FG Seeks $5bn Chinese Loan for Mambilla Power Project
editorAugust 26, 2019 6:08 Am
Chineme Okafor in Abuja

Nigeria has formally requested for loan from China Exim Bank to build the 3,050 megawatts (MW) Mambilla hydropower generation plant, whose construction was billed to gulp $5.8 billion, THISDAY has learnt.


It was gathered from the officials of the Ministry of Power during a presentation to the new Minister of Power, Mr. Saleh Mamman, and the Minister of State, Mr. Goddy Jedy-Agba, that the Ministry of Finance had applied to China for the loan.

Under the contract financing arrangements, EXIM is to provide $4.93 billion in loan, representing 85 per cent of the capital funding, for the project while Nigeria will provide the balance of $870 million or 15 per cent of the cost outlay.

The Federal Executive Council (FEC) had on August 30, 2017 approved the award of contract for the project to China Gezhouba Corporation, Sinohydro Corporation Limited and CGOC Group Limited.

In November 2017, the then Minister of Works, Housing and Power, Mr. Babatunde Fashola (SAN), signed the contract.

During a state visit to China on September 7, 2018, President Muhammadu Buhari was told by the President of CGCC, the construction company, Prof. Lyu Ze Xiang, that “our target is to commence the project early next year (2019).”





3' 

FG Seeks $5bn Chinese Loan for Mambilla Power Project

editorAugust 26, 2019 6:08 Am

Chineme Okafor in Abuja 

Nigeria has formally requested for loan from China Exim Bank to build the 3,050 megawatts (MW) Mambilla hydropower generation plant, whose construction was billed to gulp $5.8 billion, THISDAY has learnt.

It was gathered from the officials of the Ministry of Power during a presentation to the new Minister of Power, Mr. Saleh Mamman, and the Minister of State, Mr. Goddy Jedy-Agba, that the Ministry of Finance had applied to China for the loan.

Under the contract financing arrangements, EXIM is to provide $4.93 billion in loan, representing 85 per cent of the capital funding, for the project while Nigeria will provide the balance of $870 million or 15 per cent of the cost outlay.

The Federal Executive Council (FEC) had on August 30, 2017 approved the award of contract for the project to China Gezhouba Corporation, Sinohydro Corporation Limited and CGOC Group Limited.

In November 2017, the then Minister of Works, Housing and Power, Mr. Babatunde Fashola (SAN), signed the contract.

During a state visit to China on September 7, 2018, President Muhammadu Buhari was told by the President of CGCC, the construction company, Prof. Lyu Ze Xiang, that “our target is to commence the project early next year (2019).”

However, THISDAY gathered that the project would not have started as scheduled unless the federal government made a formal request for loan to build the $5.8 billion project.

“Under the terms of the contract, China Export Import (EXIM) Bank will provide 85 per cent of the cost, while the federal government is to bear 15 per cent. The 85 per cent to be provided by EXIM is the loan being requested by the federal government. It is a formal request but it does not mean that EXIM bank will hand over the cash to the federal government. The money will be paid directly to the Chinese contractors on behalf of the federal government. But Nigeria has to make a formal request for the loan. Nigeria will also pay her 15 per cent counterpart funding,” a top official of the ministry of power told THISDAY at the weekend.

THISDAY gathered that during the presentation to Mamman and Jedy-Agba, said a team from the China-Exim Bank was recently in Nigeria to appraise the country’s readiness to commence construction of the power plant.

The officials told the new ministers that the Nigerian Sovereign Investment Authority (NSIA) was ready to pay off Nigeria’s counterpart funding in the project through the Presidential Infrastructure Development Fund (PIDF).

 NSIA had said it was appointed as the programme manager of the PIDF, adding it received $650 million from the National Economic Council (NEC).


Nigeria has formally requested for loan from China Exim Bank to build the 3,050 megawatts (MW) Mambilla hydropower generation plant, whose construction was billed to gulp $5.8 billion, THISDAY has learnt.

It was gathered from the officials of the Ministry of Power during a presentation to the new Minister of Power, Mr. Saleh Mamman, and the Minister of State, Mr. Goddy Jedy-Agba, that the Ministry of Finance had applied to China for the loan.

