Tuesday, June 20, 2017

2-IN-1 STORY: Hope Rises For 3,050MW Mambilla Hydro Project; Landslide May Stall Mambilla Hydro-Power Project

Nigeria: Mambilla Hydropower Project back on the cards: Fashola - SweetCrudeReports
Hopes that the long delayed construction of the 3,050MW Mambilla hydropower project in Taraba State will resume soon were raised yesterday when a ‘No Objection’ certificate from the Bureau of Public Procurement (BPP) landed on the desk of Minister of Power, Works and Housing Babatunde Raji Fashola.
 Daily Trust report continues:
The minister, who granted an exclusive interview to Daily Trust yesterday, said with the 'No Objection' certificate’s arrival, the ministry was ready to go forward and seek the Federal Executive Council’s [FEC] approval for the contract to be awarded.
Fashola said, “It is good you mentioned Mambilla. The ‘No Objection’ for Mambilla just came into my office today [Monday]. It is still on my desk. These are all of the bureaucratic processes of getting things done in government.” Displaying the document he said, “This is the ‘No Objection’ for Mambilla. Now we can go to FEC, get approval and award the contract. This is what it takes. For the cost, I won’t tell you until FEC approves it. The Permanent Secretary is working on the memo and I am hoping that I can sign it tonight [yesterday].” 
It will be recalled that in June last year, the Power Ministry said government agreed to use two Chinese firms, Gezhouba Construction Group Corporation (CGGC) and Sinohydro Corporation for the Engineering, Procurement and Construction [EPC] contract of the project, said to be the largest yet in West Africa. A director in the ministry said the project cost was reviewed as “The Bureau of Public Procurement (BPP) has valued the project at US$5.732 billion (about ₦1.140trn).” He said the project’s contract is for a period of 63 months after it is flagged off, including 12 months for a Defect Liability Period (test running) before it is handed over.
On funding for the mega project, Daily Trust gathered that 85% of the funding is ready with the China Export Import (EXIM) Bank and would be disbursed once the Federal Government provides its counterpart funding. However, government is said to be eyeing the 15% counterpart funding from proceeds of the sale of the ten National Integrated Power Plants (NIPPs).
Fashola also lamented the cut in the Power, Works and Housing Ministry’s 2017 budget proposal by the National Assembly. He listed several major projects including the Lagos-Ibadan expressway, Abuja-Lokoja, Kano-Maiduguri and other uncompleted highway projects for which the National Assembly slashed the ministry’s requests by ten to ₦21 billion each. He said with those cuts, the projects are bound to suffer more delays and cannot be completed soon.
The minister confirmed that plans are afoot to rebuild toll gates on federal highways. He listed many economic and security benefits of the toll gates apart from revenue generation. Fashola however said no toll gates will be erected on any federal highway until its construction is completed.
Landslide May Stall Mambilla Hydro-Power Project
August 30, 2016
Economic Confidential reports that the over US$3.2billion Mambilla Hydro-power project with the capacity to generate 3050 megawatts(MW) is being threatened by several factors including massive landslide and bad roads.
The Mambilla hydro-electric power project in Taraba State was initiated in 1982 to serve as the largest single hydro-power station in Nigeria. The contract was awarded on May 28, 2007 at the sum of US$3.2 billion to China Gezhouba Group Company Limited (CGGC) and another Chinese consortium, Sinohydro.
The current six biggest thermal stations in the country have a total capacity of 3030MW which is still far less than Mambilla’s 3,050MW.
The Economic Confidential gathered that the contract sum has increased to about US$6billion due to inflationary trends as Chinese Firms are expected to provide 70% of the sum while 30% would be provided by the Federal Government of Nigeria. Due to various factors the project was suspended during the previous administrations.
In an effort to ensure the speedy completion of the project, President Muhammadu Buhari was in China this year to seek the assistance of Chinese government, the major financier for the power-station.
Recently some foreign engineers in company of government officials on an inspection visit to Taraba State refused to proceed further to Barup, the project site due to bad roads damaged by massive landslide. Other access roads are bushy that only bikes could ply while the rivers have no functional bridges.
All entreaties by officials and members of the local community were not heeded by the foreigners who insisted that they would not continue the journey on dangerous paths.
A source at the Federal Ministry of Work Power and Housing told the Economic Confidential that the Minister, Raji Fashola has shown keen interest in ensuring the completion of the project because of its potential to add 3000MW to the grid through Hydro-Electric project rather than expensive gas plants.
The officer added that “the Ministry is working towards assessing the condition of the roads for immediate solutions. We are all aware that the project would provide employment opportunities and is expected to boost national economic growth.”
Also concerned about the development, former President Olusegun Obasanjo urged President Buhari to immediately complete the Hydro Power Project to increase the energy potentials of Nigeria and pave way for more development.
Obasanjo who was speaking with news men in Jalingo, Taraba State said that the project would be of great benefit to the region and to Nigeria and as such must be quickly completed. He added that the cost of completing the project was rising by the day stressing that it would be better to complete it now than wait for when it would be more expensive.
A community leader and Chairman of Mambilla Plateau Legacies Forum (MPLF), Mallam Ibrahim Ismail Sadiq appealed to the Federal and state governments to take urgent measures at addressing the problems of the roads and open up the potentials of the plateau.
He said that the surrounding communities that are borders to Cameroon Republic are on the verge of being cut off from Nigeria as a result of the landslide that occurred on the only road linking Mambilla Plateau with Taraba state and Nigeria as a nation.
He said that: “Many foreign investors are reluctant to ply the dangerous roads that are dilapidated by landslides while the rivers could not be accessed by vehicle due to lack of functional bridges.
“Apart from the potential to generate power-supply, Mambilla Plateau offers attractive settings worth of massive investments than anywhere in Nigeria because of its unique physical and conducive climatic conditions for human settlement and cattle breeding.”
The Mambilla Plateau is a high grassland with an average elevation of 2419m (5249ft) above sea level, making it the highest Plateau in Nigeria which occupies an area 9389km§.
It has cattle ranches, tea plantation and rolling glassy hills. It is a home to some rare species of birds and animals. The highland is also home to Nigeria and west Africa’s only highland tea plantation and production.

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