The International Chamber of Commerce in Paris has ruled in favour of Nigeria in the $2.35 billion claim filed by Sunrise Power over the Mambilla hydropower project.
The tribunal also ordered Sunrise Power and its promoter, Leno Adesanya, to refund $11.8 million in legal fees to Nigeria.
The final award was issued on Thursday by a three-man panel chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt as co-arbitrators.
TheCable understands that the tribunal dismissed Sunrise’s claim that Nigeria breached its obligations under a settlement agreement and an addendum.
It also rejected the company’s demand for $400 million, being a $200 million settlement sum plus a $200 million default sum.
The tribunal declared that Adesanya is bound by the arbitration agreement with Nigeria and that it has jurisdiction over Nigeria’s counterclaim against him and his firm.
It ordered Sunrise and Adesanya to reimburse Nigeria 75 percent of its legal costs, put at $11,819,506.51.
Of that amount, $2.5 million will be paid directly from funds held in escrow by the ICC upon notification of the award, while the balance of $9,319,506.51 is to be paid with 10 percent annual interest compounded yearly from the date of notification until full payment.
The arbitration cost, fixed at $1,656,500, is to be shared with Sunrise and Adesanya paying 75 percent and Nigeria 25 percent.
Nigeria was represented by lawyers led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.
Sunrise had on October 10, 2017, commenced arbitration at the ICC seeking $2.354 billion for alleged breach of contract over a 2003 agreement to build the 3,050MW Mambilla plant in Taraba State on a Build, Operate and Transfer basis valued at $6 billion.
In the second leg, the firm sought $400 million for Nigeria’s alleged failure to honour a 2020 settlement agreement meant to end the dispute.
Former President Olusegun Obasanjo had in a 2023 interview with TheCable challenged his former Minister of Power, Olu Agunloye, to explain where he got authority to award the $6 billion contract in 2003.
“When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission and I did not give him any permission,” Obasanjo said.
Former President Muhammadu Buhari also denied authorising the 2020 settlement, saying he refused to approve it in April 2020 because there was no basis for Sunrise’s claim.
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