Mr Fagbemi SAN
Nigeria has won an international arbitration case after a tribunal dismissed a $400 million claim by Sunrise Power and Transmission over the long-delayed Mambilla hydroelectric project, Attorney-General Lateef Fagbemi said on Tuesday.
The September 17 ruling removes a major legal obstacle to the 3,050-megawatt hydropower project, potentially reviving Nigeria’s biggest hydroelectric scheme after nearly two decades of delays.
Fagbemi said the International Chamber of Commerce tribunal found that settlement agreements relied on by Sunrise were not binding on Nigeria because the officials who signed them lacked the authority to commit the government without presidential approval.
He said the tribunal also found the agreements were tainted by corruption and contrary to Nigerian public policy, making them unenforceable.
Fagbemi said Sunrise was ordered to pay 75% of Nigeria’s legal fees and expenses, with 10% interest compounded annually.
Sunrise did not immediately respond to a request for comment.
The ruling could clear the way for renewed efforts to advance the project, whose financing from China’s Export-Import Bank had been contingent on resolving the dispute.
Fagbemi added that Sunrise is pursuing a separate arbitration claim against Nigeria worth more than $2.7 billion.
REUTERS
