Mambilla: How Agunloye’s deal sparked 23-year battle
For a country battling inadequate electricity supply and struggling to attract the massive capital required to expand generation, Nigeria’s victory in the long-running Mambilla arbitration case may represent more than the end of a costly legal dispute. With the International Chamber of Commerce tribunal in Paris dismissing Sunrise Power’s multibillion-dollar claims, attention is now shifting […]
Nigeria has won a major legal victory in the Mambilla arbitration case, which began in 2003 and has lasted for 23 years. The International Chamber of Commerce tribunal in Paris dismissed Sunrise Power's multibillion-dollar claims, rejecting the company's request for $680 million in settlement and interest. The ruling clears the way for Nigeria's largest hydro power project in Taraba State.
Former President Olusegun Obasanjo stated that he never approved the contract worth $6 billion, rejecting claims by then-Minister of Power and Steel Olu Agunloye. The controversy started when Agunloye allegedly approved the contract in 2003 without presidential consent, despite the requirement for a competitive process. Agunloye maintained that the government was not required to pay Sunrise any money under the BOT agreement, as the project was to be funded by a newly registered company with minimal assets.
The former president, however, disputed this, stating that Sunrise was not required to provide any funds and that the project was never funded by the government.
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