CWE challenges Sinohydro contract in Uganda

In recent months — spurred by the attacks on Chinese gold-diggers in Uganda — Chinese media have been reflecting on the worsening perception of Chinese investment in Africa and the responses that this might need from China.

But one of the most recent news — an article in a Ugandan newspaper about a lawsuit filed by 54 households demanding more compensation for the effects of the Karuma dam project, awarded to Sinohydro — suggests another interesting trend. In parallel to this lawsuit, CWE, another state-owned Chinese company, challenged the award of the tender to Sinhohydro. The article gives no details, but this must be one of the first instances for two large Chinese state companies to battle with each other in a foreign court. This suggests that, at least in some instances, the state’s mitigating role is fading and the companies are increasingly behaving like market actors, even risking the loss of reputation abroad.

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2 Responses to CWE challenges Sinohydro contract in Uganda

  1. Rom D says:

    It seems as if CWE got more than a consolation price:
    “Uganda awards another hydro-electric project to Chinese firm”
    http://www.reuters.com/article/2013/07/29/uganda-electricity-idUSL6N0FZ19F20130729

  2. […] assertiveness in dictating the terms of business with China as well as a more open competition between Chinese companies. In telecommunications alone, Chinese companies have faced investigations over corruption related […]

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