The Federal Government secured victory in a nearly nine-year international arbitration battle against Sunrise Power and Transmission Company Limited over the long-delayed 1,500MW Mambilla Hydroelectric Power Project, defeating claims that put Nigeria’s potential exposure at more than $3.38bn.
The project was originally conceived as a 3,050-megawatt hydroelectric plant in Taraba State, but the Federal Government later reduced the planned capacity by about 50 per cent to 1,525MW before subsequently rescoping it to about 1,500MW to make it financially viable and bankable for lenders.
The presidency confirmed the victory in a State House statement noting that the ruling removed a major impediment that prevented the multibillion-dollar power project from progressing.
It said that Sunrise had demanded $680m as a settlement sum and interest in the latest arbitration relating to another case in which it is claiming more than $2.7bn in compensation and interest over disputes associated with the development of the Mambilla project in Taraba State.
the three-member tribunal had dismissed Sunrise’s claim that Nigeria breached its contractual obligations and also rejected the request for an order compelling Nigeria to pay $400m, comprising a settlement sum of $200m and another $200m claimed as a default payment.
The tribunal ordered Sunrise and its promoter, Leno Adesanya to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred by the country in defending the arbitration.
Nigeria’s legal fees were put at $11.82m, of which $2.5m is expected to be covered directly from funds held in escrow by the ICC and released upon notification of the final award.
