The International Chamber of Commerce (ICC) arbitration tribunal in Paris has dismissed a multi-billion-dollar claim by Sunrise Power and Transmission Company Limited regarding the long-stalled Mambilla Hydroelectric Power project in Nigeria. The tribunal's decision is a significant victory for the Nigerian government, which could have been liable for $400 million in damages. The claim was based on a disputed agreement between Sunrise Power and the Nigerian government to build a 3,050-megawatt power plant.
The Mambilla Hydroelectric Power project has been mired in controversy for years, with allegations of corruption and irregularities surrounding the agreement between Sunrise Power and the Nigerian government. The project was initially awarded to Sunrise Power by then-Minister of Power and Steel, Olu Agunloye, in 2003. However, the agreement was disputed, and Sunrise Power initiated an arbitration suit at the International Court of Arbitration, seeking $2.35 billion for alleged "breach of contract".
The ICC tribunal's investigation found that Sunrise Power promoter Leno Adesanya had distributed millions of dollars to influential political figures to consolidate control over the project. Among the payments was a $500,000 payment in January 2003 to the then-wife of former Vice President Atiku Abubakar. The tribunal's decision is a significant blow to Sunrise Power and its promoter, who had sought to claim $400 million in damages.
The Mambilla Plateau, where the power plant was to be built, is renowned for its hydroelectric potential and natural resources. However, the project has been stalled for years due to disputes and allegations of corruption. The plateau's lush green vegetation, sprawling elevation, and scenic waterfalls have made it a popular tourist destination. Despite its potential, the region has been plagued by corruption and exploitation.
The Sunrise Power case bears similarities to another high-profile case involving Process and Industrial Developments Limited (P&ID), a British Virgin Islands-registered shell company. P&ID had claimed $11 billion in damages from the Nigerian government over a disputed gas supply agreement. However, the English Commercial Court set aside the award, ruling that it was obtained through systemic fraud and bribery.
The Nigerian government has been criticized for its handling of the Mambilla project and other agreements that have resulted in significant losses for the country. The government has been accused of entering into agreements that are detrimental to the country's interests, often with loopholes that allow foreign companies to exploit Nigeria's resources.
The ICC tribunal's decision is a welcome relief for the Nigerian government, which could have been liable for significant damages. The decision also highlights the need for greater transparency and accountability in the country's dealings with foreign companies. The whereabouts of Leno Adesanya, the promoter of Sunrise Power, are currently unknown. Atiku Abubakar, the former Vice President, has announced his intention to run for president in 2027.
Key points
- The International Chamber of Commerce arbitration tribunal dismissed a $400 million claim by Sunrise Power and Transmission Company Limited regarding the Mambilla Hydroelectric Power project.
- The tribunal found that Sunrise Power promoter Leno Adesanya had distributed millions of dollars to influential political figures to consolidate control over the project.
- The decision is a significant victory for the Nigerian government, which could have been liable for significant damages.
