The International Chamber of Commerce (ICC) tribunal in Paris, France, has ruled in favour of Nigeria in the $2.35 billion claim brought by Sunrise Power over the Mambilla hydropower project.
The tribunal dismissed Sunrise Power's claims against Nigeria and also ordered the company and its promoter, Leno Adesanya, to reimburse the Nigerian government for 75 per cent of the legal fees and expenses it incurred in the arbitration.
According to TheCable, the award was issued on Thursday.
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In its final decision, signed by the three-member tribunal, the panel rejected Sunrise's request for a declaration that Nigeria had breached its contractual obligations under the settlement agreement and the addendum.
The tribunal also dismissed Sunrise's claim seeking an order compelling Nigeria to pay the company $400 million. The amount comprised a $200 million settlement sum and a further $200 million default sum.
The panel further declared that Adesanya, the promoter of Sunrise, is bound by the arbitration agreement with Nigeria under the settlement agreement and the addendum.
It also ruled that it has jurisdiction over Nigeria's counterclaim against Adesanya and his firm.
As part of the final award, the tribunal ordered Sunrise and Adesanya to reimburse Nigeria for 75 per cent of the legal fees and expenses incurred by the country in the arbitration.
The legal fees and expenses were put at $11,819,506.51. Of that amount, $2.5 million is to be paid directly from funds held in escrow by the ICC and released upon notification of the final award.
Sunrise and Adesanya were ordered to pay Nigeria the remaining $9,319,506.51, together with interest at an annual rate of 10 per cent.
The interest is to be "compounded annually, from the date of the notification of this Final Award until such amount is paid in full".
The tribunal also directed that the costs of the arbitration be shared between the parties, with Sunrise and Adesanya responsible for 75 per cent and Nigeria responsible for the remaining 25 per cent.
The arbitration costs were fixed at $1,656,500.
The three-member panel was presided over by Melaine van Leeuwen, with Stavros Brekoulakis and Simon Nesbitt serving as co-arbitrators.
Nigeria was represented by a team of lawyers led by Elizabeth Oger-Gross and Tolu Obamuroh, now of Paul Hastings LLP.
