Nigeria Risks $2.3bn Fine Over Mambila Project Contract Breach
Nigeria has incurred yet another $2.3 billion fine in arbitration in France over an alleged breach of Mambilla Hydro power project contract.
This is coming even as Nigeria is trying to wriggle itself out of the hefty $9.6 billion judgement fine handed down by a commercial court in London over a failed gas processing contract.
The Mambilla project is currently a subject of litigation instituted by Messrs Sunrise Power and Transmission Company Limited.
TheCable reports that the plaintiff had claimed that that a $5.8bn contract for the construction of the Mambilla Hydroelectric Power Project on the basis of Build, Operate and Transfer exists in their favour.
They claimed that after they were duly awarded the contract in 2003, some ‘vested interests’ in government in 2017 signed another contract with three Chinese companies, Sinohhydro Corporation of China, China Ghezouba Group Corporation of China and China Geo-Engineering Group Corporation, to form a joint venture for the execution of the same project.
It further accused the chief of staff to the president, Mr. Abba Kyari, of taking the unilateral decision to remove the company from the contract.
The company also accused the former minister of power, Mr. Babatunde Fashola, of reneging on his promise to support the project.
Consequently, the SPTCL dragged the government and its Chinese partners before the International Chamber of Commerce in Paris, France, over an alleged breach of contract.
The chief executive officer of SPTCL, Mr. Leno Adesanya, claimed that the company had spent millions of dollars on financial and legal consultants to raise about $6bn for the execution of the project.
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