Buhari’s Mambilla project may go the way of P&ID London judgment debt if…
Strong indications have emerged suggesting that if enough care is not taken and as soon as possible, Nigeria may face another $2.3bn fine in arbitration in France over an alleged breach of contract on Mambilla Hydroelectric project.
Recall that a British commercial court awarded $9.6bn against the country in favour of Process and Industrial Development (P&ID) Company in a botched gas processing deal.
Currently, the celebrated multibillion dollar power scheme of the current administration is a subject of litigation instituted by Messrs Sunrise Power and Transmission Company Limited. Business Hilights gathered that the core issue in dispute, 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.
The plaintiff further averred 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.
The Federal Government is currently working on templates to present a strong legal team to avoid the sad experience of the P&ID which has lead to the forfeiture of government assets in like sum in London, the jurisdiction of the suit.
