China Gezhouba suspends construction of Niger dam following military coup

Aerial view of the Niger river and Niamey city (Image: homocosmicos via AdobeStock - stock.adobe.com)

Chinese contractor China Gezhouba Group has suspended construction of the the Kandadji dam in Niger following a coup in the country.

Coup-related sanctions have led to a halt in key funding, the company said in a letter seen by Reuters on Thursday.

The 500 billion CFA franc (US$808 million) project, located about 180 kilometres northwest of the capital Niamey.

It is set to have a capacity of 130 MW and also provide irrigation and boost food security in one of the world’s poorest countries.

“We find ourselves forced to halt all our construction activities,” China Gezhouaba Group said in a letter to a local work inspection body dated 7 August.

The letter said the military takeover on 26 July and ensuing economic sanctions caused it to declare force majeure on the project.

Local contracts will be progressively terminated after due salaries are paid, the company added, promising to give redundant employees priority for re-hire once construction resumes.