The Minister of Power, Chief Adebayo Adelabu, confirmed on Monday that the deliberate exclusion of the Mambilla Power Project from the ministry’s budget for the 2024 fiscal year was intentional.
He stated this before the Joint Committee of the Senate and House of Representatives Committee on Power, chaired by Senator Enyinnaya Abaribe.
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 the contention over the irregularity of the contract award, stating that it bypassed due process. The contract was awarded by Dr Olu Agunloye, the former Minister of Power, a day after the federal cabinet allegedly advised him to seek alternative funding sources, causing Sunrise to take legal action against the government.
The ongoing litigations have stalled the progression 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 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sector is not primarily generation but distribution, citing a significant loss of power during distribution due to outdated facilities of existing power distribution companies.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.
