Nigeria has won an international arbitration case after a tribunal dismissed a $400 million claim brought by Sunrise Power and Transmission over the long-delayed Mambilla hydroelectric project, the government said on Tuesday.
Attorney-General Lateef Fagbemi said the International Chamber of Commerce tribunal issued its ruling on September 17, removing a significant legal obstacle facing the proposed 3,050-megawatt hydropower scheme.
The project, which would be Nigeria’s largest hydroelectric facility, has been delayed for nearly two decades by financing problems, contractual disputes and legal challenges.
According to Fagbemi, the tribunal found that settlement agreements cited by Sunrise were not legally binding on Nigeria because the officials who signed them did not have authority to commit the federal government without presidential approval.
The tribunal also concluded that the agreements were affected by corruption and were contrary to Nigerian public policy, making them unenforceable, Fagbemi said.
Sunrise was ordered to pay 75% of Nigeria’s legal fees and expenses, together with annual compound interest of 10%, according to the attorney-general.
Sunrise did not immediately respond to a request for comment.
The decision could revive efforts to move ahead with the Mambilla project, whose financing from the Export-Import Bank of China had been dependent on the resolution of the dispute.
Nigeria has struggled for years with inadequate electricity generation and an unreliable national grid despite having Africa’s largest population and significant energy resources.
Fagbemi said Sunrise is separately pursuing another arbitration claim against Nigeria worth more than $2.7 billion.
