Nation
Nigeria Faces $500m Penalty For Alleged Default On Mambilla Power Deal
The Federal Government could end up paying $500million to an electricity transmission company for allegedly defaulting on a $200million settlement agreement it entered into with the firm.
The Sunrise Power and Transmission Company Limited (SPTCL) is seeking to be paid $500million after government allegedly failed to pay the $200million compensation it offered following the termination of the contract to construct Mambilla hydropower project located in Taraba State.
The settlement was meant to make Sunrise relinquish all claims to the $5.8billion project, which has been grounded for 14 years, and was originally to generate 3,050 megawatts but later reviewed, to 1,525 megawatts.
Government has since re-awarded the same contract to a Chinese firm with Sunrise claiming that the development did not follow due process.
It subsequently approached the International Court of Arbitration in Paris, France for redress, reminiscent of the legal battle between the Federal Government and the Irish firm, Process and Industrial Development (P&ID).
In documents now in the public space, the Federal Government, represented by Power Minister, Sale Mamman, and the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, had committed the government to pay the $200million penalty in addition to the original terms of settlement, while Chairman of Sunrise, Leno Adesanya, and Legal Counsel, Jeremie Chouraqui, signed for the company.
Both sides, under the settlement agreement of January 21, 2020, had mutually “resolved that the FGN shall pay Sunrise the net sum of $200million in irrevocable and immediately available funds to Sunrise’s designated bank accounts which shall be stated in the invoice to be submitted by Sunrise within the stipulated time frame.”
The agreement stipulated that the sum of $200million “shall be paid in one or two tranches within 150 calendar days (five months) from the date of execution of this addendum, as follows: first $100million within 30 calendar days of execution of the agreement. The remaining balance of $100million shall be paid within 90 calendar days (three months) of the first payment. The second tranche of the payment under item c (ii) shall have a grace period of 30 calendar days (one month).”
The parties also agreed that in the event of the Federal Government failing to meet its payment obligations contained in the terms of payment, Sunrise would be entitled to a financial default sanction in the sum of $200million, in addition to the unpaid principal sum of $200million.
“This is in addition to the interest on any unpaid sum (including of any financial default sanctions) at a compound daily interest rate of 10 per cent, per annum, until the full payment is received by Sunrise in irrevocable and immediately available funds, in its designated bank accounts.
“Such full receipt by Sunrise shall discharge the FGN from any further extraneous liability to Sunrise in respect of the settlement agreement and this addendum and Sunrise shall then have no further recourse to the Mambilla project.”
Having missed out on all payment deadlines, including the first payment of $100million, which should have been done over a year ago, the arbitration in Paris may decide the direction the matter will sway.
With the reinstatement of the penalties and the $400million already accruable, the indebtedness may have hit $600million, and would rise to $700million if the 10 per cent per annum interest rate agreed to by parties in the settlement agreement is calculated.
Further communication between Malami and the Chief of Staff to the President, Prof. Ibrahim Gambari, indicated that Malami updated the CoS on the issue to guide the government’s decision on the matter.
Also, Mamman, in a memo dated August 19, 2020, and addressed to Gambari, said, “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.
“The ultimate aim of the ministry is to see that Mambilla project implementation can proceed unencumbered, therefore, whichever settlement option that can lead to a peaceful resolution for the project to commence will be acceptable by the ministry.”
The Rivers state Government has identified six local government areas with the highest burden of maternal and Neonatal mortality in the state.
State Commissioner for Health Dr Adaeze Chidinma Oreh said this in an interview with newsmen at the Maternal and Neonatal Reduction innovation initiative ( Mamii)Rivers state activation workshop and state engagement meeting in Port Harcourt.
The event was organized by The Federal Ministry of Health in conjunction with its Rivers state counterpart in Port Harcourt.
Dr Oreh also restated the preparedness of the state government to support current efforts by the federal government towards the reduction of maternal and infant mortalities in the country.
She mentioned the affected Local Government Areas to include, Andoni,Akuku Toru and Ahoada West
The rest according to the Commissioner are, Bonny, Etche and Emohua Local Government Areas.
She said the workshop will enable the team from the federal ministry of health and social welfare to brainstorm with the view to finding solution to the problem.
The Commissioner also gave reasons why the Mamii initiative was the best as far as finding solution to maternal mortality was concerned.
“The uniqueness of the Mamii initiative driven by the federal ministry of health and social welfare was that we used evidence to elicit the reasons for this deaths, so that the solutions will be context specific and tailored to the particular environment where those deaths are occuring
“For us in Rivers state we have six Mamii LGAs , nationally we we have 172 local government areas “the Commissioner said.
Earlier in her opening remarks,Dr Oreh said the state government is prepared to work with the federal ministry of health and social welfare to check the rate of maternal mortality in the state.
She commended The Minister of Health and Social welfare Professor Ali Muhammad Pategi for driving the Mamii initiative across the country and expressed optimism that the programm will see to the end of maternal mortality in the country.
Also speaking the National Coordinator Nigeria health sector Renewal Initiative Dr Adam Ahmed said Rivers state is the last state among Mamii states in the country to host the team.
He said the team will visit the affected Local Government Areas with the view to interacting with the people on how to check the trend.
He expressed the hope that with continuous efforts, maternal mortality will be checked.
Also speaking the permanent secretary Rivers state Ministry of Health Professor Justinah Jumbo said the government is not leaving any stone unturned towards reduction in maternal deaths.
The permanent secretary said Governor Siminalaye Fubara is a health friendly Governor who is desirous in improving the quality of health of Rivers people.
John Bibor
A pan-Nigeria organisation committed to the promotion and preservation of indigenous languages, Indigenous Language and Culture Promoters (ILCP), has called for the deliberate development and compulsory teaching of indigenous languages in both primary and secondary schools across the country.
The group made the call during its maiden Congress held in Bori, Rivers State, which was convened to examine challenges hindering the official adoption and effective teaching of Ogoni languages in schools.
Speaking at the Congress, the Executive Director of the organisation, HRC Mene Magnus Edooh, Amb.P, emphasised the critical role of indigenous languages in preserving a people’s culture, values and history. He warned against the gradual extinction of native languages, noting that language loss equates to identity loss.
“Years ago, Latin was a language of global relevance, but today it is largely extinct. We do not want Ogoni languages to suffer a similar fate. As a people, we cannot afford to lose our identity through the death of our languages,” Edooh said.
He explained that the Indigenous Language and Culture Promoters was established to collaborate with language stakeholders to ensure that children and younger generations remain connected to their mother tongues. The organisation also appealed to governments at all levels, as well as relevant institutions and individuals, to take strategic actions aimed at promoting and sustaining Nigeria’s indigenous languages.
Also speaking, the newly appointed Director of Media and Information, Prince David N. Gbarato, questioned the rationale behind government reluctance to accord indigenous languages their rightful place in national development policies.
According to him, “People with well-developed languages are people with well-developed indigenous systems and affairs,” stressing that language development is fundamental to cultural and societal advancement.
The Congress further served as a platform for the ratification of key officers of the organisation and featured the participation of representatives from various indigenous language groups and other language stakeholders, all of whom echoed the call for renewed commitment towards safeguarding Nigeria’s linguistic heritage.
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