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Business
Algeria ``Fails`` to Pay Japan Consortium for Highway Construction: Japanese Media
Friday, January 7, 2011
Tokyo - (PanOrient News) Algeria "has failed" to pay part of highway construction costs to a consortium of five Japanese companies and Japan will deal with the matter through diplomatic channels, Kyodo News quoted Land, Infrastructure, Transport and Tourism Minister Sumio Mabuchi as saying today.
Mabuchi did not unveil the amount of nonpayment, but it is estimated in Japan's construction industry to top 100 billion yen (about $1.2 billion) -- an amount that could damage earnings of the firms involved -- of the 341 billion dinar (about 540 billion yen or $5.4 billion) order, addording to Kyodo.
The Algerian Public Works Ministry's National Highway Agency, which placed the order in 2006, has refused to pay for such reasons as a delay in the construction work and a difference from the original design, Japanese industry sources told Kyodo News.
Land, Infrastructure, Transport and Tourism ministry would share information with the Foreign Ministry over the matter and ask the Algerian government to improve the situation through diplomatic channels, Mabuchi said.
The order for the consortium of major construction contractors Kajima Corp., Taisei Corp., Nishimatsu Construction Co. and Hazama Corp. plus trading house Itochu Corp. is to build a 400-kilometer eastern part of a 1,200-kilometer highway that will link Algeria's east and west, Kyodo said.
PanOrient News
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