Symbion Power reassures workers, creditors
What you need to know:
- Independent power producer Symbion Power Limited has appealed its creditors and staff – who the company owes the equivalent of tens of billions of shillings – to remain calm, saying it is currently involved in arbitration with Tanzania Electric Supply Company, and will settle “legitimate and valid” outstanding matters once this is concluded
Dar es Salaam. Independent power producer Symbion Power has reaffirmed its commitment to Tanzania despite what it describes as ‘difficult years’ after the company found itself in a major legal dispute with the Tanzania Electric Supply Company (Tanesco).
“The future looks bright for both of us –Symbion and Tanesco— I am confident that negotiations going on at the international instruments will end up successfully,” said Symbion Chief executive officer, Paul Hinks as he respond to media questions about Symbion staff who were recently retrenched and other related issues.
“Mr Hinks added: Whilst the two arbitrations we started at the International Chamber of Commerce (ICC) in Paris and the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank in Washington DC are still ongoing, our team has been engaged in lengthy settlement discussions with the Tanzania government.
What transpired in the course of discussions and negotiations between the two sides (Symbion and Tanesco) is yet to be revealed, but the respective parties are optimistic that the matter will be settled peacefully, a move which stakeholders in the energy sector say ‘would help to revert the two sides to mutual understanding and friendship’.
However, Symbion chief executive officer declined to comment on the inner-part of the talks, noting that he was not at liberty to disclose any details from the negotiations but both sides are keen to reach an amicable agreement.
As regards to Symbion creditors and staff who have recently been retrenched, Hinks said staff and creditors with valid claims should remain calm, noting that “they can be assured that we will be resolving any legitimate and valid outstanding matters once the arbitrations are over, or we have settled with the government; whichever comes first.”
He allayed public fears saying that Symbion Power Plant assets in Tanzania “are not at any risk as they are held under a debenture by a bank,” describing recent reports to the contrary as “erroneous and a distortion of reality.”
Last week, a broker issued a liquidation notice under the order of the High Court of Tanzania to liquidate the Symbion plant at Ubungo over Sh12.24 billion debt caused by long-unpaid salaries for its 43 employees. The workers say they have not been paid their salaries for more than 30 months.
The notice - signed by the deputy registrar of the High Court’sDivision of Labor, Warsha Ng’humbu - concerns assets which the company says were already under a creditor. The company’s lawyer, Mr Emmanuel Makene, said the seized properties are already held by the Dowans Holding (Costa Rica) over a debt of Sh110 billion, and by the CRDB against a $13 million debt owed to the bank.
