Court rules on multibillion solar power plant case
The Kabulasole Solar Power Station in Gomba District sits on about 280 acres of real estate, with the solar park occupying about 90 acres. Photo / File
What you need to know:
- Justice Stephen Mubiru in his April 18 ruling recognised as binding and enforceable the final award made by the London Court of International Arbitration that Great Lakes Energy company’s local partners were in breach of the project agreements by their failure to repay debt due to it.
The Commercial Division of the High Court in Kampala has pronounced itself on a protracted multibillion case between Great Lakes Energy Company-NV and its local partners regarding the construction of Kabulasoke Solar Power Project in Gomba District.
Justice Stephen Mubiru in his April 18 ruling recognised as binding and enforceable the final award made by the London Court of International Arbitration that Great Lakes Energy company’s local partners were in breach of the project agreements by their failure to repay debt due to it.
“Following an order granting leave for the enforcement of an arbitral award in the same manner as a judgment or order of this court, the reliefs of the nature sought by the respondent can only be obtained in accordance with the post-judgment procedures provided for under the relevant provisions of the Civil Procedure Act and the Civil Procedure Rules,” ruled Justice Mubiru.
Adding: “Preventing the award debtor from dissipating its assets where there is a real risk that it might do so, or that it might move the assets around to frustrate attempts to satisfy the final award, can be achieved only in that context. There currently is no application of that nature before the court to justify such intervention. The application for such relief, therefore, is premature.”
The local partners of Great Lakes Energy are named in the court documents as MSS Xsabo Power Ltd, Bryan Xsabo Strategy Consultants (Uganda) Limited, Mola Solar Systems (Uganda) Limited, and Consicara Global Investors Limited.
Court documents show that Bryan Xsabo Strategy Consultants, Mola Solar Systems and Consicara Global Investors Limited entered into investment and ancillary agreements for a power project in Uganda.
In the agreement, Great Lakes Energy as the lender would become a shareholder in the power project company upon paying for shares so allotted to it.
Great Lakes Energy was also tasked to look for engineers to construct the solar power station at Kabulasoke, Gomba District.
But a dispute arose when Bryan Xsabo Strategy Consultants and Mola Solar System accused Great Lakes Energy of inflating the cost of the engineering and construction component to a tune of around $6m (about Shs22.6b)
Bryan Xsabo Strategy Consultants then rescinded the investment they had with Great Lakes Energy and also revoked the latter’s allotment of shares.
Great Lakes Energy then commenced arbitral proceedings at the London Chamber of International Arbitration.
This also saw Great Lakes Energy file a case before the Commercial Division in 2021, among others, seeking interim protective measures, pending the conclusion of the arbitral proceedings, which the court ruled on April 18 in its favour.
