The Minister of Power, Chief Adebayo Adelabu, confirmed on Monday that the much desired Mambilla Power Project was deliberately excluded from the 2024 budget of the federal government. He affirmed however, that the exclusion was not only deliberate, but intentional.
Addressing the Joint Committee of the Senate and House of Representatives Committee on Power, chaired by Senator Enyinnaya Abaribe, Chief Adelabu clarified that the absence of the Mambilla Project was a deliberate choice due to a significant legal dispute involving the federal government and Sunrise Power and Transmission Company Limited (SPTCL).
Recall that the legal battle started on October 10, 2017, when SPTCL accused the government of breaching a contract.
The minister highlighted that the contention was over an irregularity on the contract award. He stated that then Minister of Power, Dr Olu Agunloye, bypassed the due process by awarding the contract a day after the federal cabinet allegedly advised him to seek alternative funding sources. This created the loophole that necessitated Sunrise to take legal action against the government.
The ongoing litigations have stalled the progress of the Mambilla Project since 2007 when Sunrise contested a bid process for civil works announced by the government.
Adelabu emphasized to the legislative body that the deliberate omission of the Mambilla Project from the 2024 budget was due to its involvement in international arbitration. Until the legal matters are resolved, no progress can be made on the project.
On the relatated subject of the Zungeru Hydro Power Project, the Minister assured that it was nearly completed, standing at 99.8% readiness. He outlined plans to commence operations and integrate it into the national grid once concessionary fees are settled.
According to him, the major challenge in the power sector is not primarily generation but distribution, citing a significant loss of power during distribution due to outdated facilities of existing power distribution companies.
Adelabu proposed an unbundling solution, stressing the need for states to actively participate, especially in the distribution aspect.
Senator Abaribe expressed concern about the sustainability of free off-grid power ventures, while commending the Minister for his comprehensive understanding of power sector developments.
In his closing remarks, Senator Abaribe pledged to scrutinize the budget and explore collaboration opportunities, requesting a three-year summary of the ministry’s budget performance for evaluation.
