The Federal Government has agreed to pay $200 million to Sunrise Power and Transmission Company Limited (SPTCL) in a bid to resolve the dispute over the Mambila power project in Taraba State.
The settlement deal signed on January 21, 2020, was sealed by Minster of Power, Sale Mamman, and Attorney-General of the Federation, Abubakar Malami.
The agreement reads in part: “On 10th October 2017, Sunrise Power and Transmission Company Limited submitted a Notice of Dispute and ICC Arbitration request against the Federal Republic of Nigeria and to Sinohydro Corporation Limited before the ICC International Court of Arbitration in Paris over breach of obligations under the General Project Execution Agreement (GPEA) dated 23rd November 2012 as executed by the parties
“Under the above Request for Arbitration, Sunrise Power and Transmission Company Limited claimed damages amounting to not less than $900,000,000.00 as a consequence of a Respondents breach of the GPEA.
“Desirous of removing all legal impediments to the execution of the Mambila Hydro-Electric power Project, the Federal Republic of Nigeria and Sunrise Power and Transmission Company Limited have mutually agreed to settle the dispute in this arbitration amicably.
“The Federal Republic of Nigeria shall within a period of 14-days from the date of this Terms of Settlement, pay Sunrise Power and Transmission Company Limited the net (net of any deductions charges or taxes howsoever called) sum of $200million in full and final settlement of the claims in this arbitration.
“Should the Federal Republic of Nigeria fail to make such payment within the said 14-days period, the sum will immediately bear compounded interests at the yearly rate of 10 per cent and in addition, the FRN shall automatically reinstate Sunrise Power and Transmission Company Limited as the exclusive local content partner to the Mambila Hydropower project.”
The 3,050-megawatt (Mw) facility will be the second largest hydropower plant in Africa if completed, but has suffered severe delays since construction began almost 40 years ago.
