The Federal Government has asked the Nigerian Sovereign Investment Authority (NSIA) to pay the $200million compensation ruling by the International Court of Arbitration in Paris in favour of Sunrise Power and Transmission Company Limited (SPTCL).
Government Officials of the Federal Ministry of Power who spoke with The Punch said the government had agreed to pay the sum and had mandated NSIA to work out measures for settling the debt.
This is following a fresh $400 million lawsuit filed by the SPTCL at the ICC in Paris against the Federal Government of Nigeria for failing to honour a settlement agreement of $200 million.
The $200 million settlement offer was to compensate Sunrise Power for a breach of contract, termination of the contract for the 1,525 megawatts Mambilla hydropower project and the diverting the project to Sinohydro Corporation Limited.
Officials of the power ministry also stated that the new contractors for the project were on ground, holding on till when the ongoing survey of the site and compensation of land owners were completed in Taraba, where the about $4billion plant would be constructed.
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The Special Assistant to the Minister of Power on Media, Aaron Artimas, stated that the settlement was delayed because the pandemic affected government finances.
He said, “The only issue now is the delay in payment, but the government has committed to the agreement. However, the government is explaining that the challenge of COVID-19 affected its finances.
“But despite that, the NSIA was given a mandate on this by the President, because the government has to find money somewhere, as this was not budgeted for. So the government will pay.”
“The international court of arbitration or commerce in Paris that did the arbitration did not say parties should come back for any fresh or new issue because the government has accepted and signed documents following that agreement.
“There is a signed agreement between the government and the firm. The document was signed by the Minister of Power and confirmed by the President. It is a standing agreement that Nigeria will pay the $200 million.”
