Nigeria has secured a favourable ruling at the International Chamber of Commerce (ICC) in Paris after a three-member tribunal dismissed Sunrise Power’s claims exceeding $2.35 billion over the long-running Mambilla hydropower project dispute.

The tribunal also rejected the company’s separate $400 million claim linked to a 2020 settlement agreement with the Nigerian government.

In its final award, the panel dismissed Sunrise Power’s allegation that Nigeria breached its obligations under the settlement agreement and its addendum. It also rejected the company’s demand for $400 million, comprising a $200 million settlement sum and $200 million in default damages.

The tribunal ruled that Leno Adesanya, promoter of Sunrise Power, was bound by the arbitration agreement with Nigeria under the settlement and addendum. It also affirmed jurisdiction over Nigeria’s counterclaim against Adesanya and his firm.

Sunrise Power and Adesanya were ordered to reimburse Nigeria for 75 per cent of its legal fees and arbitration expenses. Nigeria’s legal costs were put at $11,819,506.51, including $2.5 million to be released from funds held in escrow by the ICC.

The remaining $9,319,506.51 is to be paid to Nigeria with interest at 10 per cent annually, compounded annually, from notification of the final award until full payment.

Arbitration costs of $1,656,500 were apportioned 75 per cent to Sunrise Power and 25 per cent to Adesanya.

The tribunal was chaired by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt as co-arbitrators. Nigeria’s legal team was led by Elizabeth Oger-Gross and Tolu Obamuroh, both of Paul Hastings LLP.

Sunrise Power began the original ICC arbitration on October 10, 2017, seeking $2.354 billion over an alleged breach of a 2003 agreement for the development of the 3,050MW Mambilla hydropower project in Taraba State.

The project was conceived under a $6 billion build, operate and transfer arrangement. A subsequent 2020 settlement agreement and addendum sought to resolve the initial dispute, but Sunrise later alleged that the Nigerian government failed to honour the settlement, leading to the separate $400 million claim.