Cable project in fresh registration

In the first amendment involving Etisalat, TEAMS Company Ltd, and Alcatel Lucent agreed that in the contract dated 11 December 2007, for the supply and construction of submarine cable system linking the United Arab Emirates and Kenya, the name TEAMS was incorrectly given as The East African Marine System Limited.

The parties then agreed to amend the contract by replacing the words 'The East African Marine System Limited' wherever they appear in the contract with the words 'TEAMS Company Limited'. Other terms of the contract remained unchanged.

In the second amendment, Etisalat and Teams Company Limited (TCL) agreed that all rights and obligations of TCL under the contract were novated to TEAMS. Consequently, TCL irrevocably transferred all its rights under the contract to TEAMS, while the other parties irrevocably released TCL from all obligations or liabilities under the earlier contract. The parties also agreed that the project shall be completed before 28 September 2009.

Speculation over the ownership of the cable had prompted some potential investors to seek a clarification from the Government in regard to the name of the company getting into the contract.

The cable project has been guaranteed by the Communications Commission of Kenya (CCK), the industry regulator. The Government, through TEAMS, owns 85% of the project while Etisalat owns 15%. The TEAMS cable is expected to link the country with the rest of the world through Fujairah and the port of Mombasa.

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