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Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty - Politics - Nairaland

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Amaechi On Loan: China Can Seize Assets If Nigeria Defaults / FG To Pay Sunrise Power $200m ‘compensation’ To End Mambilla Dispute / Henceforth, Loan Defaults Will Be Settled With Deposits From Other Banks (2) (3) (4)

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Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by sulaak(m): 9:00pm On Jun 15
Do they ever learn

Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty

For multiple defaults on a $200 million settlement agreement it willingly entered, Nigeria now faces about $500 million in penalty over the botched $5.8 billion Mambilla hydroelectric power project.

The original awardee of the contract, Sunrise Power and Transmission Company Limited (SPTCL), had accepted a settlement offer of $200 million from the Nigerian government in the course of arbitration at the International Court of Arbitration in Paris, France.

The settlement offer was to compensate for the unlawful termination of the contract and the re-award of same to a Chinese firm.

Sunrise was also expected to let go of all claims to the project which has been grounded for 14 years.

The original contract was to generate 3,050 megawatts, but later reviewed, to 1,525  megawatts and the cost cut down to $4 billion.

Judicial interventions, sought home and abroad, have made it impossible for Nigeria to make any gains from the project and the vacillation of the administration of President Muhammadu Buhari on the compensation is further hurting the country.

In the Terms of Settlement, Nigeria agreed to a sustained halt on the project until the liability to Sunris, is discharged.

The original contract signed on May 22, 2003, became entangled in judicial web following the decision of the Nigerian government to revoke the contract on May 28, 2007 and re-award it to a Chinese company, Messrs China Gezhouba Group Corporation/China Geo-Engineering Corporation (CGGC/CGC).

SPTCL subsequently launched a judicial counter to the administrative action in suit number FHC/ABJ/CS/384/2007 which brought the project to a complete halt.

The suing firm asked for $960 million in damages for breach of contract.

In a series of documents sighted by Tribune Online, the Buhari administration which showed initial resolve to follow through with the amicable settlement initiated by its predecessors-in-office has now spurned the out-of-court settlement in multiple times, with Sunrise agreeing to let go of the penalty for earlier defaults.

The government even committed itself to $200 million penalty in an addendum to the original Terms of Settlement to assure of prompt payment of the $200 million compensation.

With Nigeria missing out on all payment deadlines, including the first payment of $100 million which should have been over a year ago, the arbitration in Paris in which Mr. Femi Falana is representing Sunrise, may eventually decide the fate of the country.

The default penalties waived by Sunrise, are also expected to come back into play, since the waiver was subject to federal government, not defaulting on the content of Addendum to the Terms of Settlement.

The reinstatement of the penalties and the $400 million already accruable on the latest default would push Nigeria’s indebtedness to Sunrise, to about $600 million.

The 10% per annum, interest rate, agreed to, by parties in the Settlement Agreement, would see a further spike to close to $700 million payable to Sunrise.

If arbitration resumes without the parties staying true to the Settlement Agreement, Sunrise is likely to walk away with close to $700 million, due to negligence on the part of decision makers in Nigeria.

If Sunrise returns to the Nigerian legal system, the earlier $960 million damages will come back into play.

While there is yet an official explanation for the continuous default, available documents showed that the trio of[b] Malami, Mamman and the Chief of Staff to the President, Ibrahim Gambari, have been communicating on the contract crisis.[/b]

President Buhari, according to a letter from Malami, is also aware of the developing saga. Where ever you find Malami you find incompetence

On 17th August, 2020, Malami wrote to the President through Gambari, a memo titled, RE-UPDATE ON THE IMPLEMENTATION OF THE MAMBILA HYDROELECTRIC POWER PROJECT AND THE WAY FORWARD.

“This is following an earlier brief I had sent to your excellency on this subject, via my letter dated 10th June, 2020 which brief, was expected to provide comprehensive update for the guidance of your excellency on this matter. A copy of the said letter is hereby attached as annexure AL.”

Obviously on the strength of from Malami’s letter, Mamman, in a memo dated 19th August, 2020 and addressed to Professor Gambari, said, “I refer to your letter dated August 18, 2020, with Reference No, SH/COS/03/A/2835, on the above subject and wish to comment on issues raised by the Hon. Attorney General and Minister of Justice, in the accompanying report as follows;

The Ministry of Power is in total support of the position provided by the AGF who has been the lead in finding an amicable out-of-court settlement to the dispute.

