FG seeks fresh path to revive 3,050MW Mambilla power project

THE Federal Government is exploring new options for reviving the long-delayed Mambilla Hydropower Project in Taraba State, including a phased construction strategy for the 3,050-megawatt plant.

Minister of Power, Dr Joseph Tegbe, said the government had engaged China Energy Engineering Corporation (Energy China) to determine the most practical way to deliver the project.

Tegbe disclosed this during a media briefing in Abuja to mark his first 100 days in office.

The renewed effort follows Nigeria’s recent victory in an arbitration dispute arising from the Mambilla project, clearing a major legal obstacle that had stalled progress on the scheme.

According to the minister, the government has asked Energy China to assess different delivery options for the project, including the possibility of breaking it into phases.

He said large hydropower projects such as Mambilla would form part of Nigeria’s medium- and long-term strategy for expanding electricity generation, alongside smaller hydro schemes designed to support agricultural production corridors.

Tegbe said Nigeria’s recent engagement with Chinese companies had also produced commitments to advance several priority power projects.

READ ALSO: Sunrise promoter admits $500,000 transfer to Atiku’s ex-wife during Mambilla negotiations

He identified Sinomach, China Machinery Engineering Corporation (CMEC), China National Electric Engineering Company (CNEEC) and Chinese financial institutions as some of the organisations involved in the discussions.

CMEC, he said, had reaffirmed its commitment to the 1.9GW Presidential Power Initiative, with the first transmission lines expected to be delivered in the first quarter of 2027.

CNEEC, meanwhile, has advanced financing arrangements for the $116 million Zungeru power evacuation project, according to the minister.

Tegbe also disclosed that Tebian Electric Apparatus Stock (TBEA) had committed to a proposed $500 million industrial park for manufacturing power equipment in Nigeria.

HengFei Cables, he said, had committed to supplying cables for the second phase of the Presidential Power Initiative and was considering establishing a cable assembly plant and training centre in Nigeria.

The minister said the government’s strategy was aimed at combining power infrastructure investment with local manufacturing and technical skills development.

He said the next phase of the government’s electricity programme would also focus on stabilising the national grid along the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors.

Technical audits have commenced on the Lagos and Abuja corridors to identify weak points in the transmission network and guide future investment, he said.

Mambilla dispute

The Mambilla project dates back to a 2003 agreement between Sunrise Power and the Federal Government for the development of a 3,050MW hydropower plant in Taraba State under a build-operate-transfer arrangement.

Sunrise later commenced arbitration against Nigeria on October 10, 2017, seeking $2.35 billion over an alleged breach of the agreement.

READ ALSO: $6bn Mambilla case: Witness links FEC extract to SGF office, details EFCC request process

The dispute subsequently led to negotiations between the company and the government, resulting in a proposed $200 million settlement in 2019.

An agreement signed in January 2020 provided for payment of the settlement, while a March 2020 addendum divided the amount into two $100 million instalments and provided for an additional $200 million penalty in the event of default, alongside interest.

The settlement was not paid after former President Muhammadu Buhari declined to approve the payment, citing the government’s inability to raise the $200 million.

Sunrise subsequently returned to arbitration to pursue claims arising from the settlement.

On September 17, the International Chamber of Commerce arbitration tribunal in Paris ruled in favour of Nigeria in the $2.35 billion claim brought by Sunrise Power over the Mambilla hydropower project.

The ruling has now opened the way for the Federal Government to pursue a fresh implementation strategy for one of Nigeria’s largest proposed power-generation projects.