After setting their dispute amicably, Horizon Plantation PLC, one of the companies under MIDROC Investment Group, has effected 174.5 million Birr payment to the Government of Ethiopia. The payment is part of the unsettled 1.4 billion Birr Horizon owes to the Ministry of Public Enterprise following a privatization deal.

When the privatization deal took place, MIDROC bought Limu Coffee Plantation Development Enterprise (Limu), the Coffee Processing and Warehouse Enterprise, Horizon Addis Tyre and 36.7pc of the government’s share in Bebeqa Coffee Estate and Gojeb Agricultural Development.

The original privatization agreement stipulated the deal was for 2.03 billion Birr and that 35 percent of the deal should be paid as down payment. The rest 65 percent is expected to be settled within 5 years.

According to The Reporter, the dispute arose when the company failed to settle the payments expected of it during the first year. The deal was the buyer will pay a total of 836 million Birr with interest, which it did not.

Following this, 2 years ago the former Privatization and Public Enterprises Agency filed a suit at the Federal High Court for breach of contract. After the court rendered decision and execution was filed, the Agency was given 2 options; either to auction Horizon’s properties or for Horizon to settle the payments. Horizon went with the earlier option.

However, the parties reached to amicable solution that Horizon will pay 1.4 billion Birr by July 7, 2017. As part of this agreement, Horizon had already paid 174.5 million birr for the transfer of the Coffee Processing and Warehouse Enterprise.

Source: The Reporter