Africa-Press – Tanzania. Unguja. A joint venture dispute case on infrastructure projects in Zanzibar, including the construction of key roads and the upgrade of Pemba Airport between Mecco and Propav Infrastructure has on Thursday come up for mention at the High Court in Tunguu.
Apart from Propav Infrastructure Ltd, other respondents in a civil case No1 of 2024 are Propav Spain, Propav Mecco Zanzibar Road Construction Ltd, Pemba Airport Construction Consortium Ltd, Silvio Costa Adrade and Bruno Filipe De Oliveira Carvalho
The case was, however, adjourned by the presiding judge George Kazi to February 27, upholding temporary orders from last month that restrain any further work on the projects until the legal battle is resolved.
Last month, the High Court of Zanzibar issued temporary orders restraining the project’s progress pending the resolution of the legal battle.
This is after Mwananchi Engineering Construction Company (Mecco), filed an ex parte application seeking to halt all operational activities related to the projects until the court hears their full case against the other partners, Propav Infrustucture Ltd.
Mwananchi’s grievances range from alleged usurpation of powers and abuse of majority shareholder positions to political interference and failure to comply with the terms of their agreements.
According to the applicant, the issues threatened the success of the projects and could lead to the mismanagement of funds allocated by the Tanzania Government.
They further argue that the ongoing execution of project activities, including decision-making, without their rightful involvement raises serious concerns about transparency and accountability.
“The Respondents, their officers, representatives, agents or any person acting on their behalf are hereby restrained from calling, convening or attending, undertaking any meeting, be it a shareholders meeting, authorized representatives meeting, directors meeting or any other similar meetings, save only for purposes of negotiation of the dispute under the mechanism provided under shareholders agreement or the law, pending hearing of this application inter parties,” ordered Judge Kazi.
In its ruling, the Court acknowledged the urgency of the matter and recognized the potential for irreparable harm if the projects were allowed to proceed uninterrupted.
The orders restrict the Respondents (Propav Infrustucture Ltd), the other partners in the joint venture, from undertaking any further operational activities, holding meetings, or making decisions pertaining to the projects.
The projetcs in question include Tunguu-Makunduchi Road, Fumba-Kisauni Road, Mkoani-Chake Chake Road, and the Pemba Airport upgrade hold significant importance for both economic development and connectivity in Zanzibar.
On June 20, the Revolutionary Government of Zanzibar (SMZ) signed a $428 million (Sh1.01trillion) agreement with the UK Export Financing for the expansion of the Pemba Airport and to construct various road networks in Unguja and Pemba.
The projects are financed by Citibank London and Deutsche Bank London and guaranteed by the British Government through the Export Credit Agency, United Kingdom Export Finance (UKEF).
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