Minister of Power, Adebayo Adelabu, has given insight into why the Mambilla Power project did not get any allocation in the ministry’s 2024 budget proposal.
Adelabu gave this explanation during a session with a joint committee of the Senate and House of Representatives Committee on Power chaired by Senator Enyinnaya Abaribe, on Monday.
He noted that legal disputes had continued to affect the Mambilla project, hence there was no allocation for it.
Sunrise Power and Transmission Company Limited had on October 10, 2017, dragged the Federal Government to the International Court of Arbitration administered by the International Chamber of Commerce, Paris, France for alleged breach of contract in relation to a 2003 agreement to construct the 3,050MW plant in Mambilla, Taraba State, on a Build, Operate and Transfer basis for $6bn.
The Federal Government, in its defence, argued tthe contract award was irregular and did not pass through due process.
The Minister explained to the senators and members of the House of Representatives that he deliberately removed the Mambilla project from the ministry’s 2024 budget proposal.
He said, “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.”
He said that the Zungeru plant will begin operation in December.
“The hydropower plant is 99.8 per cent ready. It is almost completed and we intend to start operation this year and commence evacuation to the national grid.
“Immediately concessionary fees are paid, we will start full operation. So, we don’t have a problem with Zungeru,” he said.
