Nairobi, June 17 -- The High Court has rejected a request by a Chinese contractor to compel the Kenya Electricity Transmission Company (Ketraco) to set aside Sh570 million pending arbitration in a dispute where the service firm is pursuing Sh1.5 billion compensation over delays in the Kenya-Tanzania power interconnection project.

The High Court, however, ordered Ketraco to appoint an arbitrator within seven days to resolve the dispute with North China Power Engineering Company Ltd (NCPE), warning that the contractor would be free to appoint one unilaterally if the State corporation fails to comply.

The ruling clears the way for arbitration in a payment row arising from one of East Africa's flagship regional power projects, which links e...