ST.KITTS AND NEVIS GOVERNMENT FACES LAWSUIT OVER ANNULED SOLAR PLANT PROJECT
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The government of St. Kitts and Nevis is currently facing the possibility of a lawsuit after abruptly scrapping a signed contract with Leclanché, a renewable energy company, for the construction of the largest solar plant in the Caribbean. The decision was made by the new Drew Administration, which has chosen to abandon the Leclanché contract in favor of securing a EC$300 million loan from Afreximbank to finance the same solar plant project.The Leclanché contract had been signed in early 2022 with the previous PM Harris-led government, and the project had been officially launched in June of the same year, with construction initially scheduled to commence in August 2022. However, the new Drew Administration put a halt to the planned construction and subsequently annulled the Leclanché project and its associated agreements.This abrupt change in direction has raised concerns and questions about the decision-making process behind opting for a loan from Afreximbank rather than proceeding with the previously agreed-upon Leclanché contract. The move has not only cast doubts on the government’s commitment to renewable energy initiatives but has also potentially exposed them to legal repercussions from Leclanché.As stakeholders assess the situation, the future of the solar plant project hangs in the balance, with potential legal battles and financial implications looming. The case highlights the challenges that can arise when there are significant changes in government administration, impacting ongoing projects and international agreements.
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