Nigeria has won an arbitration dispute involving Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project in Taraba State.
An International Chamber of Commerce (ICC) arbitration tribunal in Paris dismissed Sunrise Power’s claims against Nigeria over the project, according to the Federal Government.
The tribunal also ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria 75 per cent of its legal costs incurred during the arbitration.
Nigeria’s legal costs were put at about $11.82 million, with the tribunal ordering the company and Adesanya to pay 75 per cent of the amount.
The dispute dates back to a 2003 agreement involving the construction of a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer arrangement.
Sunrise Power had sought about $2.35 billion in the arbitration, alleging that Nigeria breached its contractual obligations under agreements connected to the project.
The tribunal rejected the company’s claims and also dismissed its request for Nigeria to pay $400 million in relation to a settlement agreement.
President Bola Tinubu welcomed the decision and said the ruling removed a major legal obstacle affecting the Mambilla project.
The President also commended the Federal Ministry of Justice, the Nigerian legal team and other witnesses who participated in the case.
Tinubu also acknowledged the role of the Economic and Financial Crimes Commission in investigating the circumstances surrounding the original contract.
The Federal Government had previously raised concerns about the 2003 contract, saying it was awarded without the approval of the Federal Executive Council.
Former Power Minister Olu Agunloye is currently facing a seven-count charge before the Federal Capital Territory High Court over alleged fraudulent contract award and corruption linked to the project.
The charges remain allegations, and Agunloye is presumed innocent unless proven guilty by a court.
