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EFCC probes $6bn Mambilla Power project, says Minister

Mambilla Power project site

The Minister of Power, Abubakar Aliyu, yesterday, in Abuja, said the Economic and Financial Crimes Commission (EFCC), has commenced investigation into the controversial $6 billion Mambilla Power project, currently a subject of legal tussle.

Aliyu disclosed this in response to the concern raised by the Chairman, Senate Committee on Power, Gabriel Suswan, over the situation of the project during the 2023 budget defence of the Ministry before the committee.

According to him, the Ministry had met with stakeholders and all issues of concern are currently being resolved, adding that the issue of litigation on the power project has been an obstacle.

He said: “Regarding Mambilla, we have met with stakeholders and we are resolving the situation. It has something to do with litigation, there is nothing going on as regards moving to site by the contractor.

“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 their money where there is encumbrance.”

Mambilla hydropower project is a 3.05GW hydroelectric facility being developed on the Dongo River near Baruf, in Kakara Village, Taraba State.

However, Suswam said: “To us in the National Assembly, the Mambilla Power project is a mirage; there is nothing to show for it despite the money that has been provided year in, year out.

“It is clear that the Mambilla Power Project will not be able to start before the end of this administration.”

To us in the National Assembly, the Mambilla Power project is a mirage; there is nothing to show for it despite the money that has been provided year in, year out.

Protracted contract

Recall that the federal government awarded a $6 billion Build, Operate and Transfer (BOT) contract to Sunrise Power and Transmission Co. Limited and its Chinese consortium partners on May 22, 2003.

Sunrise consortium secured a $5.5 billion Chinese Eximbank loans in 2005, while the Nigerian Government on May 28, 2007, and signed a $1.46 billion civil works contract with the Chinese firm, Messrs China Gezhouba Group Corporation/China Geo-Engineering Corporation (CGGC/CGC), in clear violation of the Sunrise BOT contract.

In November 2007, Sunrise filed a petition to then President Umaru Musa Yar’Adua and the $1.46 billion EPC contract was terminated in 2009.

The Nigerian Government signed a General Project Execution Agreement (GOEA) with Sunrise and its Chinese Consortium partners for the execution of the Mambilla Hydropower project.

However, on November 12, 2017, the government signed a $5.8 billion EPC contract with another Chinese Consortium, despite numerous written warnings from the current Attorney-General of the Federation to the Federal Ministry of Power, Works and Housing in 2016 and 2017 to respect the GPEA contract with Sunrise.

Sunrise resorted to arbitration against the Nigerian State and Sinohydro consortium of China in 2018, claiming $2.3 billion in damages.

With the intervention of the Chinese president, who sent a special envoy to President Muhammadu Buhari in July 2019, the Federal Government and Sunrise signed a settlement agreement in January 2020.

This settlement was advised by both the Chinese Ambassador to Nigeria and Chairman of China Eximbank, who had made the settlement condition precedent to any loans for the Project.

However, the Federal Government defaulted. Sunrise, in September 2021 withdrew the $500 million settlement arbitration on the condition that the Federal Government makes a financial commitment towards the project and respects its right as the exclusive local content partner.

But the Government failed yet again to make any payments to the EPC contractors and/or the counterpart funds to China Eximbank.

While being unable to defend its failure to honour its agreements to Sunrise, the government requested that the ICC should direct “that Sunrise to produce certain information showing its true legal and beneficial ownership.”

The request, according to the government, was based on the allegation that there exist Pandora papers suggesting that Leno Adesanya secretly transferred an interest in Sunrise to the family of Nigeria’s former National Security Adviser, Col. Sambo Dasuki (rtd).

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