•3,050MW, 55,000 jobs, homes for 100,000 people among benefits
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, the project 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.
On Thursday, 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.
The Senate recalled that the Federal Executive Council under the administration of former President Muhammad Buhari approved the $5.78bn contract with an agreed Joint Venture (JV) funding structure of 85% from the Chinese consortium (CGGC-45%, SHC-35%, and CGOC-20%) and 15° from the Federal Government of Nigeria as counterpart funding for the entire project.
It had a 72-month completion timeline.
Apart from the 3050MW expected to be generated by the plant, it was planned to reposition the Ajaokuta Steel Complex with $1.7bn, making it a priority national project.
Giving more details on the benefits of the project, Sen. Haruna stated, “The project has great benefits for local content in the area of human capital development, including the creation of over 55,000 jobs; construction of resettlement homes for over 100,000 people; hauling and supplying of over 2.7million tons of steel; production and supply of over 76 million tons of quarry stone; the opportunity for Ashaka and Benue cement plants to produce and supply cement; and for Steyr Nigeria Limited, DPAN Limited and Innoson Vehicle Manufacturing Co. Limited to manufacture trucks and participate in over 12,000 trips of haulage and transportation logistics from Lagos and Calabar ports to the host community.”
The Senate added that though the Nigerian government 2019 had tIen measures to execute its 15% counterpart responsibility to the project, including issuing Executive Order 5, actualising it remained a mirage.
“The volume of contradictory information about the project may hinder the actualization of the good objectives and the benefits it brings to the good people of Nigeria,” the Senate added.
Also commenting on the latest move by the Senate, former Deputy Speaker of the House of Representatives, Hon. Babangida Nguroje, an indigene of Mambilla, backed the call on Tinubu to see to the execution of the powder plant as a major boost to his legacy projects.
Nguroje said it was commendable that the legal matter instituted by Sunrise Company, which created an impediment to the project, had been withdrawn, adding that this would make the execution of the plant easy.
“We commended the ingenuity of the 10th Senate as well as the North-East governors for bringing back the conversation at this time with the favourable disposition of the current administration of President Bola Ahmad Tinubu,” the former DSP said.
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