FG, 3 Chinese Firms Agree to Build 3,050MW Mambilla Power Plant in 6 Years

Minister of Power, Works and Housing, Mr. Babatunde Fashola
Minister of Power, Works and Housing, Mr. Babatunde Fashola

Chineme Okafor in Abuja

The federal government on Friday signed an agreement with a consortium of three Chinese companies to build the 3,050 megawatts Mambilla hydro power project located in Taraba State within six years.

The project which is expected to cost $5.79 billion would be funded by the Nigerian government and Chinese lenders through the China Exim Bank, on the ratio of 15 and 85 per cent respectively.

The firms include China Gezhouba Group Corporation (CGGC), Sinohydro Corporation Limited (SHC) and CGCOC Group Co. Limited.

Within the deal, the Chinese Exim Bank and other Chinese lenders are expected to provide $4.92 billion representing 85 per cent of the project’s cost while the federal government will put forward $868.87 million which represents the 15 per cent.

Also, the scope of work for the project includes four large dams – Nya, Sumsum, Nghu and Api Weir, two underground power house of 12 units of 250MW each, two numbers of 330kV of 700 kilometres transmission lines to Markudi and Jalingo, 120 kilometres of access roads connecting the project site and nearby communities and resettlement of an estimated 100,000 impacted persons.

On August 30, the Federal Executive Council (FEC) approved $5,792,497,062.00 for the project which has been in the making for over 40 years.

That approval thus paved the way for the signing of the contract document with the China Gezhouba Group Corporation (CGGC), Sinohydro Corporation Limited (SHC) and CGCOC Group Co. Limited, all considered a joint venture.

It also now allows the federal government to seek finance to meet its counterpart funding obligation to the project.

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, who signed on behalf of the Nigerian government, said the project would open a huge window of opportunity for Nigeria to harness its hydro potentials for electricity and irrigation purposes.

He commended government officials and the Chinese for making the project a reality, adding that when completed, the project would change the dynamics in Nigeria’s power sector.

Fashola said: “The project is a new dawn for Nigeria’s power diversity and energy mix. It will give us the opportunity for energy security. It will also give us the opportunity to comply with our Paris Climate Change Agreement because it will be delivering renewable energy.

“It will provide the opportunity to unlock the gift of nature to Nigeria in Taraba State, agriculture, energy, construction and development. You only need to see the number of applications we have already received from people who want to participate in the logistics.”

He further said the project implementation would involve the ministries of environment, water resources, justice and finance, adding, “This is going to be inter-ministerial undertaking.”

For the Chinese companies, Yong Jun signed for CGGC, while Gan Yongzhi signed for Sinohydro and Ye Shuijiv signed for CGCOC Group.

The Mambilla hydro project is located in Sarduana Local Government Area of Taraba State. Its preliminary feasibility study was reportedly carried out by Moto Columbus in 1972.

Also, between 1981 and 1985, Diyam Consultants with Binnie and Partners UK carried out another preliminary study and recommended 3960 MW.

In 2011, the FEC equally awarded another consultancy services for detailed engineering design and project management and supervision to Messrs Coyne et Bellier/Decrwon/WADSCO JV Consultants to further review the two previous studies based on new hydrology and geology investigation.

  • Benbella

    Whatever Happen to the Nigeria Company Tafarg Engineering Company the Original Contract Owner of the Mambilla Power Projects since when Ex-President Obasanjo was in Power, FG signed an agreement Tafarg Engineering Company too , with Finances in Place from America & Europe also Canada with Proving Technical Expertise for the past 18 years no show, the same old stories for the Nigeria Company ?, why the Government playing games with signed contract and why Chinese Companies now ? , Of Course his case is in Court as i expose this deals to Nigerian, The deal belongs to the Nigeria Company YEAH!!!!!

  • Sankara 2

    Fashola is beginning to realise that governance is not all talk. For this feat you manage to achieve , GEJ did 95% of the job. So tell us how your analogy of six months for fixing power and your acclaimed super intelligence or know-it-all stand has been able solved the power situation in 3 yrs ooops 6 months.

  • Okworld

    The cost should not exceed $3 B because the international price for a Mega watts is the same

    • marcos avelino

      The approximate cost of a million dollar per MW is for power stations using thermal – oil , coal or gas. This is a hydro project requiring extensive civil engineering , even tunnels are involved here to attain substantial pressure. Check the cost of comparative large scale hydro , the cost here is within industry average

  • ainababa

    However Nigeria image crises, when sign of positive thing is shown like this agreement it is important to praise the government. We easily criticize the failure of government but unreluctantly and with zeal deprived their good effort. God bless Federal Republic of Nigeria.

    • john

      This project would have cost much less years ago. But previous administrations chose to loot instead of prioritising on supplying energy for economic growth.

      • Henry

        It is good you read reports or articles properly before you make comments. This project was neither conceived or the extensive design, scope and preparatory work carried out by this administration. The final consultancy services in this regard, due diligence and the award of this contracts and foreign counterpart financing were done by the previous government starting in 2011.The Chinese were actually jittery at the coming on-board of this administration and were worried if Buhari will follow through with commitment of the GEJ government regarding the Mambilla power project. We should all commend this government for not abandoning critical development projects initiated by previous government and particularly its focus and commitment to this project without unduly vilifying previous government’s effort without which these milestone will not be achieved. If you do not know, do not mislead the public in the name of APC/ PDP politics. Issues of serious national development should not be reduced to politics.

        • Sam

          It took Gej how many years to study the report from 2011?

          • Henry

            Another ignoramus who neither reads or nor keeps quiet. Who is talking about studying report here?

        • walejohnson

          Good talk.

        • Abiola Lawal

          Good talk. We need to learn to be objective, and separate politics from development.

    • FirecloudOFGOD

      Announcing projects are one thing, starting and completing them, are another. Are you aware of how many projects have been announced in Nigeria since last 40 years and they remain uncompleted?

      Premium in Nov. 2012 announced that “About 12,000 federal projects abandoned across Nigeria.“! Yes 12,000! Google it and you will be shocked.

      Something to digest: “In 1979, the federal Government of Nigeria under General Olusegun Obasanjo, signed a global contract that was opened to bidders from the whole world. The leaders believed then that without a functional steel industry, there can be no industrialization and no material with which to build infrastructure.”

      “The contract was signed with TyajzPromExport of the then Union of Soviet Socialist Republics for the establishment of the Ajaokuta Steel project. The date of completion was 1986 but it was never completed till date due to policy inconsistencies and massive project corruption for which no one was ever punished.”