Nigeria wins $400m Mambilla project arbitration case
Nigeria has secured a victory in an international arbitration case after a tribunal dismissed a $400 million claim brought by Sunrise Power and Transmission over the delayed Mambilla hydroelectric project, Attorney-General Lateef Fagbemi announced on Tuesday.
The ruling, delivered on September 17, removes a major legal hurdle facing the 3,050-megawatt project and could help revive Nigeria’s largest hydroelectric scheme, which has been stalled for nearly two decades.
Fagbemi said the International Chamber of Commerce tribunal determined that settlement agreements cited by Sunrise were not binding on Nigeria because the officials who signed them lacked the authority to commit the government without presidential approval.
He added that the tribunal also found the agreements were affected by corruption and violated Nigerian public policy, rendering them unenforceable.
As part of its decision, Sunrise was ordered to pay 75% of Nigeria’s legal fees and expenses, with interest accruing at 10% annually on a compounded basis.
Sunrise had not immediately responded to a request for comment.
The decision could pave the way for renewed efforts to move the Mambilla project forward. Financing from China’s Export-Import Bank had been dependent on the resolution of the dispute.
Fagbemi also disclosed that Sunrise is pursuing a separate arbitration claim against Nigeria valued at more than $2.7 billion.
Source: Reuters
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