• Monday, January 20, 2025
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Timeline of the $6bn Mambilla Power court case

Mambilla

Mambilla Power Project

The $6 billion Mambilla Hydroelectric Power Project in Taraba State has been entangled in a protracted legal and administrative dispute, with no resolution in sight.

If completed, the project would generate approximately 4.7 billion kWh annually, making it Nigeria’s largest power project. However, over 40 years later, the project remains stalled.

Here is a timeline of the Mambilla project, from inception to current dispute:

2003: The Federal Government awarded a $6 billion Build, Operate, and Transfer (BOT) contract to Sunrise and its Chinese partners after an international bidding process.

2005: Sunrise Consortium secured $5.5 billion in financing from China Eximbank to execute the project.

2007: The government annulled the BOT contract with Sunrise and instead signed a $1.46 billion civil works agreement with China Gezhouba Group Corporation (CGGC) and China Geo-Engineering Corporation (CGC), breaching the initial agreement.

Read also: Inside details of the $6bn Mambilla Power dispute

May 2007: Sunrise initiated legal actions to challenge the contract termination, resulting in a 14-year delay that prevented the new contractors from commencing work.

November 2007: Sunrise petitioned then-President Umaru Yar’Adua. In 2009, the government terminated the $1.46 billion EPC contract.

November 23, 2012: A General Project Execution Agreement (GPEA) was signed between the Federal Government, Sunrise, and its Chinese partners to revive the project.

November 12, 2017: The government controversially awarded a $5.8 billion EPC contract to another Chinese consortium, despite warnings from the Attorney-General to honour the GPEA.

2018: Sunrise filed a $2.3 billion arbitration claim with the International Chamber of Commerce (ICC), seeking damages from the Federal Government and the Sinohydro Consortium.

2019: Following Chinese government intervention, a special envoy visited former President Muhammadu Buhari, leading to settlement talks.

2020: A settlement agreement was reached in January, contingent on approvals from China Eximbank and the Chinese Ambassador to Nigeria. The Federal Government failed to meet the agreement’s terms.

2021: Sunrise withdrew its $500 million arbitration claim in September, demanding financial commitments and recognition as the project’s exclusive local content partner. The government defaulted again, delaying payments to contractors and contributions to counterpart funds.

2022: On October 13, the ICC ruled against the Nigerian government, rejecting its objections.

2023: The Economic and Financial Crimes Commission (EFCC) accused former Minister of Power Olu Agunloye of awarding the BOT contract without proper approvals and alleged he received a N3.6 million bribe in 2019 from Sunrise and its Chairman, Leno Adesanya.

2024: Former President Muhammadu Buhari is expected to testify in international arbitration over breaches of the Mambilla project contract.

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