The International Chamber of Commerce (ICC) has dismissed a $2.35 billion claim by Sunrise Power Transition Company, led by Leno Adesanya, against the Nigerian government over the Mambila Hydro Electric Power Project. The ICC also rejected a $400 million settlement claim and ordered Sunrise to reimburse Nigeria approximately $11.82 million in legal and other expenses. This outcome has sparked widespread celebrations across Nigeria.
According to sources, the Nigerian team, led by Minister of Justice and Attorney General of the Federation, Lateef Fagbemi, SAN, played a crucial role in defending the country against what was described as a fraudulent claim. The team included former Presidents Olusegun Obasanjo and Muhammadu Buhari, who testified against Sunrise's claims. The case centered on a disputed contract for the Mambila Hydroelectric Power Project, valued at $6 billion.
The controversy began in 2003 when the Federal Executive Council (FEC), chaired by President Obasanjo, refused to approve the contract, citing the need for a competitive process. However, Dr. Olu Agunloye, then Minister of Power and Steel, sent a letter to Sunrise indicating preliminary approval for the project. Sunrise, with no prior expertise or assets, was awarded the contract, sparking concerns about credibility and reputation.
Documents presented to the tribunal revealed that Sunrise had no turnover in 2017, 2018, or 2019 and had total net declared assets of only N1,000,000. At the time of receiving the "award," the company's financial position was N318,685 in 2004 and N270,370 in 2005. A new Minister later confirmed that the FEC had not approved the contract, and a new tender process was initiated, awarding the contract to two Chinese companies, CGGC and CGC.
Sunrise demanded payment of GBP 33 million and $1.2 billion in alleged damages, seeking to prevent the project from moving forward. The company filed a claim at the Federal High Court and sought an order preventing any development of the project except through Sunrise. As a result, the project was delayed for years, with ChinaExim withholding funds pending the resolution of the legal dispute.
In 2012, the Federal Ministry of Power entered into a 'General Project Execution Agreement' with Sunrise and Sinohydro, another Chinese contractor. However, in 2019, a meeting between Sunrise and Nigeria's Attorney-General and Minister of Justice in London made it clear that any settlement would depend on presidential approval. Sunrise offered to accept $500 million, but the Minister of Justice counter-proposed $100 million.
The Nigerian government successfully defended its case, saving $2.35 billion and preventing what was described as a fraudulent claim. The ICC's decision has been hailed as a victory for the country, with celebrations erupting nationwide. The government has reiterated its commitment to protecting national interests and preventing similar schemes in the future.
Key points
- The ICC dismissed Sunrise Power's $2.35 billion claim against Nigeria over the Mambila Hydro Electric Power Project.
- The Nigerian government, led by Minister of Justice Lateef Fagbemi, SAN, successfully defended the country against the claim.
- The ICC ordered Sunrise to reimburse Nigeria approximately $11.82 million in legal and other expenses.
