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Mambila Power Project: Senate Set-up Ad-hoc Committee To Investigate Transactions From 1999 TO Date

Sen. Manu Taraba Central

The Senate has set up an ad-hoc Committee to investigate the entire Mambila Hydroelectric Power Project (MМНЕРР) transaction from 1999 to date with a view to have an additional source of power which is the backbone of any industrial and technological development.


The setting-up of the ad-hoc Committee was as a result of a motion presented in the floor of the Senate by Senator Haruna Manu representing Taraba Central which was supported by all the senators considering its importance to the Nigeria’s growth.


The Senate was worried by the volume of contradictory information about the project which hindered the actualization of the good objectives and the benefits it will bring to the people of Nigeria.


It was worried that, the agreement between a Russian firm and the Republic of Niger to construct the Kandadji hydroelectric project, located about 180 kilometers northwest of the capital Niamey along the Niger River, will reduce the volume of water supply to and hamper the capacity of Kainji dam to generate electricity for Nigeria.


However, the Senate is encouraged by the proactive steps taken by His Excellency, the President of the Federal Republic of Nigeria, President Bola Ahmed Tinubu by taking action at the COP28 Climate Summit in Dubai, United Arab Emirate (UAE) in December 2023 to improve Nigeria’s electricity supply through renewable energy.


As such, the Federal Government through the Federal Ministry of Power signed a contract with a consortium of Chinese contractors comprising CGGC, SHC, and CGOC in 2017 to construct a 3050 MW hydroelectric power project known as the Mambila Hydroelectric Power Project (MHEPP) in Taraba State at the sum of $5.792bn.


It was the Federal Executive Council of the Buhari administration that approved the said contract with an agreed 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 with a 72 months construction period and on a site area over 146sqkm in Kurmi, and Sardauna Local Government of Taraba State.


It is in the spirit of Renewed Hope Agenda of President Bola Ahmed Tinubu, particularly to electricity generation for capacity expansion; the Mambila Hydroelectric Power project (MHEPP) with its capacity to generate 3050MW and reposition the Ajaokuta Steel Complex with $1.78 makes it a priority project of national importance.


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 2.7 million tons of steel, Production and supply of over 76 million tons of quarry stone, the opportunity for Ashaka and Benue cement to produce and supply cement, and for Styer 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.


Decades of efforts towards the take-off of this national economic asset have been ongoing including that from North East governors to place the project in implementation mode; the appointment of HYPERTECH Nigeria by the Chinese consortium as the local content consultant; the creation of a presidential inter-ministerial committee comprising four relevant stakeholders (The Federal Ministry of Power, The Federal Ministry of Water Resources and Sanitation, The Federal Ministry of Finance, Budget and I’lanning. and The Federal Ministry of Justice) in 2019 by the Buhari-led government to effectively coordinate the implementation of the project.


The pre-commencement activities was scheduled by the government on resettlement, access road, security, and airfield has been provided and 27 MDAs and over 500 companies have already been identified towards the actualization of the 15% local content counterpart funding.


The project is to be carried out based on Presidential Executive Order 5 which has been issued to provide the platform for the framework of the local content especially as it relates to preference, accreditation, capacity development, and contract award.


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