Thursday, October 29, 2020
Home Uncategorized Mambilla Hydro: Nigeria at risk of another $2.3 billion fine

Mambilla Hydro: Nigeria at risk of another $2.3 billion fine

Nigeria may face another $2.3bn fine in arbitration in France over an alleged breach of contract on Mambilla Hydroelectric project.

This is coming after a British commercial court awarded $9.6bn against the country in favour of Process and Industrial Development (P&ID) Company in a botched gas processing deal.

The Mambilla project is currently a subject of litigation instituted by Messrs Sunrise Power and Transmission Company Limited.

The issue in dispute, according to an online medium, is a claim by the plaintiffs 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, Abba Kyari, of taking the unilateral decision to remove the company from the contract and accused the then Minister of Power, Mr Babatunde Fashola, of reneging on his promise to support the project.

As a result, 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, 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.


Please enter your comment!
Please enter your name here



Most Popular

FG begins payment of N30,000 to 330,000 Nigerians

Vice President, Prof Yemi Osinbajo, has announced that beneficiaries nationwide will receive a one-time grant of N30,000 with Lagos, Kano, State and...

Insecurity: Buratai meets top commanders

The Chief Of Army Staff, Lt. Gen. Tukur Buratai, is presently holding a meeting with Principal Staff Officers and top army commanders...

English in Twos: Episode 21

By Bashir Jammaje Education is the most powerful weapon, Nelson Mandela says, which we can use to change the...

EndSars: NECO postpones examination indefinitely

The Governing Board of the National Examinations Council (NECO) has indefinitely postponed the on-going 2020 Senior School Certificate Examination.