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Nigeria Faces $500m Penalty For Alleged Default On Mambilla Power Deal

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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.”

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Monarch Hails Fubara Over Road Project

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Ogene of Asa Asi Asaga Community in Ogba/Egbema/Ndoni Local Government Area of Rivers State, Eze Andrew Enemuwa, has expressed gratitude to the Governor of the State, Sir Siminalayi Fubara for the award of the contract for construction of Igiri- Ubimini-Egbeda-Elele road project.
Eze Enemuwa said the people of the local government are proud associating with a visionary leader like Governor Fubara whose interest in the development of his people knows no bounds.
The monarch, also the Secretary of Ogba Traditional Rulers and Chiefs Council said the unprecedented crowd of ONELGA people that attended the event shows that Governor Fubara is greatly loved and cherished by the people.
The Eze Dike Di Nu Obi of Ogbaland said the presence of the traditional rulers at the event speaks volumes.
The Okene Asa Kaka urged the people of the area to support Governor Fubara to attract more development to the local government area.

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1,680 Children Abducted In Nigeria -UNICEF

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As Nigeria marks 10 years anniversary of the abduction of the Chibok girls, the United Nations Children Fund( UNICEF) has  put the number of abducted children at different schools within the last 10 years in Nigeria at 1,680.
The organisation said this at an event it organised in conjunction with the Faculty of Media and Communications Studies in the University of Port Harcourt to mark the 10 years anniversary of Chibok girls abductions.
According to UNICEF release read by Communication officer, UNICEF Nigeria Dr Mrs Ijeoma Onuoha Ogwe, 180 children were killed within the period under review due to attacks on schools, while an estimated 60 school Staff were kidnapped,14 killed and more than 70 attacks on schools.
It urged the Nigerian Government and security agencies to intensify effort towards the rescue of the 90 remaining Chibok girls.
UNICEF described the Chibok girls saga as a wakeup call to the severe risks children face in their pursuit of education
‘Today, reflecting on this tragedy and other recent abductions, it is evident that our efforts to safeguard our children’s future must be amplified
“Given this alarming statistics, we must address not only the symptoms but also the root causes of this crisis,” it said.
UNICEF also said that the threat of abduction of students is severely affecting children’s learning.
“As at 2021, over one million children were afraid to return to school and in 2020, around 11,500 schools were closed due to attacks”, it said.
It called on the government and the international community to ensure that all schools have the resources and tools to fully implement the minimum standards for safe schools, focus on the most vulnerable regions and address critical gaps in safe schools infrastructure.
UNICEF also called for preparedness for natural disasters, conflicts and comprehensive approaches to violence against children.
Others include, strengthening law enforcement and security measures to protect educational institutions and communities from attacks and abduction, prioritising education and child protection in national policies and budget allocations to create a safer, more inclusive environment for all Nigerian children and ensure the continuity of education and learning when schools are shut through multiple learning pathways such as radio and TV programme and through digital platforms the Nigerian learning Passport.
Ogwe said UNICEF is working with the Nigerian Government to ensure that every child can access safe learning environment.
“The agency has supported the inauguration of state safe school steering committees and the drafting of state costed implementation plans for safe schools in 13 States.
“It also provides school grants, safety kits training and awareness raising to accelerate the implementation of the minimum standards for safe schools.
“As we remember the Chibok girls and all children whose rights to education have been compromised, let this somber anniversary serves as a catalyst for change”, UNICEF said.
Speaking with The Tide, Dr Nwachukwu Ginikanwa said the anniversary should serve as a wakeup call to the authorities to take the issue of security seriously.

John Bibor

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Fubara Has Rekindled Rivers Hope-Former Envoy

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As the one year anniversary of the Governor Siminalayi Fubara administration in Rivers State draws closer, a former Chairman of Eleme Local Government Council, Amb.Oji Ngofa, says the Governor has rekindled the hope of Rivers people.
Amb. Ngofa said within the one year of the administration, the Governor has shown a sense of connecting the people and the government unlike the immediate past administration led by Chief Nyesom Wike.
The former Deputy National Secretary of the All Progressives Congress ( APC) explained that within one year, Rivers people are seeing a visionary leadership whose imagination is essentially focused on the desire to improve the lives of the people, with the sole aim of creating an economy where everyone can participate.
Speaking in an interview in Port Harcourt, the forrmer Ambassador said Governor Fubara has been able to engage relevant stakeholders and sectors of the State which, according to him, remains the hallmark of leadership.
He emphasised that with Governor Fubara, no doubt, Rivers State is in safe hands, saying with Governor Fubara, there is the likelihood that the State would be greater than other States.
He noted that the Governor’s vision to develop and give capacity to the people in order to participate in the economy as well as creating the enabling environment for business to flourish in the State, coupled with his peaceful nature, have all combined to endear him to the people.
Amb Ngofa said real power comes from how well one is connected with the people through good leadership, and the people on their own voluntarily surrender to you just as Governor Fubara has demonstrated within the past one year, stressing that that has informed his decision as an astute politician just like all well-meaning Rivers people to align with the Governor in order to move the State forward .
He described Governor Fubara’s milestones in infrastructure, human capital development, health and agriculture as monumental.
Amb Ngofa urged the Governor to ensure his revitalisa- tion programme on Songhai Farms extends to Buguma and Andoni fish farms and Rivers State Sustainable Development Agency (RSSDA), and expand on the initiative, as it is critical in job creation for the teeming youths of the State.
“ In his one year in office as governor, Rivers people have seen the difference in terms of governance and total departure from self. Now Rivers people are having easy access to their governor. His focus is on policies and programmes that are capable of revitalising the economy aimed at improving the wellbeing of Rivers people, not just one man. Projects are springing up in all parts of the State, not necessarily in Port Harcourt and Obio,/ Akpor. All in just one year despite the distractions”, he said.

The Port Harcourt ring road loan to small skill medium businesses are one of the biggest achievements of his administration
Aleto- Woji road abandoned by the last administration had been carried on by a government that has interest of the people at heart
Despite the destruction ,he had demonstrated sense of focus on his primary duties as a governor
We are not just seeing monumental projects ,Rivers people are seeing total commitment to create an economy that will enable Rivers people to have a hold on there lives especially with projects like revitalizing Shonghai ,plaintain farms .
It is critical focusing on human capital development .I am aware of his programme of revitalising the economy ,state owned industries through public private partnership
Rivers people hope had been rekindled and those of us who are critic to the governor Wike led administration had been vindicated
Urging Eleme people to support the administration of governor Fubara to achieve their common dream which is development.

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