The impact of economic sanctions on the construction of the Kandadji hydroelectric dam in Niger
Niger is facing a new consequence of the economic sanctions that are hitting it. Indeed, the construction of the Kandadji hydroelectric dam, in the so-called “Three Borders” area, has been put on hold. The Chinese group Gezhouba, in charge of the project, announced this decision in a letter addressed to the labor inspectorate of Tillabéri. This interruption of work will also lead to a “gradual layoff” of local workers.
The China Gezhouba Group justifies this decision by referring to a “case of force majeure”. Due to the sanctions imposed by the Economic Community of West African States (ECOWAS), the European Union and the World Bank, it is now “impossible” to settle the accounts due to the company. Consequently, the group is forced to stop all construction activities, thus causing the gradual termination of the contracts of local workers.
However, the China Gezhouba Group undertakes to liquidate the wages that are due to the dismissed employees, despite the fact of not being obliged to compensate the employees under the invoked “force majeure”. This decision jeopardizes the hydroelectric dam project, which is essential for Niger’s food security and energy independence. Indeed, the dam was to allow the irrigation of 45,000 hectares of land and to increase the country’s electricity production by half.
Initially scheduled to be operational in 2025, the project has already been delayed several times, in particular due to the Covid-19 pandemic. With this new interruption of work, it is very likely that its completion will be further delayed.
This situation highlights the negative consequences of economic sanctions on the development projects of the affected countries. Despite the benefits expected from the construction of the Kandadji hydroelectric dam, Niger is faced with major obstacles that hinder its economic and social development. The search for alternative solutions to overcome these challenges thus becomes essential to ensure the country’s sustainable growth