Sources close to the Federal Government are reporting that Nigeria has made significant strides in the week-long arbitration hearing held in Paris from January 18th to 23rd in the dispute between the Federal Government and the Sunrise Power & Transmission Company Limited.
The arbitration court, under the auspices of the International Chamber of Commerce has been tasked with resolving the dispute between Sunrise Power & Transmission Company Limited, led by Chief Leno Adesanya, its Chairman and the Nigerian government. And the bone of contention is whether a valid contract existed for the construction of the Mambila Power Project between the FG and Sunrise as the company is claiming.
While the Arbitration Court is yet to reach a decision, reports suggest that Nigeria had a robust showing during the proceedings, thanks to strategic moves by the Attorney-General and Minister of Justice, Lateef Fagbemi, SAN.
The sources pointed to key developments this past week at the venue of the arbitration which included the appearance of two former presidents, Chief Olusegun Obasanjo and Muhammadu Buhari, who provided testimonies “that strongly bolstered Nigeria’s case.”
According to sources, the testimonies of Obasanjo and Buhari were pivotal in discrediting Sunrise’s claims.
The source who attended the hearing said “both leaders are widely regarded for their forthrightness, and their accounts reportedly exposed what the Nigerian government described as an attempt by Sunrise to extract a fraudulent $660 million settlement from the FG.
The alleged settlement is based on a purported 2003 agreement, which the FG is arguing had no valid approval from the Federal Executive Council (FEC).
In a surprising twist, Sunrise’s case suffered several setbacks, the FG sources say.
It was disclosed that “the litigants were unable to produce key witnesses to support their claims. The reports indicate for instance that Michael Aondoakaa, a former Attorney-General during the Yar’Adua administration, made only a brief appearance in Paris but failed to testify.
“This left Leno Adesanya largely isolated, handling much of the representation himself,” according to the sources.
The source continued:
“A further blow to Sunrise’s case came from their reliance on a prior witness statement by former Attorney-General Abubakar Malami, SAN, under President Buhari’s administration. However, Malami did not testify. Instead, he aligned with the Nigerian government’s legal team, assisting President Buhari in his testimony and effectively undercutting the credibility of Sunrise’s claims.”
“The hearing also featured strong testimonies from former Nigerian ministers, including Babatunde Raji Fashola, SAN, and Engr. Suleiman Adamu. Their accounts reinforced Nigeria’s position, casting further doubt on the legitimacy of Sunrise’s claims,” the sources reported.
The case which was referred for Arbitration by Chief Adesanya in 2020 is seeking to compel the Nigerian Federal Government to resolve the termination of his contract in the development of the Mambilla Power plant in his favour.
Sunrise and its Chairman/ Chief Executive Officer, Leno Adesanya, had been involved in a running legal battle with the Federal Government of Nigeria over the unlawful termination of the contract which was signed on May 22, 2003, but re-awarded to a Chinese firm, Messrs China Gezhouba Group Corporation/China Geo-Engineering Corporation (CGGC/CGC).
Specifically, Sunrise launched a series of judicial counters to the termination of the contract on May 28, 2007, culminating in a 14-year delay, with the new awardee effectively barred from commencing the execution of the contract.
The Chinese government and China EXIM Bank have reiterated the need for the Federal Government of Nigeria to settle its legal dispute with Sunrise Power Transmission.
It is reported that the Chinese financiers of the $5.8 billion Mambilla Hydropower project expressed concern to the Nigerian government that being privy to an earlier settlement reached between the government and Sunrise Power Transmission in 2020 and witnessed by the EPC contractors, they are optimistic that the current arbitration with Sunrise Power Transmission will be resolved soon.
While commending President Bola Tinubu’s drive as a reformer, the Chinese government reaffirmed its commitment towards the Mambilla hydro power project.
“Power generation by renewable energy continues to dominate the 21st Century development narrative across the world,” a government official said.
The Mambilla Hydro would create over 50,000 skilled and unskilled jobs, economic spillovers and 3,050MGWs of electricity.
Located in Kakara, in Taraba State, when completed, the Mambilla Hydroelectric power station will be the largest power generating installation in Nigeria, and one of the largest hydroelectric power stations in Africa.
