Mambilla power project suffers setback as counterpart fund missing in 2021 budget

The Mambilla hydropower project has suffered setback with no provision for its execution in the 2021 budget proposal.

The $5.8 billion power plant in Taraba State had been planned for over three decades.

In 2017, the federal government approved the construction of the project to a Chinese state firm.

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China’s Export-Import Bank will provide 85 percent of the funding and Nigerian government will supply the remaining 15 percent for the joint venture.

The federal government’s counterpart funding is conspicuously missing in the 2021 budget proposal, currently undergoing scrutiny in the National Assembly.

Members of the Senate committee on Power faulted the “unseriousness” of the Federal Government in handling the project when the Power Minister, Engr. Mamman Saleh appeared before the panel on Monday to defend his ministry’s 2021 budget proposal.

The Senators also expressed shock to learn that the capacity of the project has been reduced from 3,050 megawatts to just 1,500 megawatts while the cost of contract was not reduced.

Senator Shuaibu Lau (PDP, Taraba) said his assessment of the site indicated that the project may not see the light of the day because there was no commitment on the part of the Federal Government.

“As we speak, there is no access road to the Mambilla plateau. There are court cases on the land and the Chinese financier cannot move in funds and equipment when there is litigation

“From the budget, there is nothing that concerns Mambila that shows commitment of the ministry. We are just going round on one particular project for more than 20 Years. We must be sincere with ourselves and tell ourself the truth about the project,” he said.

Senator James Manager (PDP, Delta) said there was no way the Chinese will make any moves about the project without seeing any seriousness from Nigeria.

Other senators, who decried the lack of commitment on the execution of the project, are: Danjuma Goje (APC Gombe), Gabriel Suswaw (PDP Benue), Enyinnaya Abaribe (PDP Abia), Adamu Ailero (APC Kebbi) among others.

The lawmakers queried the ministry for failing to make provision for the Mambilla project in the 2021 budget.

Responding, the power Minister said it would be unfair to say the project has been abandoned.

He told the committee that $200 million already earmarked by Federal Government would be used in building road to the project site, site clearing and ground breaking to pave way for investors to take over the project.

“There was nothing on ground when I came. I tried my best to secure the land and we must make sure the project start as soon as possible,” the minister said.

He appealed for the release $200 million domiciled in Nigerian Sovereign Investment Authority (NSIA) to his ministry to commence work.

The minister said budgetary provisions could still made for the project through synergy between the legislature and the ministry.