…Advocates for 15% Counterpart Funding
…Motion Supported by Senator Manu and 28 Others
The Senate resolved on Thursday to encourage the committees on Finance and Appropriation to incorporate the $5.8 billion Mambila Hydroelectric Power Project into President Bola Ahmed Tinubu’s legacy projects. The resolution also calls for the 15% counterpart funding amounting to $868.8 million to be sourced from the Renewed Hope Infrastructural Development Funds.
Lawmakers emphasized the neglect of this significant national project by previous administrations, despite its potential to generate 3,050 megawatts of electricity and revitalize the Ajaokuta Steel Complex with a $1.7 billion investment.
The Senate insisted on maintaining the original 3,000 megawatts capacity in reviving the project.
This decision followed a motion presented by Senator Haruna Manu of the Taraba Central Senatorial District, along with 28 other Senators.
In the motion titled “The Urgent Need to Address the Challenges of Commencing the Mambila Hydroelectric Power Project,” Senator Manu stated:
“The Federal Government, through the Federal Ministry of Power, signed a contract in 2017 with a consortium of Chinese contractors, including CGGC, SHC, and CGOC, to construct a 3050 MW hydroelectric power project known as the Mambila Hydroelectric Power Project (MHEPP) in Taraba State, costing $5.792 billion.”
Manu elaborated, “The Federal Executive Council of the Buhari administration approved the 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. The construction period is set for 72 months on a site area covering over 146 sq km in Kurmi and Sardauna Local Government of Taraba State.
He emphasized the importance of the project in President Tinubu’s Renewed Hope Agenda, particularly for electricity generation and capacity expansion. The Mambila Hydroelectric Power Project (MHEPP) and the revitalization of the Ajaokuta Steel Complex with $1.7 billion are considered national priorities.
“The project offers significant benefits for local content in human capital development, including creating over 55,000 jobs, constructing resettlement homes for over 100,000 people, supplying over 2.7 million tons of steel, producing and supplying over 76 million tons of quarry stone, and opportunities for local companies such as Ashaka and Benue Cement, Styer Nigeria Limited, DPAN Limited, and Innoson Vehicle Manufacturing Co. Limited to participate in the project’s logistics and supply chain.”
He continued, “Efforts spanning decades have been made towards the realization of this national asset, including initiatives from North East governors, the appointment of HYPERTECH Nigeria as the local content consultant by the Chinese consortium, and the creation of a presidential inter-ministerial committee by the Buhari administration in 2019. This committee, comprising the Federal Ministries of Power, Water Resources and Sanitation, Finance, Budget and Planning, and Justice, was established to coordinate the project’s implementation.
“A schedule of pre-commencement activities, including resettlement, access road construction, security, and airfield provision, has been prepared. Additionally, 27 MDAs and over 500 companies have been identified for the 15% local content counterpart funding.”
He noted that the project will follow Presidential Executive Order 5, which provides a framework for local content regarding preference, accreditation, capacity development, and contract award.
He expressed concerns over the potential hindrance caused by contradictory information about the project and highlighted an agreement between a Russian firm and the Republic of Niger to construct the Kainji hydroelectric project, which could reduce water supply and affect Kainji Dam’s electricity generation capacity.
Senator Manu concluded by commending President Tinubu’s proactive steps at the Climate Summit in Dubai, UAE, to enhance Nigeria’s electricity supply through renewable energy initiatives.
Do you have news for us? Or feedback? Reach us at info@theplenary.com.ng