Out of court settlement to share the loot with the French company.

The ultimate aim of the Ministry is to see that Mambilla project implementation can proceed unencumbered, therefore whichever settlement option that can lead to peaceful resolution for the project, to commence will be acceptable by the ministry.”
https://tribuneonlineng.com/nigeria-defaults-on-mambillas-200m-settlement-agreement-incurs-heavy-penalty/
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by DeBe32: 9:06pm On Jun 15
Y'all soon become Chinese angry
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by austinvsb: 9:41pm On Jun 15
DeBe32:
Y'all soon become Chinese angry

While they may not be perfect (No country is), China has been Africa's best economic partner and friend in over 500 years.

And no you are not becoming Chinese anytime soon. Why? Because unlike your colonial masters that imposed both religion and a way of life on africans while looting the continent dry, china isn't trying to force their lifestyles on anyone.

Read and inform yourself rather than indulge in petty soundbites that are rooted in ignorance

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Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by DeBe32: 9:55pm On Jun 15
austinvsb:


While they may not be perfect (No country is), China has been Africa's best economic partner and friend in over 500 years.

And no you are not becoming Chinese anytime soon. Why? Because unlike your colonial masters that imposed both religion and a way of life on africans while looting the continent dry, china isn't trying to force their lifestyles on anyone.

Read and inform yourself rather than indulge in petty soundbites that are rooted in ignorance




You tried to hard. This is why ignorant folks like you fall into trouble. No colonialism began forcefully. Go and do your digging. When the whites touched the shores of Africa, they didn't begin shooting. They offered incentives, brought mirrors, offered gifts, what became the end?

Your forefathers ended up at the mill in the aftermath of the trickery

I won't stop here. Go and do your research, Eastern Africa that use their national infrastructures as credit guarantee to seek loans from China, one by one are losing ownership to China.

I know quality education maybe costly, but some Internet research won't cost you more than some data. You schmuck. Woe betide your fada for having the nerve. You stupid ignorant entity.


While your woeful and abysmal attempt at sounding intelligent had little sparks here and there, your relationship with China is much of a dependent one,inability to stand alone and be productive which is always the launching pad into " willfull slavery " I will educate you for free. Nigerians buying Chinese goods isn't about trade partnership entirely but an economic dependency upon China which is why the average Nigerian businessman would die to go to China to import.

China produces in order to produce, not produce because of Nigeria. Nigeria on the other hand because of its parasitic dependency seeks China by all means which can be weaponised to become a slavery tool


I'm not done, you halfwit



If China were your partners, how many litres of crude oil does China buys from you, my dear partner.? Do do your digging. China and Russia entered Bilateral trade deals of over 100 Billion dollars within the last 3 years.


Please let me know if besides offering exhoorbitant loans that requires their company to handle the project development to the detriment of your own nations intellect, of what benefit are you to China, symbiotically, to call yourself a partner. Ode



Quote me anywhere you see China buy 25 litres of fuel from your backyard. Oponu

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Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by budaatum: 10:00pm On Jun 15
austinvsb:

While they may not be perfect (No country is), China has been Africa's best economic partner and friend in over 500 years.

And no you are not becoming Chinese anytime soon. Why? Because unlike your colonial masters that imposed both religion and a way of life on africans while looting the continent dry, china isn't trying to force their lifestyles on anyone.

Read and inform yourself rather than indulge in petty soundbites that are rooted in ignorance.

And on top, why should Nigeria be paying for these fraudulent contracts that never delivered anything? Abi na so we get money to be paying scammers?

Let them whistle for the money! If they would not do business with us, China will, and we all see the train line they built, amongst other things!
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by djevino(m): 10:02pm On Jun 15
DeBe32:




You tried to hard. This is why ignorant folks like you fall into trouble. No colonialism began forcefully. Go and do your digging. When the whites touched the shores of Africa, they didn't begin shooting. They offered incentives, brought mirrors, offered gifts, what became the end?

Your forefathers ended up at the mill in the aftermath of the trickery

I won't stop here. Go and do your research, Eastern Africa that use their national infrastructures as credit guarantee to seek loans from China, one by one are losing ownership to China.

I know quality education maybe costly, but some Internet research won't cost you more than some data. You schmuck. Woe betide your fada for having the nerve. You stupid ignorant entity.


