President Bio Julius Mattai
British Lawyers representing ARISE IPP have written to the government of Sierra Leone on the purported termination of the Pepel Port and Rail Agreement earlier signed with ARISE IIP, and which the government of Sierra Leone, in a Press Conference, confirmed.“In the Press Conference, GOSL stated that the Lease Agreement was now terminated and that a new lease agreement has been negotiated with, and will be granted to, Kingho. GOSL’s representatives stated that the reason for termination of the Lease Agreement was that Arise purportedly did not take any steps to complete the CPs (or waive them), as required by the Lease Agreement,” the letter, which was dated Tuesday 1st November from Linklaters, stated. The lawyers stated that such a position adopted by the Government of Sierra Leone is wrong, as the date for CPs has not passed and that there is an agreement between GOSL and their client (ARISE) to defer the CPs.
They revealed that any attempt by the government to rely upon the CPs to terminate the Lease Agreement would be an improper attempt to rely upon its wrongdoing, noting that Arise has repeatedly indicated its intention to perform work under the Lease Agreement and invited the government to complete the CPs, as provided for in Section 1.3 of the Lease Agreement.
The lawyers noted that they have been instructed that should the Government of Sierra Leone continue with the course of action it has set out in the Press Conference, they will initiate legal action against the Government of Sierra Leone.
“ However, our client wishes to continue its relationship with the GOSL. To that end, our client requests GOSL to confirm, by Today Friday 3 November 2023, that it will not take any further steps with Kingho, which will result in a breach of the Lease Agreement; and it will take all steps to comply with the CPs and implement the Lease Agreement,” they cautioned
They noted that failing to do the above will force ARISE IIP to start legal action against the Government of Sierra Leone, including but not limited to injunctions, arbitral claims for interim relief and claims for damages, requesting an urgent response on this issue as soon as possible, by no later than 2 November 2023.
It could be recalled that the government and people of Sierra Leone suffered huge embarrassment over the so-called termination of the SL Mining agreement, for which the government of Sierra Leone was defeated in the International Court in 2021.
The Government ended up licking its wound with an out-of-court settlement, which had already dented the image of Sierra Leone.
