Nigeria has won an International Chamber of Commerce (ICC) arbitration case in Paris over a $680 million claim brought by Sunrise Power and Transmission Company Ltd, President Bola Tinubu said on Thursday.
An international arbitration tribunal rejected Sunrise’s claims against the Federal Republic of Nigeria in a case tied to disputes over the proposed Mambilla Hydroelectric Power Project in Taraba State.
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.
President Tinubu said the ruling had removed what he called the “single biggest legal hurdle” that had paralysed the Mambilla power project for years.
The 3,960-megawatt project has been the subject of disputes connected to an earlier contract involving the development of a hydroelectric plant in Taraba State.
Dispute dates back to 2003 contract
The Federal Government’s case centred partly on a 2003 contract to build a 3,050-megawatt hydroelectric plant under a build-operate-transfer model.
President Tinubu said the contract was never authorised by the Federal Executive Council.
Former President Olusegun Obasanjo and late President Muhammadu Buhari testified in the case, according to the presidential statement.
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Tinubu commended both former presidents for their “patriotism and support” in the arbitration.
He also recognised former Works and Housing Minister Babatunde Raji Fashola, SAN, and former Minister of Water Resources Suleiman Adamu among the witnesses who took part in defending Nigeria’s interest.
The President also thanked the experts who participated in the case.
Sunrise’s dispute is tied to the development of the Mambilla Hydroelectric Power Project, which is located in Taraba State and has a planned capacity of 3,960MW.
The company had pursued compensation and interest in relation to disputes surrounding the project.
The arbitration process also drew the participation of Nigeria’s legal and investigative institutions.
Tinubu commended Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, and the Federal Ministry of Justice team for their work on the case.
He also praised Nigeria’s defence team, led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP, for what he called their professional defence of the country.
Government vows to defend public assets
The President also credited the National Security Adviser with supporting the case and thanked the Economic and Financial Crimes Commission for its investigation into the matter.
Tinubu said the government would continue to work with genuine investors and honour Nigeria’s legal obligations.
At the same time, he said the country would defend claims against its commonwealth that it considers opportunistic.
The President’s statement framed the tribunal’s decision as a significant legal development for the Mambilla project, which he said had faced years of paralysis because of the legal dispute.
The ICC tribunal issued its award on Thursday in Paris, rejecting the claims brought by Sunrise.
The ruling came against the background of the company’s demand for $680 million in one arbitration and its separate claim for more than $2.7 billion in compensation and interest.
With the tribunal’s decision, the Federal Government now says the major legal obstacle affecting the Mambilla project has been cleared.
Tinubu said the government would maintain its commitment to legitimate investors and its legal obligations, alongside defending Nigeria’s public assets in arbitration proceedings.
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