In a recent revelation, the Minister of Power, Adebayo Adelabu, has provided insights into the absence of any allocation for the Mambilla Power project in the ministry’s 2024 budget proposal. This disclosure took place during a session with a joint committee of the Senate and House of Representatives Committee on Power, presided over by Senator Enyinnaya Abaribe, on Monday.
Adelabu attributed the absence of allocation for the Mambilla project to ongoing legal disputes that continue to plague the initiative. He cited these disputes as the primary reason for the exclusion of the project from the ministry’s 2024 budget proposal.
The genesis of these legal challenges can be traced back to October 10, 2017, when the Sunrise Power and Transmission Company Limited initiated legal action against the Federal Government. The company dragged the government to the International Court of Arbitration administered by the International Chamber of Commerce in Paris, France. The basis for this legal action stemmed from an alleged breach of contract related to a 2003 agreement to construct the 3,050MW Mambilla power plant in Taraba State on a Build, Operate, and Transfer basis for a value of $6 billion.
In response, the Federal Government vehemently contended that the contract award was irregular and did not adhere to due process. This multi-faceted legal impasse has effectively halted progress on the Mambilla project, leading to its deliberate exclusion from the ministry’s 2024 budget proposal, as emphasized by Minister Adelabu.
He explicitly stated, “For Mambilla, there is no provision for it in 2024. It isn’t a mistake. It is deliberate. It is under international arbitration. Until it is resolved, we can’t do anything about it.” This unequivocally underlines the current impediments posed by the unresolved legal disputes.
However, amidst the challenges besetting the Mambilla project, Adelabu shared positive developments regarding the Zungeru plant. He affirmed that the hydropower plant is poised to commence operations in December, with a readiness level of 99.8%. Once operational, it is anticipated to facilitate the evacuation of power to the national grid. Adelabu reassured the committee that the Zungeru plant does not face similar obstacles and is on track for imminent operationalization, contingent upon the payment of concessionary fees.
This revelation sheds light on the intricate circumstances surrounding the Mambilla Power project and underscores the minister’s prudent decision to delineate the project from the 2024 budget due to its entanglement in protracted legal battles. While the Mambilla project faces substantial roadblocks, the progress of the Zungeru plant serves as a beacon of hope amidst these challenges, signifying a proactive stride towards enhancing Nigeria’s power infrastructure.
