$2.3BN MAMBILLA PROJECT CASE…Buhari Makes Appearance At ICC On Thursday

Former Nigerian President Muhammadu Buhari is set to appear before the International Chamber of Commerce (ICC) in Paris on Thursday in an alleged breach of contract case concerning the Mambilla Power Project.

A power firm, Sunrise Power, had instituted a $2.3 billion arbitration case against the federal government claiming that Nigeria had defaulted in its contractual obligations to the company.

Speaking to LEADERSHIP under anonymity, a source familiar with the matter confirmed the development. “Yes, the former president will testify on Thursday in France on the matter,” the source said.

The case revolves around claims made by Sunrise Power concerning a 2003 agreement to construct the 3,050-megawatt Mambilla hydropower plant in Taraba State, valued at $6 billion.

The company alleges that the federal government failed to honour its contractual obligations, leading to arbitration proceedings at the ICC.

Meanwhile, the Presidency has dismissed recent social media reports suggesting President Bola Ahmed Tinubu pressured prominent Nigerians to participate in the arbitration process.

In a statement issued on Saturday, Presidential Adviser on Information and Strategy, Bayo Onanuga, described the claims as “false and misleading.”

“The arbitration process remains confidential, and those involved in Nigeria’s defence are doing so voluntarily, driven by patriotism and a sense of duty,” Onanuga said. “At no point has President Tinubu pressured anyone to testify or barred anyone from doing so.”

A power firm, Sunrise Power, initiated the arbitration proceedings on October 10, 2017, seeking $2.354 billion in damages for what it described as a breach of contract.

The company claims the federal government violated a 2003 agreement for the Mambilla Project, originally designed as a “build, operate, and transfer” scheme.

In 2017, then minister of power, works and housing Babatunde Fashola described Sunrise Power as a “middleman,” stating that the Buhari administration had engaged Sinohydro Corporation Limited, a Chinese firm, as the project’s Engineering, Procurement, and Construction (EPC) contractor.

But while an out-of-court settlement of $200 million was reportedly agreed upon in 2020, Sunrise Power later filed a new claim for $400 million at the ICC, alleging the government had defaulted on the settlement terms. The company also sought reinstatement as the local partner for the revised $5.8 billion Mambilla Project, a condition, it claimed, was removed in subsequent negotiations.

Sunrise’s legal representative, Femi Falana, filed the lawsuit at the ICC, demanding that the government pay $400 million in compensation and penalties for defaulting on the agreement. The claim includes a 10 percent penalty for delays beyond the stipulated 14-day settlement period agreed upon in January 2020.
The federal government has argued that the terms of the agreement were reviewed due to the financial strain caused by the COVID-19 pandemic, prompting fresh negotiations.

The arbitration outcome could have significant implications for Nigeria’s finances and the future of the long-delayed Mambilla power project.

Former President Olusegun Obasanjo is currently in Paris to honour the invitation to speak on the Mambila Power Project.

LEADERSHIP gathered that the former president left Nigeria for Paris on Saturday morning to enable him to appear and speak on the subject matter, which may be ongoing as we speak.

Obasanjo’s special assistant on media, Kehinde Akin Yemi, confirmed to LEADERSHIP on Monday afternoon in Abeokuta that Obasanjo had chosen to honour the invitation to set the record straight.