Skip to main content

FG: Why We Reduced Mambilla Power Project from 3,500MW to 1,500MW

 

The Minister of Power, Engr. Sale Mamman on Tuesday justified the reduction in the capacity of the Mambilla power project from 3,500 megawatts to 1,500 megawatts, saying it was to ensure adequate funding by lenders.

Minister disclosed this while appearing before the Senate committee on Power said capacity of the power project was rescoped to 1500 megawatts to make it bankable and acceptable to the lenders.

He said: “We discovered that the 3050 megawatts is not visible. We have sent officials to China to review the project and the memo is on the table of Mr President waiting for approval.

“The idea of rescoping the project is to make it bankable. The market that we are operating today in Nigeria is different from the market that was operated when the Mambilla project was conceived.


“Today we need a project that can be paid for in the market. We are funding the project with loan from a lender who is only interested in funding a project that can pay back the loan. Most of the issues around the Mambilla power plant are on bankability of the project. What we did was to redesign the project to be bankable and acceptable to the lenders.”

In his speech, Chairman of the committee, Senator Gabriel Suswam, asked the Minister to account for the N812 million the federal government paid to the Taraba State government for surveying and demarcation of land where the project would be sited.

Suswan said the ministry must account for how the money was used since it given by the federal government adding that “it is left for you to ask the Taraba government to furnish you with the details of how the N812 million was spent”.

A member of the committee, Senator Yusuf A. Yusuf, however, expressed concern that paying the money to the state government would make it impossible for the Senate panel to oversight how the money is spent.

He said: “We can’t appropriate money for land survey and demarcation for Mambilla power project and the money is given to Taraba government to engage land surveyors. This is make it difficult for the Senate to oversight the usage of the money”.

Responding, the Minister said the money was paid to Taraba State government based on the agreement between the state and the federal government.

“We entered into agreement with the state to support it with money to engage firms, based on the local procurement process, to survey and demarcate the land it donated for the project,” he said.

The $5.8 billion Mambilla power plant in Taraba State planned over three decades ago was designed to generate 3,050 megawatts of electricity.

In 2017, the federal government approved the construction of the project to a Chinese state firm.

China’s Export-Import Bank will provide 85 percent of the funding and Nigerian government will supply the remaining 15 percent for the joint venture.


VANGUARD 

Comments

Post a Comment

Popular posts from this blog

Taraba Governor Approves Cabinet Reshuffle, Redeploys Four Commissioners

Taraba State Governor, Dr. Agbu Kefas, has approved the immediate redeployment of four Commissioners serving in the State Executive Council as part of a cabinet reshuffle. The redeployment, contained in a press release dated August 26, 2026, and signed by the Secretary to the State Government, Chief Gebon Timothy Kataps, Esq., affects four ministries. Under the new arrangement, Hon. Peter George moves from the Ministry of Commerce, Trade and Industry to the Ministry of Water Management and Aquatic Affairs, while Hon. Daniel Ishaku is redeployed from Water Management and Aquatic Affairs to the Ministry of Waste Management and Resource Innovation. Also affected are Hon. Bernard Shonzen James Kassa, who moves from the Ministry of Waste Management and Resource Innovation to the Ministry of Social Development and Human Services, and Hon. Philip Habu James, who is redeployed from the Ministry of Social Development and Human Services to the Ministry of Commerce, Trade and Industry...
Post a Comment
Read more

Tinubu approve reconstruction of Numan-Jalingo, Mutum Biyu–Garba Chede, Mayo Selbe–Gembu roads

By Taraba Facts President Bola Ahmed Tinubu’s approval for the completion of the long-abandoned Jalingo–Numan Road, rehabilitation of the Mutum Biyu–Garba Chede Road and construction of the Mayo Selbe–Gembu Road has been welcomed as a major development for Taraba State. The approval is expected to address some of the state’s long-standing road infrastructure challenges and improve connectivity between communities, commercial centres and neighbouring states. The Jalingo–Numan Road, which has remained abandoned for years, is considered a critical route for the movement of people and goods between Taraba and Adamawa states. Its completion is expected to ease transportation, reduce travel difficulties and support economic activities along the corridor. Similarly, the rehabilitation of the Mutum Biyu–Garba Chede Road and construction of the Mayo Selbe–Gembu Road are expected to improve access to rural communities and boost agricultural, tourism and commercial activities, particu...
Post a Comment
Read more

Kefas Bans Livestock Rearing in Residential Areas of Jalingo, Imposes ₦50,000 Fine

The Taraba State Government has banned the rearing of animals in residential areas and other parts of Jalingo, the state capital, as part of efforts to tackle environmental nuisance, safeguard public health, and maintain a cleaner and more orderly city. The government also warned that anyone found violating the directive will face an immediate fine of ₦50,000. Chairman of the Taraba State Environmental Sanitation Agency (TSESA), Mr. Iliya Kefas, announced the ban during the state's monthly environmental sanitation exercise in Jalingo.
Post a Comment
Read more