The Federal Government faces a penalty of over $500 million in payment after it failed to pay $200 million due to Sunrise Power and Transmission Company Limited (SPTCL) over the Mambilla hydroelectric power project.
Sunrise has launched a lawsuit against the Nigerian government, seeking restitution to the tune of $400 million.
This follows the botched $5.8 billion Mambilla hydroelectric power project, with the Nigerian government failing to supply $200 million as compensation since 2020, according to the company.
Nigeria had entered into an agreement with Sunrise to generate 3,050 megawatts, later reviewed downwards to 1,525, reducing the overhead cost to $4 billion.
The contract was awarded to the company in 2003 by the ministry of power, although, the deal was not approved by the Federal Executive Council (FEC), however, the company laid claim to the project.
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Babatunde Fashola, during his stint as the minister of power, described the company as a middleman for the project.
In 2017, Sunrise filed a lawsuit claiming “breach of contract”, seeking a $2.354 billion compensation.
Three years after the lawsuit was filed, the Minister of Power, Sale Mamman, said that the case had been settled out of court for $200 million.
Mamman’s Special Adviser on Media and Communications, Aaron Artimas, said, in a statement, “There is no reason for an additional arbitration or court case. The government is working to find an amicable solution with Sunrise. The government is on course and remains committed to the project.”
The execution of the project was to change the face of power generation in the country, with finance to come from the China Export Import Bank – to provide 85 percent of the fund – and the Federal Government – to provide 15 percent.
In 2020, Chinese Government stated its withdrawal from the project as it was laden with lawsuits.
