News
$5.8bn Mambilla Power Project Suffers Setback …As Chinese Sponsor Stalls Funding
The $5.8billion Mambilla hydropower project, a 3.05GW hydroelectric facility that is to be developed on the Dongo River near Baruf in Kakara Village of Taraba State has suffered a setback which will not only push forward the expected date of operation but will also cost the country a loss of $2.3 billion as a result of litigation.
The project which is being undertaken by the Federal Ministry of Power, Construction and Housing, with the help of Chinese investments if completed, will be Nigeria’s biggest power plant as it is expected to produce approximately 4.7 billion kWh of electricity a year and generate up to 50,000 local jobs during the construction phase.
But due to alleged issues of compliance with due process, funding for the project has stalled as the China Exim Bank which is to provide 85 per cent of the required funding for the project has insisted on compliance with due process and the terms of a EPC contract signed with the Chinese JV Partners on November 2017 before releasing funds.
This stall in funding will set the 3,500MW Mambilla Power project which is a signature project of the President Muhammadu Buhari administration on power back and affect the expected take-off date.
And to avert any major problems that may put the project on permanent hold, Leno Adesanya, the Chairman and Chief Executive Officer of Sunrise Power and Transmission Company, the local content partner for the project has written series of letters to the relevant authorities to ask that the project be rescued.
Adesanya had written to Vice President Yemi Oshibajo while he was acting as president and the Minister for Power, Works and Housing, Mr Babatunde Raji Fashola as well as a petition to the International Court of Arbitration in Paris over arbitrary non-compliance with the contract signed with Sunrise.
He had in a petition to the President Buhari called for justice and the intervention of the president in saving the project as his company was removed as a local content partner to the project as a result of a unilateral decision.
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