Buhari Denies Approval For Mambilla Settlement Agreement With Sunrise

Buhari Denies Approval For Mambilla Settlement Agreement With Sunrise....KINDLY READ THE FULL STORY HERE▶

Former President Muhammadu Buhari has unequivocally denied endorsing any settlement agreement with Sunrise Power and Transmission Company Limited regarding the contentious Mambilla hydroelectric power project……...CONTINUE READING

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This disclosure mirrors a similar repudiation by former President Olusegun Obasanjo, who disclaimed authorizing a “build, operate and transfer” contract with Sunrise Power in 2003.

The dispute surrounding the Mambilla project, aimed at establishing a 3,050MW plant in Taraba State, escalated when Sunrise Power initiated arbitration against Nigeria at the ICC International Court of Arbitration in Paris on October 10, 2017, seeking a $2.354 billion award for an alleged “breach of contract” related to the 2003 agreement.

In response, the Nigerian government accused the contract award of being tainted by fraud and corruption.

Efforts to resolve the matter resulted in a settlement agreement in January 2020, facilitated by then Attorney-General of the Federation, Abubakar Malami. The agreement obligated the federal government to remit $200 million to Sunrise Power within 14 days, with a 10 percent penalty clause for any default, and reinstating Sunrise as the local content partner for the project.

However, internal communications revealed that Buhari declined to authorize the $200 million payment, citing financial constraints.

In a letter to the current Attorney-General of the Federation, Lateef Fagbemi, Buhari reiterated his position that he never sanctioned any settlement with Sunrise Power. He stated, “The Mambilla project was one of the key projects that I wanted to complete under my administration, but the project was bedeviled by a myriad of issues, mostly inherited.”

Buhari clarified that while his ministers were engaging with Sunrise and stakeholders to resolve project issues, he never specifically instructed them to conclude a settlement agreement. When the proposed settlement was presented to him in April 2020, he refused approval, convinced that there was no basis for Sunrise’s claim.

Despite an apparent out-of-court settlement agreement, the arbitration proceedings were not terminated. Buhari’s communication underscores his commitment to the completion of the Mambilla project and his insistence that no authorization for a settlement with Sunrise Power was granted.

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