The International Chamber of Commerce (ICC) tribunal in Paris has ruled in favour of Nigeria in the $2.35 billion arbitration dispute involving Sunrise Power over the Mambilla hydropower project.
The tribunal dismissed Sunrise Power’s claim that Nigeria breached its obligations under a settlement agreement and addendum. It also rejected the company’s demand for $400 million, comprising a $200 million settlement sum and a $200 million default payment.
Sunrise Power and its promoter, Leno Adesanya, were ordered to reimburse Nigeria 75% of the legal fees and expenses incurred during the arbitration, amounting to $11.82 million. The arbitration costs were fixed at $1.656 million, with Sunrise and Adesanya responsible for 75% and Nigeria 25%.
The dispute dates back to a 2003 agreement for Sunrise Power to construct the 3,050MW Mambilla hydropower project in Taraba State under a $6 billion build-operate-transfer arrangement.
In 2017, Sunrise began arbitration proceedings against Nigeria, seeking about $2.354 billion over the alleged breach of the 2003 agreement. The company later pursued another $400 million claim linked to a 2020 settlement agreement.
Former President Olusegun Obasanjo had said he never authorised the 2003 contract, while former President Muhammadu Buhari said he refused to approve the proposed 2020 settlement because he believed there was no basis for Sunrise’s claim.
The latest ICC ruling therefore leaves Sunrise’s $2.35 billion claim dismissed, while Nigeria is set to recover a substantial portion of its legal costs.
