Nigeria is on the fast lane into another arbitration brewing in France over an alleged breach of contract on Mambilla hydroelectric project.
Over the last week, there has been uproar all over the country when a British court awarded an arbitration fine of $9.6billion against Nigeria in favour of one Process and Industrial Development Company in a failed gas processing deal project.
Similarly, the ongoing Mambilla hydroelectric project in Mambilla, Taraba state is facing another litigation instituted against the federal government by one Messrs Sunrise Power and Transmission Company Limited (SPTCL).
According to The Cable, the said company claimed that a $5.8billion contract for the construction of the Mambilla Hydroelectric Power Project on the agreement of Build, Operate and transfer still existed in their favour.
However, after they were duly awarded the said contract in year 2003, some ‘vested interest’ in government in 2017 entered into another contract with three Chinese companies namely, Sinohydro Corporation of China, China Ghezouba Group Corporation and China Geo-Engineering Group Corporation, forming a joint venture and took over its contract prior to the termination of the contract.
Consequently, the France Company accused Abba Kyari, the Chief of staff to President Buhari of unilaterally took a decision and remove the company from the contract and gave it to the current joint companies without due process.
The Company also accused the Minister of Power, Babatunde Fashola of making U-turn on his promise to support the project and joined the wagon of Abba Kyari.
As it were, the French company SPTCL has instituted a litigation challenging the decision of the Federal government and the Chinese partner at International Chamber of commerce in Paris France over terminating their contract without following due process of disengagement.
Meanwhile, Leno Adesanya, the chief executive officer of SPTCL, claimed that the company had spent some millions of dollars on financial and legal consultants to raise about $6bn which has already been spent on the said project.