The Federal government on Friday signed the contract for the 3,050 megawatts (mw) Mambilla hydropower project valued at $5.792 billion (close to N2.096 trillion) in Taraba State.
Speaking yesterday while signing the contract agreement for the joint venture with three Chinese firms, the Minister of Power, Works and Housing, Mr. Babatunde Fashola said the development will mark a new dawn for Nigeria’s power sector.
While Fashola signed the contracts agreement on behalf of the Federal Government, the representatives of the Chinese firms who signed for their organisations include Yong Jun for China Gezhouba Corporation, Gan Yongskiv for Sinohydro Corporation Ltd and Ye Shijing for CGOC Group Ltd.
The minister further commended President Muhammadu Buhari for executing the project which has been on the drawing board for about 40 years.
He said, “The project is a new dawn for Nigeria’s power diversity and energy mix. This project will give us the opportunity for energy security, it will give the opportunity to comply with our Paris Climate Change Agreement because it will be delivering renewable energy.”
The $5.79bn project is expected to be completed in six years. The funding consist of $4.92bn from the Chinese Exim Bank and other Chinese lenders are expected to provide 85 percent of the contract sum amounting to $4.92 billion, the Federal Government will put forward 15 percent amounting to $868.87 million.
The scope of work for the project includes, four large dams (Nya, Sumsum, Nghu and Api Weir), and two underground power house of 12 units of 250mw each.