Nigeria may soon be censure with another $2.3bn fine by a France court in a fresh legal action taken against the federal government over the gap of yet another contract on Mambilla Hydroelectric project.
The litigation is coming nearly one week after a British court judged in favour of an Irish firm, Process & Industrial Developments Limited (P&ID), mandating the Nigerian government to pay a whopping $9.6bn to the company due to alleged non-execution of a 20-year gas and supply processing agreement (GSPA) they both had in 2010.
P&ID had claimed that after spending several years preparing for the project, it collapsed because the Nigerian government did not build a pipeline or secure supply of gas as stipulated in the agreement.
As the ruling continue to generate furor from across the country and P&ID braces to seize the country’s assets worth the money, another legal action has been brought against the federal government by Sunrise Power and Transmission Company Limited, again for not living to its end of an agreement entered into sometime in 2003.
The issue in dispute, according to a report by The Cable, 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.
They claimed 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 alleged 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.
As a result, the SPTCL dragged the government and its Chinese partners before the International Chamber of Commerce in Paris, France, over an alleged breach of contract.
The chief executive officer of SPTCL, Leno Adesanya, claimed that the company had spent millions of dollars on financial and legal consultants to raise about $6bn for the prosecution of the project.