Senate urges FG to fund Mambilla power project

The Senate on Thursday asked the federal government to include funding for the Mambilla Hydroelectric Power Project in the Renewed Hope Infrastructure Development Fund of President Bola Tinubu.

The call was a sequel to a motion by Haruna Manu (Taraba Central) during the plenary.

The 3,050 MW hydroelectric power project is located in Kakara village of Taraba State, North-eastern Nigeria.

It was initiated by a Chinese company, CGGC, at a total cost of $5.9 billion.
Based on the existing agreement, the company will fund 85 per cent of the project while the Nigerian government will fund the remaining 15 per cent, which is equivalent to 868,800,000 million dollars.

When completed, it will be the largest power-generating installation in the country and one of the largest hydroelectric power stations in Africa.

Successive governments have refused to commit the 15 per cent funding.

The motion

Mr Manu, while presenting his motion, said Nigeria is losing from the benefits it ought to have been deriving from the project.

He listed the creation of 55,000 jobs, construction of resettlement homes for over 100,000 people and hauling and supplying of over 2.7 million tons of steel as some of the benefits.

Others are the production and supply of over 76 million tons of quarry stone and the opportunity for Ashaka and Benue cement to produce and supply cement.

The senator noted that governors from the North-eastern states have made efforts to ensure the take-off of the project but it was not successful.

He demanded that the Senate Committees on Finance, Appropriation, Power and Water Resources collaborate with the federal government to ensure the release of the 15 per cent of the Mambilla Hydro Power Project for commencement of the project.

Mr Manu also requested that the 3,050 MW capacity should be retained.

Contributions

The Senate Chief Whip, Ali Ndume seconded the motion.

Mr Ndume, who represents Borno South Senatorial District, said the persistent power collapse was due to a lack of coordinated generating capability.

He urged the federal government to prioritise the implementation of the Mambilla project.

“The issue of power is something that is very important. In fact, if it is the only thing that this government at the end of it will be proud of, I think it is worth it.

“You can see that we have been witnessing collapsing here and there, this is because there is no coordinated generating capability and having this in the North-east and also knowing fully that the North-east, out of all the zones in terms of infrastructural development is behind and the issue of Mambilla is of concern to all because it is linked to power and power is very important and critical at this time in the country,” he said.

Danjuma Goje (APC, Gombe Central) said if the project is actualised, it will develop the economy of the country.

Mr Goje, a former governor and minister of state for power and steel, recalled how the project commenced in 1999 during the administration of former president Olusegun Obasanjo.

“The project came up in 1999 during Obasanjo’s tenure and the Chinese were ready to invest 4 billion USD for the take-off of this project. Somehow, one reason or the other will come up to prevent the implementation of this project, but it was the issue of trying to sort out the environmental impact assessment of the project, the legal framework and so many other things that delayed the take-off of the project.

“Later on, in 2006, President Obasanjo also came up with the idea of setting up 10 NNPP projects (National Independent Power Projects) that will involve joint funding with local, state and federal government to the tune of 5.3 billion dollars. At that time, 10 Projects were selected.

“The argument given to us at that time was Obasanjo wanted a project that would be completed within a possible time in less than three years and the argument was that this project would take more than seven years to complete. Therefore, we could not take it as an emergency and it was stepped down” Mr Goje explained.

Former Senate President, Ahmed Lawan, also said he intervened on the project when he was in office but discovered that there were many legal tussles on it.

“I intervened on the Mambilla issue in the last assembly and I think the contradiction is not about funds. The issue is the legal hurdle that has been created and has not been settled as far as I know because I had so much engagement with the Attorney-General of the Federation, Barrister Malami, and in fact, I asked for all the documents in respect to Mambilla, and I was given.

“Sunrise, one company, took the federal government to court and asked for billions. Eventually, some people negotiated 200 million dollars for Sunrise to allow the project to take off. It’s like it was going to work but something happened again and we went back to square one.

“There were funds from Nigerian Sovereign Intervention Authority – 200 million dollars – for this project, but NSIA was supposed to provide the 200 million dollars.

“The Chinese noticed that there were so many legal entanglements and they decided not to show any more serious interest.”

Aminu Tambuwal ( PDP, Sokoto) urged the lawmakers to visit the project site for assessment.

“I think it is only when we visit Mambilla, we will understand and appreciate what we as a country are losing.

“The agricultural opportunities in Mambilla are beyond anybody’s imagination. So, for any government to have priority in Nigeria, I believe that the Mambilla Hydro Power Project should be that priority.”

Victor Umeh (LP Anambra) highlighted the importance of the project.

“Power is very critical in our industrial development. Nigeria is lagging behind because of a lack of power. We cannot even power our homes,” he said.

Sani Musa (APC, Niger East) also narrated how the project commenced.

“This project was initiated as far back as the forest agreement was signed in 2007 to produce 3,060 megawatts of electricity to add to the National Grid.

“We had it at the rate of 5.9 billion dollars, out of which the Chinese company that initiated it, CGGC, will bring a counterpart funding from a Chinese company of about 85 per cent and Nigeria will give a counterpart of 15 per cent.

“Agreement was signed, and everything was reached before a legal issue came up. When this administration came, they looked at the issue when they were looking at the issue of power.

“They also considered Mambilla and the Chinese company, CGGC. They even paid a courtesy call on our Senate President and wrote to the minister of finance because they had submitted the bank guarantees for the counterpart of the 15 per cent that we were to give. So, the legal tussle came up with Sunrise.

“The position I know today is that Sunrise has met with the leadership of the country and they have agreed to withdraw the aberration which he has agreed to do and I knew he had done it in writing. I have seen it.

“NSIA was given the mandate to source for funding for Mambilla but with the coming of this administration, they have been advised to transfer everything back to Greener Hope Infrastructure Fund, which will be faster.”

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Responding, the Deputy Senate President, Barau Jibrin, who presided over the plenary, commended Mr Manu for the motion.

“Power is very important for the nation. The issue of Mambilla has been around for over 25 years. Now, we can say that the project is good to go,” Mr Jibirin said.

The deputy senate president, thereafter, put the motion to vote and a majority of the senators supported it.