By Mary Izuaka

 

President Bola Tinubu has hailed the ruling of the International Chamber of Commerce (ICC) arbitration tribunal in Paris, which dismissed the claims filed against Nigeria by Sunrise Power and Transmission Company Limited over the Mambilla hydropower project.

The tribunal, in an award issued on Thursday, ruled in favour of Nigeria, rejecting the claims instituted by Sunrise Power.

The company had demanded $680 million as a settlement sum and interest, in respect of another arbitration in which it is claiming over $2.7 billion in compensation and interest relating to disputes associated with the development of the 3,960MW Mambilla Hydroelectric Power Project in Taraba State.

In a statement on Thursday, Mr Tinubu said the decision affirms Nigeria’s resolve not to succumb to predatory claims.

“This latest decision affirms the Nigerian State’s determination not to succumb to predatory and exploitative claims by corrupt local and international entities and their enablers and funders,” the president said.

Mr Tinubu commended the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, and the team at the Federal Ministry of Justice for their efforts in the matter.

He also commended the defence team led by Elizabeth Oger-Gross and Tolu Obamuroh, both of Paul Hastings LLP, for what he described as their professional and excellent defence of the country.

The president praised former President Olusegun Obasanjo and late former President Muhammadu Buhari, who testified in the case, which he said dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model.

“The Federal Executive Council never authorised the contract,” Mr Tinubu stated.

He thanked other witnesses, including former ministers Babatunde Raji Fashola and Suleiman Adamu, and experts who participated in defending Nigeria’s interest in the arbitration.

Mr Tinubu also commended the National Security Adviser for his support and the Economic and Financial Crimes Commission, EFCC, for its investigation into the case.

He assured that while Nigeria remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to strongly defend opportunistic claims against the country’s commonwealth.

“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydropower project for years,” the president said.

The tribunal had earlier ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria 75 per cent of its legal fees and expenses put at $11.8 million.

Background

The dispute between Sunrise Power and the federal government revolves around the contract for the construction of the Mambilla hydropower project.

On 10 October 2017, Sunrise filed an arbitration case against Nigeria at the ICC, seeking $2.354 billion in damages for alleged breach of a 2003 agreement. The original deal granted the company exclusive rights to execute the project under a Build, Operate and Transfer (BOT) arrangement.

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Sunrise argued that the government violated the agreement by engaging Sinohydro Corporation Limited, a Chinese firm, to take over the project, and joined Sinohydro in the arbitration.

To resolve the dispute, the federal government entered into a settlement agreement with Sunrise on 21 January 2020. Under the agreement, the government committed to paying the company $200 million within 14 days, with a 10 per cent penalty in case of default.

The deal also reinstated Sunrise as the local content partner for the $5.8 billion project.

The agreement was signed on behalf of the federal government by the then Attorney-General of the Federation, Abubakar Malami, and the former Minister of Power, Sale Mamman, while Mr Adesanya signed for Sunrise.
The settlement was intended to facilitate the withdrawal of the arbitration case.

However, the government failed to meet the payment obligation. The China Exim Bank, which was expected to provide 85 per cent of the joint funding for the project, had insisted on compliance with due process and terms of the November 2017 Engineering, Procurement and Construction (EPC) contract before releasing funds.

Following the failure to pay the $200 million, the company’s lawyer, Femi Falana, filed a fresh suit at the arbitration tribunal on 11 May 2021, demanding $400 million.