NIGERIA – The minister of power, Abubakar Aliyu, has said the Economic and Financial Crimes Commission (EFCC) is currently investigating the controversial award of the $5.8 billion Mambilla hydro-electric power project to Sunrise Power.
Recall that Sunrise has taken Nigeria to arbitration alleging breach of contract, but the manner of the award of the contract in 2003 has raised eyebrows.
Appearing before the senate committee in Abuja on Tuesday, Aliyu said the ministry has met with stakeholders and all issues of concern are being resolved.
He added that the Sunrise litigation on the project was the only problem hampering its commencement.
“Regarding Mambilla, we have met with stakeholders and we are resolving the situation,” he said.
“It has something to do with litigation, there is nothing going on as regards moving to site.
“The EFCC has stepped into the matter and we have given them information about it, we have given them the history of the power project. Our lawyers have interfaced with the anti-graft agency. Unless we are able to pull out of litigation, we can’t do anything.
“I don’t think the investor will bring his money where there is encumbrance.”
Gabriel Susuwan, chairman, senate committee on power, said the project was a mirage as far as the national assembly was concerned.
This, he said, was because funds had been budgeted for many years and there was nothing on ground.
He said the initial scope of the project was slightly about 3,000 megawatts, saying that there were issues.
“We were told that it was going to be re-scoped, even the re-scoping of the project has not been done,” he said.
“So in essence, it means that there is no project that is on ground like Mambilla. It is all about talks and lips service, that is why we are concerned about the money that is provided for consultancy and the money used for the training of staff that are supposed to be utilised if Mambilla was in place.
“Why provide money all these years when nothing actually is on ground.”
He said the committee has directed the minister of power to ask the permanent secretary and other desk officers to appear before it to explain how the yearly budgetary allocations for Mambila have been utilised.
“Since 2017, monies has been provided for Mambila but nothing has done on the project in spite of the pressure we have been mounting on federal government,” he said.
“It is clear that the Mambilla power project will not be able to start before the end of this administration.”
When completed, the 3,050megawatts power station is expected to be the largest power-generating installation in the country, and one of the largest hydroelectric power stations in Africa.
THE MAMBILLA DISPUTE
Sunrise, promoted by Leno Adesanya, had on October 10, 2017 taken Nigeria to arbitration for “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 $6 billion.
Nigerian authorities insist that the contract award was irregular and did not pass through due process while the EFCC has since opened investigations into the conduct of the government officials involved.
Olu Agunloye, the minister of power at the time, 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.
In his letter to Sunrise, he also listed pre-conditions for the contract to be consummated and none was met by the firm.
But Sunrise headed to court when a bid process for the civil works was announced by the government in 2007 and a series litigation has stalled the project.
To get the project off the ground, the federal government had attempted to settle the arbitration in 2020 with a compensation offer of $200 million but a lack of funds is believed to have truncated it.
The investigation of government officials by the anti-graft agency has also introduced a new dimension to the case.
In the P&ID arbitration, a fine rising up to $10 billion was awarded against Nigeria but there was some respite after the EFCC charged several officials involved in the failed gas processing agreement to court on allegations of corruption. Some have been convicted.
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