Nigeria has won a $2.35 billion arbitration dispute against Sunrise Power over the Mambilla Hydropower Project, with a three-member International Chamber of Commerce (ICC) tribunal in Paris dismissing the company’s claim against the Federal Government.

The tribunal also ordered Sunrise Power and its promoter, Leno Adesanya, to reimburse Nigeria 75 per cent of its legal fees and expenses incurred during the arbitration.

In its final decision, the tribunal rejected Sunrise Power’s claim that Nigeria breached contractual obligations under a settlement agreement and an addendum entered into by the parties.

The panel also dismissed the company’s request for an order compelling Nigeria to pay $400 million, comprising a $200 million settlement sum and a further $200 million default sum.

The tribunal ruled that Adesanya was bound by the arbitration agreement with Nigeria under the settlement agreement and addendum, while affirming its jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.

Nigeria’s legal fees and expenses were put at $11.82 million, with Sunrise Power and Adesanya ordered to reimburse 75 per cent of the amount.

Of the sum, $2.5 million is to be paid from funds held in escrow by the ICC, while the remaining $9.32 million is to be paid by the parties, with interest at 10 per cent annually, compounded annually, from notification of the final award until full payment.

The tribunal further directed that the arbitration costs be shared, with Sunrise Power and Adesanya responsible for 75 per cent and Nigeria bearing the remaining 25 per cent.

The total arbitration cost was fixed at $1.66 million.

The panel was chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt serving as co-arbitrators.

Nigeria was represented by a legal team led by Elizabeth Oger-Gross and Tolu Obamuroh of Paul Hastings LLP.

Sunrise Power commenced arbitration proceedings against Nigeria at the ICC International Court of Arbitration on October 10, 2017, seeking $2.354 billion over an alleged breach of contract relating to a 2003 agreement for the construction of the 3,050-megawatt Mambilla hydropower plant in Taraba State.

The project, valued at about $6 billion, was to be developed under a build, operate and transfer arrangement.

In a separate arbitration, Sunrise Power sought another $400 million under the terms of a 2020 settlement agreement reached with the Nigerian government to resolve the initial dispute.