the deal wrote:VituVingiSana wrote:http://www.businessdailyafrica.com/Corporate-News/Transport-PS-nominee-pledges-to-end-RVR-deal/-/539550/1888468/-/wa51ga/-/index.html
Rift Valley Railways’ contract to manage the rail link between Mombasa and Kampala will be terminated if the government buys a proposal by Transport principal secretary nominee Nduva Muli.
this thing has been loss making thus it has been a drag on Tranny's earnings....oh hail GoK for another populist move...do they have the money to refund Transcentury and others? Always read further...dont rely on newspaper reports to draw conclusions...let them cancel...for me I see it as payday...just like if UG was to cancel Umeme's concession...do you know how much money I would get? This are agreements with massive legal & financial implications...you just dont wake up & say its over!
They might not cancel that deal because most of the times when these contracts are done, there is always clauses that will protect each party, this time i think Transcentury is well protected, unless there is a clause that talks 'if they fail to meet their part of agreement eg development etc...' then maybe the govt can use that clause to take back, which i highly doubt. we dont even hv money to pay them.
You cant win, unless you first begin....