Revealed: How FG directed NSIA to source $200m judgment debt awarded Sunrise over Mambilla power issue

MORE facts are emerging on the controversial 3,050mw Mambilla Hydropower project with previous reports on the project indicating that contrary to the present position of government, the Federal Government had indeed agreed to pay $200 million awarded against it over the project. The reports outlined how the government of President Muhammadu Buhari in 2021 had directed the Nigerian Sovereign Investment Authority (NSIA) to source for the sum of $200 million for settlement of judgment cost awarded by the International Court of Arbitration in Paris in favour of Sunrise Power and Transmission Company Limited.

At the time, officials at the Federal Ministry of Power confirmed that the federal government had agreed to pay the sum and had mandated NSIA to work out modalities for settling the debt. The $200 million settlement offer, it was learnt, was to compensate Sunrise Power for the unlawful termination of the contract for the project and the re- award of the same to other Chinese firm.

Mr Aaron Artimas, spokes man to then Power Minis ter (Salleh Mamman) at the time, said the government through the NSIA and other channels were working on how to settle the debt, stress- ing that it was incorrect to al lege that there was no plan to honour the agreement. Artimas, however, admitted that the payment had been delayed, stressing that this was due to some challenges, which were being addressed at the time.

He said: “The only issue now is the delay in pay ment, but the government has committed to the agree ment. However, the govern ment is explaining that the challenge of COVID-19 affectec its finances.

“But despite that, the NSIA was given a mandate on this by the president, because the government has to find money somewhere, as this was not budgeted for. So the government will pay,” the spokesman said.

Based on terms the settlement, Sunrise was expected to relinquish all claims to the project once the requirements contained in the agreement with the govern- ment were settled. Officials of the power ministry also stated that the new contractors for the project were on ground, holding on till when the ongoing survey of the site and compensation of land owners were completed in Taraba, where the about 54 billion plant would be constructed.

The original contract for the Mambilla project was for the plant to generate 3,050MW of electricity, but this was reviewed downward. However, events have since taken a different turn, with new statements and conflict ing positions. The Head of Communications at NSIA, Titilayo Olubiyi, at the time also stated that the Mambilla power project was captured under the Presidential Infrastructure Development Fund (PIDF)