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 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 a report by The Cable, 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.
The company also accused the then Minister of Power, Mr Babatunde Fashola, of reneging on his promise to support the project.
Source: Punch Newspaper
