Why Mambilla Power Project Didn’t Get Any Allocation in 2024 Budget – Minister

In a recent session with the joint committee of the Senate and House of Representatives Committee on Power, the Minister of Power, Adebayo Adelabu, shed light on the absence of any allocation for the Mambilla Power project in the 2024 budget proposal from the Ministry of Power.

During the meeting chaired by Senator Enyinnaya Abaribe, Minister Adelabu cited persistent legal disputes surrounding the Mambilla project as the primary reason for its exclusion from the budget. He emphasized that until these legal matters are resolved, no provisions can be made for the project.

The controversy dates back to October 10, 2017, when Sunrise Power and Transmission Company Limited initiated legal proceedings against the Federal Government. The company accused the government of breaching a 2003 agreement to construct a 3,050MW power plant in Mambilla, Taraba State. The project was intended to operate on a Build, Operate, and Transfer basis for a budget of $6 billion.

In response, the Federal Government argued that the contract award was irregular and did not undergo due process. The case is currently under international arbitration at the International Court of Arbitration administered by the International Chamber of Commerce in Paris, France.

Minister Adelabu affirmed that the deliberate omission of the Mambilla project from the 2024 budget is a strategic decision, given the unresolved legal complexities. He stated, “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.”

In contrast, Adelabu provided positive news regarding the Zungeru hydropower plant, revealing that it is 99.8% ready for operation. He anticipated the plant’s commencement of operations in December, emphasizing that there are no hurdles for the Zungeru project, and full operation will ensue once concessionary fees are settled.