Nigeria defeats hydropower arbitration

The ICC International Court of Arbitration has decided that Nigeria does not have to pay a USD 680 million settlement to Sunrise Power and Transmission over the development of a hydropower project in Taraba state.

Mayer Brown partner Kwadwo Sarkodie is quoted in this article covering the ICC decision. “This is an important case, as arguments concerning issues of project governance, procurement compliance and the extent of governmental authority are frequently raised in arbitrations arising out of large African infrastructure projects. In this instance, the tribunal showed a proactive willingness to examine whether the legal prerequisites for binding the Nigerian state had been satisfied – ahead of consideration of the merits of the underlying project claims.”