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Reading: Senate to probe $5.7bn Mambila power contract
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Citizenship Daily > Blog > News > Senate to probe $5.7bn Mambila power contract
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Senate to probe $5.7bn Mambila power contract

Editor
Last updated: July 4, 2024 7:34 pm
Editor Published July 4, 2024
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•Nguroje applauds decision

By Terungwa Tyowase

The Senate has resolved to probe the $ 5.79 billion Mambilla Hydroelectric Power Project (MHEPP) located in Taraba State.

The probe will look at steps taken since 1999 till date to execute the project planned to deliver 3,050 megawatts of power to the National Grid, which has suffered hiccups seven years after the Federal Ministry of Power signed a full contract with a consortium of Chinese contractors comprising CGGC, SHC, and CGOC in 2017.

Amid Nigeria’s current electricity supply challenges, senators said on Thursday that the Mambilla plant could have gone a long way in addressing the power woes had it been executed for use by Nigerians.

Following a debate on a motion moved by Sen. Manu Haruna (Taraba-Central) and supported by 28 others, the Senate resolved to probe the circumstances surrounding the apparent failure of the plant to come on stream seven years after the signing of the full contract.

It also suggested the urgency for the administration of President Bola Tinubu to include the plant among its ‘Renewed Hope Agenda’ legacy projects to ensure that it was delivered.

Senate has mandated it’s standing committees on Appropriation, Power and Finance to investigate the entire Mambilla Hydro electrical power project (MHEPP) transaction form 1999 to date .

According to the mover of the motion , “the federal government through the federal ministry of power signed a contract with a consortium of Chinese contractors comprising CGCC and CGOC in 2017 to construct a 3050 megawhats hydroelctric power project known as the Mambilla Hydroelctric Power Project in Taraba state at tve sum of $5.792bn”.

Manu told his colleague that “The Federal Executive Council of the Buhari administration approved the said contact with an agreed JV funding stricture of 85%from the Chinese consortium (CGCC-45%,SHC-35% and CGOC-20%) and 15%from the federal Government of Nigeria as counterpart funding for the entire project with a 72 months construction period and on a site area over 146sqkm in Kurmi, and Sardauna local Government of Taraba state “.

While commenting on the motion, Senators Aminu Waziri Tambuwal, Ahmad Lawan, Chekwas Okorie and Sani Musa all called on President Bola Ahmed Tinubu to see the revival of the Mambilla hydroelctric power project as a legacy project of his administration by activating the necessary measures to see to the actualization of the project.

Senator Sani on particular, informed the Senate that a company known as Sunrise who dragged the Federal government to court has already withdrawn the matter ,paving way for the constitution of the construction without legal impediments.

Reacting to the motion , the former Deputy speaker of the House of Representatives Honourable Babangida Nguroje commended the Senate for raising in defense of the Mambilla hydroelctric power project with the view to ensuring that the project comes to fruition .

The former Deputy speaker also expressed enthusiasm at timely presentation of the motion and the fact that Sunrise company has written to withdraw its legal case that created a legal impediment to the project, stressing that no country can make meaningful development.

Honourable Nguroje mainatined that beyound the project standing as a legacy of the Bola Ahmed Tinubu’s renewed Hope Agenda , the Mambilla hydro project has capacity to trigger local content beyound Kurmi and Sardauna local government of Taraba state , that it will serve and improve the power crisis in Nigeria .

He expressed joy that the project will create over 55,000 jobs ,construction of resettlement homes for over 100,000 people ,hauling and supplying of over 2.7 million tons of steel, production and supply of over 76million tons of quarry stone and provide opportunity for cement manufacturing companies as well as auto-manufacturers in Nigeria.

“We commend the ingenuity of the 10th Senate as well as the North East Governors to bring back the conversation at this time with the favourable disposition of the current administration of President Bola Ahmad Tinubu,” Nguroje said.

He maintained that adding about 3050 megawhats into the subsisting 2000 megawhats will go a long way to improving the power sector and creating more jobs.

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