FG directs NSIA to source $200m judgment debt for Chinese firm
Written by crest887fm on August 4, 2021
The Federal Government has directed the Nigerian Sovereign Investment Authority to source $200m for settlement of International Court of Arbitration in Paris award in favour of the Chinese firm, Sunrise Power and Transmission Company Limited.
Officials of the Federal Ministry of Power said the government had agreed to pay the sum and had mandated NSIA to work out measures for settling the debt.
The $200m settlement offer was to compensate Sunrise Power for the unlawful termination of the contract for the 1,525 megawatts Mambilla hydropower project and the re-award of the same to another Chinese firm.
Based on terms the settlement, Sunrise is expected relinquish all claims to the project once the requirements contained in the agreement with the Federal Government 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 $4bn plant would be constructed.
The original contract for the Mabilla project was for the plant to generate 3,050MW of electricity, but this was reviewed downwards to 1,525MW and the cost cut down by $1bn to $4bn.
The Special Assistant to the Minister of Power on Media, Aaron Artimas, explained that the Nigeria Sovereign Investment Authority had been ordered by the President, Major General Muhammadu Buhari (retd.), to take up the matter.