The Minister of Power, Adebayo Adelabu, defended the absence of the Mambilla Power Project in the 2024 Budget of his Ministry during a session with the Joint Committee of the Senate and House of Representatives Committee on Power, led by Chairman Senator Enyinnaya Abaribe.
Adelabu clarified that the Mambilla Project is currently entangled in a significant legal dispute. Specifically, the Sunrise Power and Transmission Company Limited (SPTCL) brought a case against the federal government at the International Court of Arbitration administered by the International Chamber of Commerce (ICC) in Paris, France.
This was due to an alleged “breach of contract” in relation to a 2003 agreement for the construction of the 3,050MW plant in Mambilla, Taraba state, on a “build, operate and transfer” basis for $6 billion.
The federal government, in response, contested the contract’s legitimacy, claiming it was irregular and did not adhere to due process.
The contract was reportedly awarded by Dr Olu Agunloye, the then Minister of Power, a day after the federal cabinet allegedly advised him to reconsider the request for approval and explore other funding sources for the project.
However, Sunrise pursued legal action when the government announced a bidding process for the civil works in 2007. Subsequent litigation has since stalled progress on the project.
The Minister informed the Senators and House of Representatives members that he intentionally omitted the Mambilla Project from the 2024 Budget of his Ministry.
He emphasized that this decision was deliberate due to the ongoing international arbitration. Until the dispute is resolved, he asserted that no action can be taken regarding the project.
Regarding the Zungeru Hydro Power Project, the Minister highlighted that it was nearing completion.
” The hydropower plant is 99.8% ready. It is almost completed and we intend to start operation this year and commence evacuation to the national grid. Immediately concessionary fees are paid, and we will start full operation. So, we don’t have a problem with Zungeru.”
Located in Niger state, the hydroelectricity Power Plant is a 700MegaWatt power station.
“In the process of transmission to distribution, we lose power because of the distance of travel. You lose close to 40% when you move from area of transmission to distribution.”
READ ALSO FROM NIGERIAN TRIBUNE
