Nigeria has won an arbitration case against Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project in Taraba State.
An International Arbitration Tribunal under the auspices of the International Chamber of Commerce (ICC) in Paris ruled in favour of Nigeria on Thursday, rejecting claims brought by Sunrise.
The company had demanded $680 million as a settlement sum and interest in relation to another arbitration in which it is seeking more than $2.7 billion in compensation and interest over disputes surrounding the development of the Mambilla project.
The tribunal also rejected Sunrise’s claim for an order directing Nigeria to pay $400 million, comprising a $200 million settlement sum and a $200 million default sum.
It further held that Leno Adesanya, the promoter of Sunrise, is bound by the arbitration agreement with Nigeria under the settlement agreement and its addendum, and that the tribunal has jurisdiction over Nigeria’s counterclaim against him and his firm.
Sunrise and Adesanya were also ordered to reimburse Nigeria 75 per cent of its legal fees and expenses, amounting to $11.82 million. The tribunal fixed the arbitration costs at $1.6565 million, with Sunrise and Adesanya responsible for 75 per cent and Nigeria for the remaining 25 per cent.
President Bola Tinubu, in his reaction on Thursday, said the ruling affirmed Nigeria’s determination to defend its interests against what he described as “predatory and exploitative claims”.
“On behalf of the Government and People of the Federal Republic of Nigeria, I strongly commend the tremendous efforts of the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi and the entire team at the Federal Ministry of Justice for their efforts in this matter,” the president said in a statement signed by presidential spokesperson, Bayo Onanuga.
“I also commend the FRN defence team, led by Ms Elizabeth Oger-Gross and Mr Tolu Obamuroh, both of Paul Hastings LLP, for their professional and excellent defence of the country.
“I commend the patriotism and support of former President Olusegun Obasanjo, GCFR, and late President Muhammadu Buhari, GCFR, who testified in the case, which 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.”
Tinubu also thanked former ministers Babatunde Raji Fashola, SAN, and Suleiman Adamu, as well as other witnesses and experts who participated in the arbitration.
“I commend the National Security Adviser for his support and the Economic and Financial Crimes Commission for its investigation into the case.
“I want to assure you that while our country remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to defend all opportunistic claims instituted against our commonwealth strongly,” he said.
The President said the ruling had removed a major legal obstacle to the long-delayed Mambilla project.
“Today’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years,” Tinubu said.
The dispute dates back to a 2003 agreement concerning the proposed 3,050-megawatt Mambilla hydroelectric plant in Taraba State, which was to be developed under a build-operate-transfer arrangement.
Sunrise commenced arbitration proceedings against Nigeria at the ICC International Court of Arbitration in October 2017, seeking about $2.354 billion over an alleged breach of contract.
The parties later entered into a settlement agreement in 2020, under which Nigeria was to pay Sunrise $200 million.
A subsequent dispute led to another arbitration, with Sunrise seeking $400 million comprising the $200 million settlement sum and a $200 million default payment.
Thursday’s ruling rejected Sunrise’s claims arising from the settlement agreement and its addendum, bringing a major legal phase of the dispute to a close.