2024 Budget: Non- inclusion of Mambilla Power project deliberate- Minister

By Tunde Opalana

Minister of Power, Chief Adebayo Adelabu said the non- inclusion of the Mambilla Power Project in the ministry’s 2024 Budget was not an omission but deliberate.

He made the clarification when he appeared before a Joint Committee of the Senate and House of Representatives Committee on Power.

He attributed the deliberate exclusion of the Mambilla Project to the fact that the project is in serious legal crisis.

Recall that on October 10, 2017, Sunrise Power and Transmission Company Limited (SPTCL) 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, Taraba State, on a “build, operate and transfer” basis for $6 billion.

The Federal Government, however, insisted that the contract award was irregular and did not pass through due process.

Sunrise approached the court when a bid process for the civil works was announced by the government in 2007 and a series of litigation had since stalled the project.

Adelabu told the Senators and members of the House of Representatives that he deliberately removed the Mambilla Project in his Ministry 2024 Budget.

He said:” For Mambilla, there is no provision for it in 2024. It isn’t a mistake. It is deliberate. It is under international arbitration. Until it is resolved, we can’t do anything about it.”

The minister, however, assured that the Zungeru Hydro Power Project was almost completed, Located in Niger State, the hydroelectricity Power Plant, is a 700MegaWatt power station.

He said “the hydro power plant is 99.8% ready. It is almost completed and we intend to start operation this year and commence evacuation to the national grid. Immediately concessionary fees are paid, we will start full operation. So, we don’t have problem with Zungeru.”

Giving an overview of Nigeria’s power sector, Adelabu explained that the biggest challenge facing the sector is not generation, but distribution as he noted that substantial power generated are lost in the process of distribution. He attributed the problem to the distance between the spot of generation to the distribution network .

He maintained that the facilities of the existing power distribution companies are obsolete and needed to be upgraded.
“In the process of transmission to distribution, we lose power because of the distance of travel. You lose close to 40% when you move from area of transmission to distribution.

“The existing Distribution Companies, (DISCOS) aren’t doing new investment to change their old facilities to new ones. When you lose 40% to evacuation, it is a big loss. So we need to have enormous investment in the distribution chain.

“What we are trying to do going forward, is to expand our transmission facilities . Within the next two years,there must be improvement.”

Speaking further on challenges with distribution of power, Adelabu restated his call for the unbundling of the distribution companies.

“The government can take responsibility for transmission because it is fully owned. But when it comes to distribution, the states must be involved. The DISCOS must be closely monitored by states. My proposal is that they must be unbundled. The states must be involved when it comes to distribution.

“Even when it comes to transmission lines, the states are well placed to secure the right of ways for us.”

Chairman of the Senate Committee on Power, Senator Abaribe expressed strong reservations about the off-grid power that are given free as he insisted that such ventures are not sustainable.
In his response, the Minister of Power said his Ministry was making conscious efforts to ensure sustainability of the project.

“We have taken steps to ensure that the projects aren’t flash in the pan, that they are sustainable..

“Going forward, we are going to install batteries that have life span of minimum of 8 years. Most of the communities see it as Corporate Social Responsibility and as free power. But we are telling them that isn’t sustainable.

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“We are going to involve a private sector operator to ensure that they pay a token
If the community chooses to maintain it themselves they can organize themselves into a team to ensure that the technology is sustained.

“The second aspect is that the off-grid we are going to use going forward will be embedded into the existing DISCOs.

“If you are connected into the Discos in your areas, they can allow you use their light to recharge your batteries.”