While your woeful and abysmal attempt at sounding intelligent had little sparks here and there, your relationship with China is much of a dependent one,inability to stand alone and be productive which is always the launching pad into " willfull slavery " I will educate you for free. Nigerians buying Chinese goods isn't about trade partnership entirely but an economic dependency upon China which is why the average Nigerian businessman would die to go to China to import.

China produces in order to produce, not produce because of Nigeria. Nigeria on the other hand because of its parasitic dependency seeks China by all means which can be weaponised to become a slavery tool


I'm not done, you halfwit


See how u finished the clown cheesy cheesy
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by DeBe32: 10:03pm On Jun 15
djevino:



See how u finished the clown cheesy cheesy


Boss make una nor mind me jare.
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by austinvsb: 11:44pm On Jun 15
DeBe32:




You tried to hard. This is why ignorant folks like you fall into trouble. No colonialism began forcefully. Go and do your digging. When the whites touched the shores of Africa, they didn't begin shooting. They offered incentives, brought mirrors, offered gifts, what became the end?

Your forefathers ended up at the mill in the aftermath of the trickery

I won't stop here. Go and do your research, Eastern Africa that use their national infrastructures as credit guarantee to seek loans from China, one by one are losing ownership to China.

I know quality education maybe costly, but some Internet research won't cost you more than some data. You schmuck. Woe betide your fada for having the nerve. You stupid ignorant entity.


While your woeful and abysmal attempt at sounding intelligent had little sparks here and there, your relationship with China is much of a dependent one,inability to stand alone and be productive which is always the launching pad into " willfull slavery " I will educate you for free. Nigerians buying Chinese goods isn't about trade partnership entirely but an economic dependency upon China which is why the average Nigerian businessman would die to go to China to import.

China produces in order to produce, not produce because of Nigeria. Nigeria on the other hand because of its parasitic dependency seeks China by all means which can be weaponised to become a slavery tool


I'm not done, you halfwit



If China were your partners, how many litres of crude oil does China buys from you, my dear partner.? Do do your digging. China and Russia entered Bilateral trade deals of over 100 Billion dollars within the last 3 years.


Please let me know if besides offering exhoorbitant loans that requires their company to handle the project development to the detriment of your own nations intellect, of what benefit are you to China, symbiotically, to call yourself a partner. Ode



Quote me anywhere you see China buy 25 litres of fuel from your backyard. Oponu

I can't even begin to phantom how anyone can put together such nonsense with so much confidence! Goddamn! Indulging in back and forth with someone as uninformed as yourself is a complete waste of mental strength and I refuse to do that. You have the the luxury of endless information at your fingertips, you can either use it or not. YOUR CHOICE

If minds such as yours represent the leaders of tomorrow, Nigeria is doomed! Thankfully we have more brilliant and saner minds both in and outside the country, so I am hopeful

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Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by FarahAideed: 11:58pm On Jun 15
Buhari is just too dishonest
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by budaatum: 12:18am On Jun 16
DeBe32:

Your forefathers ended up at the mill in the aftermath of the trickery
You miss one very important factor. You see, you know the history of my forefathers. How ignorant they were, the mistakes they made, and how they sold their children for trinkets, so I have faith that the same mistakes will never be made in this your time!

I mean, see as some people are currently trying to scam us for hundreds of millions of dollar. And not even for trinkets! The modafuqers didn't lay one single brick! And I know people might think buhari is the brains behind not paying them, but I believe its people like you, young and wise and bravely advising, no! Forcing bubu to tell them where to go!

So let some modafuqas try colonizing us. I am prepared to place my trust and faith in your very wise self, Sir. You just live long for me now please because I can not possibly do this without your very brave self leading the way with me following very bravely behind you telling any modafuqa that slavery ended and we are not for fuqing sale!

You will pardon my French please. It is because I am growing.

Oh. One more thing, DeBe32. Find it in you to forgive my ignorant forefathers please , for they obviously lacked the priviledge to know what it was that they were doing, unlike very wise fortunate you of this generation who has the wonderful benefit of hindsight which you will save my sorry ass.
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by Penguin2: 12:23am On Jun 16
I don’t understand the kind issue wey Mambilla and Ajeokuta Steel plant get.

Both companies need billions of dollars of settlement before work resume.

