RJR News has been informed that the National Water Commission (NWC) has now decided to take legal action against China Harbour Engineering Company (CHEC) after not receiving a favourable response to its claim for damage to its pipelines.
A source Wednesday afternoon told RJR News that the NWC is making arrangements to commence legal proceedings.
Other entities are likely to be named as respondents in the lawsuit.
The NWC is claiming more than $200 million in losses caused by repeated breaks on its pipelines due to road projects underway in the Corporate Area.
CHEC has denied liability.
Writing in the Gleaner newspaper recently, the company said it is merely a contractor and all land acquisitions and utility relocation works are the responsibility of State agencies.
CHEC said the government did not provide it with any pipeline layout drawings.