Civil Appeal No. 620 of 2023
The plaintiff, a Joint Venture between JV Tangerm Construction Co. Ltd and Technocombine Construction Ltd, was awarded two contracts by the 1st defendant, Tanzania Ports Authority (TPA): the 'First Contract' (9 September 2009) for design and construction of a container stacking yard at Zambia Yard, Tanga Port, and the 'Second Contract' (10 December 2009) for design and construction of container stacking yards at Ex-AMI and Ex-Copper Yards, Dar es Salaam Port. Both contracts, governed by FIDIC Conditions of Contract, were varied to change construction methodology from 'Consolid' to 'Lean Concrete', increasing costs substantially. The plaintiff alleged that TPA breached both agreements by unilaterally changing methodology without proper consultation on costs, delaying execution of the addenda for years, failing to hand over the Ex-Copper Yard (39% of the Dar es Salaam project) despite mobilization of resources, delaying acceptance of the plaintiff's notice of termination for about a year, failing to timely hand over the completed Ex-AMI site, delaying payment of certified interim amounts, and failing to settle the Final Account claims. The plaintiff claimed extensive special damages (over TZS 45 billion in various heads) plus interest and general damages. TPA and the Attorney General denied wrongdoing, contending that variations were mutually agreed, that non-handover of Ex-Copper Yard was justified and substituted with Ex-Revenue Yard with the plaintiff's consent, that termination was properly effected, and that outstanding claims lacked proof.
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