Why Mambilla Power project is not captured in 2024 budget – FG
The federal government has disclosed why no fund is allocated to the Mambilla Power project in the ministry’s 2024 budget proposal.
The Minister of Power, Adebayo Adelabu, stated that there was no allocation for the Mambilla project because of the legal tussles and other disputes that dogged it.
The minister made the disclosure during a session with a joint committee of the Senate and House of Representatives Committee on Power chaired by Senator Enyinnaya Abaribe, on Monday.
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, insisted the contract award was irregular and did not pass through due process
Adelabu told 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
