, namely the acquisition of four turbines under GE Capital Limitada financing, “without these being outlined in the contracts concluded with the sector.”

Given the need for the work to be completed, the order authorises the Minister of Energy and Water, João Baptista Borges, to terminate the contracts, concluded under the Loan Agreement between the Ministry of Finance and GE Capital Limitada, based on, “imperative public interest.”

The contracts had been signed by power production company Prodel and the National Electricity Distribution Company (ENDE), representing the Ministry of Energy and Water, and Aenergy, under a loan agreement signed by the Ministry of Finance and GE Capital Limitada.

Aenergy was founded in 2012 in Angola and has since been expanding in Africa and is present in countries such as Cameroon, Ghana, Namibia, Mozambique and São Tomé and Príncipe. (Macauhub)

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