Minister of Power, Adebayo Adelabu, has said the exclusion of the Mambilla hydro power project in the 2024 budget is deliberate based on the legal tussle surrounding it.
Adelabu, who made the disclosure when he appeared before a joint committee of the Senate and House of Representatives Committee on Power, which has Enyinnaya Abaribe as Chairman, said the project is in serious legal tussle.
The Guardian checks revealed that Sunrise Power and Transmission Company Limited (SPTCL) had on October 10, 2017 dragged the Federal Government to the International Court of Arbitration administered by the International Chamber of Commerce (ICC), Paris, France, for “breach of contract” in relation to a 2003 agreement to construct the 3,050MW plant in Mambilla, on a Build, Operate and Transfer (BOT) basis for $6 billion.
The government, in its defence, insisted that the contract award was irregular and did not pass through due process. Then Minister of Power, Dr Olu Agunloye, awarded the contract a day after the federal cabinet reportedly told him to step down his request for approval and explore other sources of funding for the project.
Adelabu told the committee that he deliberately removed the project in his ministry’s 2024 Budget.
HOST communities in Sardauna Local Council of Taraba State had expressed disappointment following the exclusion of the project in the federal budget.
Chairman of the host communities, Bobboi Kaigama, was more disappointed that the country would miss the project’s potential to generate 3,050 megawatts of electricity.
Despite the absence of funding, Kaigama expressed hope that the Federal Government’s decision might be linked to a possible investigation into the funds previously allocated to the project.
He stated: “Perhaps, the Federal Government wants to investigate the substantial amount spent on the multi-billion power project; hence, it did not allocate funds for the project in the 2024 budget.”
Kaigama expressed support for such an investigation, stressing the importance of accountability.
However, he underscored that if the lack of allocation stemmed from the project not being a priority on President Bola Tinubu’s list, it would be unfortunate and a disservice to the people of Taraba, the North East zone and the country as a whole.
The chairman emphasised the transformative potential of the Mambilla project, asserting that its execution could provide a significant boost, with 3,050 megawatts of electricity.
He added: “If the zero allocation to Mambilla hydro power project by the present administration was because the government has no intention to execute the project, it is very disappointing.” He noted that if the Tinubu administration indeed abandoned the project, it signifies lack of commitment to develop infrastructure in the power sector.
