AAE Systems faces legal charges in Uganda for $1.2bn geothermal project

US-based infrastructure firm AAE Systems has been sued by Apex Petroleum Uganda Limited over arrangement fees pertaining to $1.2bn geothermal power project in western Uganda.

Apex Petroleum has filed a petition through Capital law partners and advocates against AAE with the Justice and Constitutional affairs minister seeking nearly $60m remuneration for the company's contract services.

Earlier in 2010, Apex Petroleum Uganda was contracted to launch geothermal projects in the country, which will be executed by AAE locally. Apex was mandated to work through its director Ahmed Mutimba. In addition, AAE was liable to pay 5% of project costs, when the company secures power purchase agreement for the project from Uganda government.

However, Apex has been allegedly disowned by the American company ahead of PPA execution between Uganda Electricity Transmission Company Limited (UETCL) and AAE.

In its petition, Apex's legal representatives claimed that AAE has unveiled a media advert with Ahmed Mutimba stating that he does not work for nor represent AAE systems incorporated, reported New Vision citing legal documents.

"Our appeal to you is that you prevail upon AAE systems to perform their contract with our client and pay it USD 60,000,000 which our client is rightfully entitled to," the letter read.

Source: geothermal.energy-business-review.com
30-July-2013