Construction & Infrastructure Disputes
YapiMerkeziInsaatVe Sanayi AnonimSirketi and YapirayDemiryoluInsaatSisetermleri Sanayi VeTicaretAnonimSirketi
The Clients were the contractors under an Engineering, Procurement and Construction (EPC) plus financing contract for the rehabilitation and modernisation of a railway line running from the north to the south of Zambia, at the Contract Price of €978,093,639. The Employers were Zambia Railways Limited and Industrial Development Corporation Limited. Phase 1 of the project was undertaken to a point of 93% completion, with interim payment certificates issued and partly paid, but the employer subsequently tried to deny liability for payment, on the grounds that various approvals were not obtained. The importance of the matter lies firstly in the central role that the national rail line plays in Zambian goods transportation, and the project to upgrade it. Secondly, for Zambian jurisprudence, it will set a precedent on the role of an engineer and whether interim payment certificates can remain unpaid, as well as liability of consortium members towards each other. The matter also shows the expertise of MAY and Company in complex construction law matters.
Lead Partner: Mulopa Ndalameta
Team Members: Hellen Chitalu Chileshe
MAY and Company is representing Bitumen World Civils (the “Client”) in connection with the upgrading of the existing 205km Chingola to Solwezi Road in Zambia’s Northwestern Province into a dual carriageway (the “Project”). The Client has been engaged as the engineering, procurement, and construction (EPC) contractor under a broader concession held by Bert Pave and Maintenance Limited, which was awarded the Project by the Road Development Agency (RDA). Our role includes advising the Client on the EPC agreement from a Zambian law perspective, including reviewing key risk allocation and compliance issues. The concession agreement and the associated financing agreements, entered into with the Project’s sole lender, WIA Pty, a South African-based funder, have already been signed. This transaction aligns with the Zambian government’s renewed focus on accelerating infrastructure development, particularly in road transport, as part of its broader pro-investor economic strategy. This shift has seen increased emphasis on public-private partnerships and cross-border connectivity projects aimed at unlocking investment, enhancing trade corridors, and improving regional integration. The Chingola to Solwezi Road is a particularly strategic corridor, serving as the primary access route to the mining hub of Solwezi, home to some of Zambia’s largest copper mines. Upgrading this road to a dual carriageway is expected to reduce transit times, enhance road safety, support mining logistics, and facilitate the movement of goods and personnel. The Project therefore plays a vital role in supporting the mining sector and contributing to national revenue and export capacity.
Upgrading of the Existing 205Km Chingola to Solwezi Road
Fast Track Energy Procurement Framework
We act for Foreign, Commonwealth and Development Office (“FCDO” or the “Client”) through the Green Cities Energy and Infrastructure Programme (“GCIEP”) in the development of a fast-track procurement framework for power generation in Zambia. The programme arises from the severe energy deficit that Zambia is currently experiencing. To address the ongoing energy crisis, the Zambian Government requested support of the British Government, through the FCDO, to develop a standardized fast-track procurement framework aimed at accelerating private sector-led power. To this end, our role has been to support the Client through GCIEP in the formulation of suitable risk allocation structures in implementation agreements and government support agreements to ensure that grid connected power generation projects are bankable whilst protecting the interests of the Zambian Government. Our role is further to assist in drafting standard requests for qualifications (“RFQ”) and request for proposals (“RFP”) and associated documents to support a fast-track procurement process of renewable energy that can achieve financial close within 18 months. This project is significant for Zambia as it reflects the Government’s strategic approach to resolving the country’s energy crisis. By developing a standardised fast-track procurement framework for power generation, Zambia is laying the groundwork for quicker project implementation, faster integration of power into the national grid, and more reliable distribution of electricity to end-users. Once operational, the framework will reduce procurement delays, improve investor confidence, and facilitate the rapid scaling of renewable energy projects. Importantly, the increased availability of power will not only attract further foreign investment but also create a more stable environment for business operations and economic growth across key sectors. The programme is also intended to unlock the bankability challenge that energy projects are facing in Zambia (where ZESCO is the offtaker).
We are acting for BHL (the “Client”) in a joint venture between Buks Haulage Limited and First Quantum Minerals (FQM), in a public-private partnership project for the design, construction, financing, operation, maintenance, and transfer of a 371km road from Mutanda to Kaoma in the North-Western and Western Provinces of Zambia. The project aims to improve trade routes and enhance the movement of goods and services within Zambia and the broader Southern African region. Our role includes reviewing, drafting, and negotiating the concession agreement with the Zambian government, as well as the EPC and O&M agreements; providing legal advice on the joint development agreement and shareholders agreement; assisting with corporate structuring and project financing; managing transaction processes, securing permits, and ensuring compliance with regulatory requirements. This road will serve as a critical trade corridor, linking Zambia south-westward to the Port of Walvis Bay in Namibia and northward to the Democratic Republic of Congo (DRC). This trade route will facilitate both import and export activity by providing a shorter, more efficient route, which will significantly reduce transportation costs, and transit times for bulk commodities, fuel, and manufactured goods. In addition to bolstering Zambia’s connectivity to regional markets, the road will serve as a key driver of economic activity along its length, promoting cross-border trade, regional integration, and the development of ancillary infrastructure such as logistics hubs and border posts. The project is therefore aligned with Zambia’s broader infrastructure development strategy and regional economic cooperation objectives.
