FG has won $2.35bn Mambilla Arbitration Dispute against Sunrise Power.
NewsOnline Nigeria reports that the federal government has secured a major victory in its long-running arbitration dispute with Sunrise Power over the proposed Mambilla Hydropower Project, after a three-member tribunal of the International Chamber of Commerce (ICC) in Paris dismissed the company’s $2.35 billion claim against the Federal Government.
In its final award issued on Thursday, the tribunal rejected Sunrise Power’s claim that Nigeria breached contractual obligations under a settlement agreement and an addendum entered into by both parties.
The tribunal also dismissed Sunrise Power’s request for an order compelling Nigeria to pay $400 million, comprising a $200 million settlement sum and a further $200 million default payment.
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In addition, the tribunal ruled that Leno Adesanya, promoter of Sunrise Power, is bound by the arbitration agreement with Nigeria under the settlement agreement and addendum.
The panel further held that it has jurisdiction over Nigeria’s counterclaim against Adesanya and his company.
As part of the award, Sunrise Power and Adesanya were ordered to reimburse Nigeria 75 percent of its legal fees and expenses incurred during the arbitration.
The tribunal assessed Nigeria’s legal fees and expenses at $11,819,506.51, meaning Sunrise Power and Adesanya are required to pay 75 percent of the amount.
Of the sum, $2.5 million will be paid directly from funds held in escrow by the ICC, which will be released after notification of the final award.
The respondents were ordered to pay the remaining $9,319,506.51, together with interest at an annual rate of 10 percent, compounded annually, from the date of notification of the final award until the outstanding amount is fully paid.
The tribunal also ordered that the arbitration costs be shared, with Sunrise Power and Adesanya responsible for 75 percent, while Nigeria will bear the remaining 25 percent.
The total arbitration cost was fixed at $1,656,500.
The tribunal was chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt serving as co-arbitrators.
Nigeria was represented by a legal team led by Elizabeth Oger-Gross and Tolu Obamuroh, now of Paul Hastings LLP.
The dispute dates back to 2003, when Sunrise Power entered into an agreement with the Nigerian government for the development of the 3,050-megawatt Mambilla Hydropower Project in Taraba State.
The proposed project, valued at approximately $6 billion, was to be developed under a build, operate and transfer (BOT) arrangement.
Sunrise Power commenced arbitration proceedings against Nigeria before the ICC International Court of Arbitration on October 10, 2017, seeking approximately $2.354 billion over what it described as a breach of contract.
A second arbitration subsequently arose from a 2020 settlement agreement reached between Sunrise Power and the Nigerian government in an attempt to resolve the initial dispute.
Under the second claim, Sunrise Power sought $400 million, comprising the $200 million settlement sum and an additional $200 million default sum.
The latest ICC ruling has now dismissed the claims and imposed substantial cost liabilities on Sunrise Power and Adesanya, marking a significant development in the long-running legal dispute surrounding the Mambilla Hydropower Project.
