The Presidency has said that disagreement with a contractor is responsible for the failure of the Mambilla hydropower project to takeoff.
Presidential spokesman Garba Shehu said this in reaction to a report by the BBC Hausa service that the Mambilla project, which is one of the signature projects of the Buhari administration, has not even commenced.
Garba Shehu said “Funds for the project, estimated to be over $4bn was to be provided as loan by the China Exim Bank”.
He however said that disagreement between a contractor and the government stalled the release of the funds by the bank.
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“There is a businessman in Nigeria called Leno Adesanya [Chairman and CEO of Sunrise Power Transmission Company of Nigeria Limited, SPTCL], who is claiming that the the past [Jonathan’s] administration had given him the contract to bring those who will execute the the Mambilla power project.”
But Shehu said an investigation carried out by the Ministry of Justice showed that the contract was never presented to the relevant bodies for approval.
“On that basis, the contractor filed a case at the International Chamber of Commerce in Paris asking a tribunal to order the government to pay him a compensation of $200m before releasing it, which made China to stop the loan,” Garba Shehu told the BBC.
He said once the fund is released, the President Muhammadu Buhari government will immediately commence the Mambilla hydropower project.
“But this is only possible if the contractor shows patriotism and withdraws his case against the government,” he added.
Dateline Nigeria reports that the Mambilla hydropower project was initially planned to generate 3,050 megawatts, but it was reduced to 1,500 megawatts to make it bankable and acceptable to the lenders.
Nigeria currently generates between 5,000 and 5400 megawatts through thermal and hydro power sources. The main source of electricity generation comes from fossil fuels especially gas which accounts for 86% of the capacity in Nigeria with the remainder generated from hydropower sources.
FG gives Taraba govt N812m for land survey, demarcation
Senator Yusuf A. Yusuf (APC, Taraba) had said that paying N812m to the Taraba State government for survey and demarcation did not translate into commencement of the project.
He also said the government was wrong for releasing that amount of money to the state government.
The immediate past Minister of Power, Engr Sale Mamman had in 2020 told the BBC that there were lots of false stories around the Mambilla project.
