Nigeria has secured a major legal victory in the long running dispute over the Mambilla Hydroelectric Power Project after an International Chamber of Commerce arbitration tribunal in Paris rejected a $2.35 billion claim brought by Sunrise Power and Transmission Company Limited.
The tribunal also dismissed a separate $400 million claim connected to a previous settlement agreement and ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria about $11.82 million in legal fees and expenses.
President Bola Tinubu welcomed the decision, describing it as a major development that removes what he called the biggest legal obstacle that had delayed the 3,960 megawatt Mambilla hydropower project in Taraba State for years...READ THE FULL ARTICLE HERE .
The dispute dates back to an agreement concerning the development of the Mambilla project and eventually resulted in arbitration proceedings after disagreements arose between the parties. Sunrise Power had sought compensation from Nigeria over alleged contractual breaches relating to the project.
The tribunal rejected the company’s claims and also ruled that Adesanya was bound by the arbitration agreement. It further awarded Nigeria 75 percent of its legal fees and expenses, with part of the amount to be recovered from funds held in escrow and the remaining balance payable by the claimants.
Tinubu commended the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, as well as the legal team involved in defending Nigeria’s position. He also acknowledged former Presidents Olusegun Obasanjo and Muhammadu Buhari, who testified during the proceedings.
The President said the ruling demonstrated Nigeria’s determination to defend its interests in international legal disputes while continuing to honour legitimate obligations to genuine investors.
The Mambilla project has been planned as one of Nigeria’s major power infrastructure projects, with an expected generation capacity of 3,960 megawatts. Its development has faced years of legal, contractual and administrative challenges.
With the arbitration dispute now decided in Nigeria’s favour, attention is expected to shift towards the next steps for the long delayed hydropower project and whether the removal of the legal obstacle will help accelerate its development.
The latest ruling therefore marks an important development in the Mambilla project saga, although the completion of the massive power project will still depend on financing, contractual arrangements, construction and other implementation requirements.
