RABAT Feb 16 (Reuters) – Lydec, a unit of France’s Suez Environment which provides utility services for Morocco’s biggest city, said it had been ordered to pay 546 million dirhams ($64.2 million) by Casablanca’s city council for alleged breach of contract.
“On February 10, (Casablanca’s City Council) sent a letter to Lydec requesting that a payment for the said amount be paid,” Lydec said in a statement, noting that the claimed amount related to “technical and economic commitments specified” under a 30-year concession contract which began in 1997.
Lydec, 51-percent owned by Suez Environment, said it “has always objected to both the proceedings and the findings of the audit” conducted by Casablanca’s city council.
“Under the provisions of the services management contract … Lydec will resort to a complementary expertise by a specialized and independent firm,” it added. (Reporting By Souhail Karam. Editing by Mark Potter)