Who are these people holding these two important projects to ransom like this?
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by budaatum: 2:20am On Jun 16
Penguin2:
I don’t understand the kind issue wey Mambilla and Ajeokuta Steel plant get.

Both companies need billions of dollars of settlement before work resume.

Who are these people holding these two important projects to ransom like this?

Imagine I tell you I would revive your great grandfather's Peugeot 204 right? First thing on your mind would be like "my great grandfather never had a Peugeot 204!" And the second thing would probably be "Peugeot 204 ki? Peugeot made 204 or buda you been smoking bad weed?" But let's say I convince you anyway.

Do you think whatever bill I initially give you would be growing daily like a baby on steroids or not?

Do you think the bill I give you if I ever finish would be less than the price of a current Peugeot or more?

And would your great grandfather's Peugeot 204 that I restored run as well as a brand new car that would likely be cheaper or might you need to park it in a museum?

Some things just ain't worth spending any more money on unless you got enough to burn is my point, and my own great grandfather rode a footwagon, as did my grandfather too, while my father drove a Peugeot 404 but Nigerian Army confiscated it because it was army green, so he got a Volkswagen Beetle.

Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by Penguin2: 6:35am On Jun 16
budaatum:


Imagine I tell you I would revive your great grandfather's Peugeot 204 right? First thing on your mind would be like "my great grandfather never had a Peugeot 204!" And the second thing would probably be "Peugeot 204 ki? Peugeot made 204 or buda you been smoking bad weed?" But let's say I convince you anyway.

Do you think whatever bill I initially give you would be growing daily like a baby on steroids or not?

Do you think the bill I give you if I ever finish would be less than the price of a current Peugeot or more?

And would your great grandfather's Peugeot 204 that I restored run as well as a brand new car that would likely be cheaper or might you need to park it in a museum?

Some things just ain't worth spending any more money on unless you got enough to burn is my point, and my own great grandfather rode a footwagon, as did my grandfather too, while my father drove a Peugeot 404 but Nigerian Army confiscated it because it was army green, so he got a Volkswagen Beetle.

Wait! Nigerian army confiscated your grandpa’s car because it was army color? So this brutality didn’t start today?

Meanwhile on Mambilla and Ajeokuta, I beg to disagree with your comparison of both companies to an old Peugeot 204 that is not worth spending on.

Do you know that Mambilla Dam is touted to have the capacity to provide over 3k megawatts of electricity when completed?

Do you know that Ajeokuta Steel plant is said to have the answer to steel issues in this country?

You don’t compare these two productive coys to an old rickety car.

For me, this is where Buhari needs to demonstrate his brutality. Cut the hands of all those working against the projects by crook or hook. It’s annoying.
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by AntiBeEmCe(m): 6:49am On Jun 16
DeBe32:




You tried to hard. This is why ignorant folks like you fall into trouble. No colonialism began forcefully. Go and do your digging. When the whites touched the shores of Africa, they didn't begin shooting. They offered incentives, brought mirrors, offered gifts, what became the end?

Your forefathers ended up at the mill in the aftermath of the trickery

I won't stop here. Go and do your research, Eastern Africa that use their national infrastructures as credit guarantee to seek loans from China, one by one are losing ownership to China.

I know quality education maybe costly, but some Internet research won't cost you more than some data. You schmuck. Woe betide your fada for having the nerve. You stupid ignorant entity.


While your woeful and abysmal attempt at sounding intelligent had little sparks here and there, your relationship with China is much of a dependent one,inability to stand alone and be productive which is always the launching pad into " willfull slavery " I will educate you for free. Nigerians buying Chinese goods isn't about trade partnership entirely but an economic dependency upon China which is why the average Nigerian businessman would die to go to China to import.

China produces in order to produce, not produce because of Nigeria. Nigeria on the other hand because of its parasitic dependency seeks China by all means which can be weaponised to become a slavery tool


I'm not done, you halfwit


I was here for the vawulence.. cheesy nd mehn you schooled d mofo. All ds UARians ...una no dey smile o
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by DeBe32: 7:50am On Jun 16
AntiBeEmCe:


I was here for the vawulence.. cheesy nd mehn you schooled d mofo. All ds UARians ...una no dey smile o


wink
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by budaatum: 12:11pm On Jun 16
Penguin2:

Wait! Nigerian army confiscated your grandpa’s car because it was army color? So this brutality didn’t start today?
1973, just so you know how far back

Penguin2:
Meanwhile on Mambilla and Ajeokuta, I beg to disagree with your comparison of both companies to an old Peugeot 204 that is not worth spending on.

