The contractor working on Kazungula Bridge, DAEWOO has suspended construction works due to non payment of the debt it is owed by the Zambian government.
In a letter dated 5th December, 2020, DAEWOO Engineering and Construction Company Project Manager TAE KIM complained over the Zambian government’s delay to fullfil it’s obligation.
Mr Kim says his company had requested for financial arrangements but it has not received any feedback from the central government.
Mr. Kim said looking at the financial climate in Zambia with the Eurobond default,the contractor feels greatly discouraged.
He says the Company will now prioritize the balance of it’s running cost to pay employees’ wages.
In March 2019 , construction works at $260 Million Kazungula Bridge were stopped after Daewoo Engineering and Construction, the contractor in charge of the development shut down the site due to non payment by the Zambian government.