The Abia state government secured a major court victory over the promoters of the Enyimba Economic City project and will receive N400 million refund.
The Arbitral Tribunal was constituted to determine the dispute between these three entities. The Enyimba Industrial Development Company Limited & Crown Realties Plc and the Government of Abia State. The Tribunal has delivered its Final Award, putting an end to many months of litigation.
The tribunal’s verdict was contained in a recent press release. It mandated the promoters of the Enyimba Economic City project to refund N400 million to the Abia state government. It stated that the funds are public funds belonging to the people of Abia State.
” Upon a full hearing of the parties, the Tribunal held that the Public Private Partnership Agreement (PPPA) executed in 2017 in relation to the Enyimba Economic City Project was constructively terminated by reason of the fundamental breach of the Promoters.” The statement read in parts.
” The Tribunal further ordered the Promoters to refund to the Government of Abia State the sum of ₦400 million, being the Naira equivalent of USD 1.05 million paid from public funds, having found that there was no legal or contractual basis for the payment. In the words of the Tribunal, the sum constituted “money had and received for no consideration.” It added.
” In the present matter, the Tribunal has affirmed the termination of a defective PPP structure and ordered the return of public funds to the State. The recovery of ₦400 million to the public treasury reflects a firm institutional commitment to justice, accountability, and the protection of public resources under the administration of His Excellency, Dr Alex Otti, OFR.” The Tribunal concluded.
The Enyimba Economic City Dream Goes Bust
The Enyimba Economic City was floated as a special economic zone designed to fast-track the state’s economic growth and health.
The project was to be executed under a Public-Private Partnership (PPP). The PPP involved the Abia State Government, Enyimba Industrial Development Company Limited & Crown Realties Plc.
The Arbitral Tribunal has dissolved the PPP. It ordered the promoters of the EEC to return the N400 million invested in the project by Abia state.
The development spells an end to the Enyimba Economic City project. The project was promoted by the Alex Otti administration as one of the largest economic initiatives.