Do you know that Mambilla Dam is touted to have the capacity to provide over 3k megawatts of electricity when completed?

Do you know that Ajeokuta Steel plant is said to have the answer to steel issues in this country?

You don’t compare these two productive coys to an old rickety car.

For me, this is where Buhari needs to demonstrate his brutality. Cut the hands of all those working against the projects by crook or hook. It’s annoying.
Do you know that Ajaokuta was never even completed and has never produced any steel to date, and even if it had been completed we'd be talking of decommissioning it now because it would be out of date? I would not talk about it in the same breathe as the Mambilla Hydroelectric Power Station, to be honest, which is a work in progress.

Ajaokuta Steel Company Limited (ASCL) popularly known as Ajaokuta Steel Mill is a steel mill in Nigeria, located in Ajaokuta, Kogi State, Nigeria. Built on a 24,000 hectares (59,000 acres) site starting in 1979, it is the largest steel mill in Nigeria, and the coke oven and byproducts plant are larger than all the refineries in Nigeria combined. However, the project was mismanaged and remains incomplete 40 years later. Three-quarters of the complex have been abandoned, and only the light mills have been put into operation for small-scale fabrication and the production of iron rods.
https://en.wikipedia.org/wiki/Ajaokuta_Steel_Mill?wprov=sfla1


The Mambilla Hydroelectric Power Station, is a 3,050 MW hydroelectric power project under development in Nigeria. When completed, it will be the largest power-generating installation in the country, and one of the largest hydroelectric power stations in Africa.
https://en.wikipedia.org/wiki/Mambilla_Hydroelectric_Power_Station?wprov=sfla1


One is worse than a rotten and abandoned Peugeot 204 and can not be restored because it was never fully built to begin with.
Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by Penguin2: 4:21pm On Jun 16
budaatum:

1973, just so you know how far back


Do you know that Ajaokuta was never even completed and has never produced any steel to date, and even if it had been completed we'd be talking of decommissioning it now because it would be out of date? I would not talk about it in the same breathe as the Mambilla Hydroelectric Power Station, to be honest, which is a work in progress.

Ajaokuta Steel Company Limited (ASCL) popularly known as Ajaokuta Steel Mill is a steel mill in Nigeria, located in Ajaokuta, Kogi State, Nigeria. Built on a 24,000 hectares (59,000 acres) site starting in 1979, it is the largest steel mill in Nigeria, and the coke oven and byproducts plant are larger than all the refineries in Nigeria combined. However, the project was mismanaged and remains incomplete 40 years later. Three-quarters of the complex have been abandoned, and only the light mills have been put into operation for small-scale fabrication and the production of iron rods.
https://en.wikipedia.org/wiki/Ajaokuta_Steel_Mill?wprov=sfla1


The Mambilla Hydroelectric Power Station, is a 3,050 MW hydroelectric power project under development in Nigeria. When completed, it will be the largest power-generating installation in the country, and one of the largest hydroelectric power stations in Africa.
https://en.wikipedia.org/wiki/Mambilla_Hydroelectric_Power_Station?wprov=sfla1


One is worse than a rotten and abandoned Peugeot 204 and can not be restored because it was never fully built to begin with.

If Ajeokuta had become totally worthless, successive governments wouldn’t be in negotiations with the Russian company that built it to try to revive it.

I agree that most of the installations there must have gone obselete but experts believe the company holds great potentials to be answer to most of deficiencies in raw materials in our Real Estate sector.

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Re: Nigeria Defaults On Mambilla’s $200m Settlement Agreement, Incurs Heavy Penalty by budaatum: 6:22pm On Jun 16
Penguin2:


If Ajeokuta had become totally worthless, successive governments wouldn’t be in negotiations with the Russian company that built it to try to revive it.

Really? They wouldn't? Nigerian Government?

Janta-Jamodo, is a section of road in my home of town. Part of it goes past the Central Mosque, the palace, the Ibosa, and the library, and what a very fine road it is indeed, but the section both sides of that are full of potholes and pits, despite the fact that every year the council awards a huge contract for the road's rehabilitation.

Can you see why I might see Ajaokuta as I see Janta-Jamodo, as a cash siphoning dead Peugeot 204?

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