The Ministry of Power, Works and Housing, led by Babatunde Fashola, has signed an agreement of $5.792bn, for production of 3050 megawatts of electricity with three Chinese Companies which will execute the Mambilla Hydro Power Plant project in Nigeria.
The Federal Executive Council had earlier approved the Mambilla Hydro Power Plant project to Joint Ventures of Chinese Civil and Engineering Company for the engineering and turn-key contract, including civil and electro-mechanical works.
The project, which would be jointly funded by the Nigerian Government and China Export Import (EXIM) Bank, was conceived in 1972 and will take six years to be completed. EXIM bank will provide 85% of the cost while the Federal Government would provide the remaining 15%.
The Minister stated that the Hydro Power Plant will increase Nigeria’s energy mix, provide energy security and open the Country’s economy, to various opportunities including agriculture.
He explained that it will also help Nigeria address the issue of climate change and fulfil its commitment under the Paris Agreement, saying it is going to be renewable energy, coming at a competitive cost.
Fashola added that the Ministry of Power would jointly execute the project with the Ministry of Environment, Water and Finance, with the latter would leading the process of sourcing for funds.
In 2016, about 40 Chinese Engineers visited the Mambilla Hydro Power Plant site in Taraba State.
Nigeria’s currently generates 7,000 megawatts of electricity and needs 160,000 MegaWatts to meet demands even though it will take 4o billion dollars to attain 20,000 MegaWatts in 2020.