Under the contract financing arrangements, EXIM is to provide $4.93 billion in loan, representing 85 per cent of the capital funding, for the project while Nigeria will provide the balance of $870 million or 15 per cent of the cost outlay.

The Federal Executive Council (FEC) had on August 30, 2017 approved the award of contract for the project to China Gezhouba Corporation, Sinohydro Corporation Limited and CGOC Group Limited.

In November 2017, the then Minister of Works, Housing and Power, Mr. Babatunde Fashola (SAN), signed the contract.

During a state visit to China on September 7, 2018, President Muhammadu Buhari was told by the President of CGCC, the construction company, Prof. Lyu Ze Xiang, that “our target is to commence the project early next year (2019).”

However, THISDAY gathered that the project would not have started as scheduled unless the federal government made a formal request for loan to build the $5.8 billion project.

“Under the terms of the contract, China Export Import (EXIM) Bank will provide 85 per cent of the cost, while the federal government is to bear 15 per cent. The 85 per cent to be provided by EXIM is the loan being requested by the federal government. It is a formal request but it does not mean that EXIM bank will hand over the cash to the federal government. The money will be paid directly to the Chinese contractors on behalf of the federal government. But Nigeria has to make a formal request for the loan. Nigeria will also pay her 15 per cent counterpart funding,” a top official of the ministry of power told THISDAY at the weekend.

THISDAY gathered that during the presentation to Mamman and Jedy-Agba, said a team from the China-Exim Bank was recently in Nigeria to appraise the country’s readiness to commence construction of the power plant.

The officials told the new ministers that the Nigerian Sovereign Investment Authority (NSIA) was ready to pay off Nigeria’s counterpart funding in the project through the Presidential Infrastructure Development Fund (PIDF).

 NSIA had said it was appointed as the programme manager of the PIDF, adding it received $650 million from the National Economic Council (NEC).

NSIA added that the funds have already been disbursed for construction works on Lagos-Ibadan Expressway, Second Niger Bridge, and Abuja-Kaduna-Zaria-Kano Road.

It said that till date, it had disbursed N77.6 billion under the PIDF programme with Mambilla hydropower and East-West Road being the other projects undertaken under PIDF.

The construction of the hydro power project would take approximately six years because of the extensive nature of the scope of work, which include the construction of four dams, one of which is expected to be 150 metres high, another two to be constructed will be 70 metres high while the smallest dam will be 50 metres in height.


The project was initially enmeshed in a legal crisis following an allegation by the local content partner, Sunrise Power and Transmission Company Limited, that some forces within the government circles wanted to sideline it.

But the Director of Legal Services in the ministry, Mrs. Adetutu Soetan, had said the federal government was hoping to vacate a $2.3 billion suit filed against the government by Sunrise Power and Transmission Company Limited (SPTCL).

Soetan said the government had through its legal representatives which include the African Law Firm, the ministry of justice and lawyers from the ministry, made its position on the case known to a London tribunal.

https://www.thisdaylive.com/index.php/2019/08/26/fg-seeks-5bn-chinese-loan-for-mambilla-power-project/amp/

This Mambila seems like a never ending story.... a blackhole for collecting loans upandan!

Is it not a better idea to loan out this country give china

lol..these people

I trust buhari to utilize the funds very well. You have the approval of the majority of Nigerians

All this loans now? Who is going to pay for them?

Unborn generation?

I watched a tvc documentary on it last month and I was disappointed to hear DAT obj and Atiku has huge farms and herds of cattle settlements around there

The main reason this country is lacking behind is because, things or project that ought to have done as far back as 15 -20 years ago is just been executed, and not just that, we are now borrowing to execute such project, thereby eating into the future of the younger generation.

Loan again?

How about all those money they recovered

Lolz

Boroboro

The perennial unending cycle of borrowing to loot... I hope this one will be different.

Smiles,you all wanted change!

How much loans are we going to eventually take? The ones taken before, we haven't seen what they were used for.

Nigeria is doomed..... If this loan sails through,
What it means is that Buhari's borrowing for 4 years, would have surpassed that of PDP's 16 years, Abacha's, IBB's and Abdulsalami's regimes borrowing put together.

And illiterates, uninformed and useless youths will say Buhari is their future.

Hmmm this bubu administration will sell niaja soon. Must you borrow? They can't think on a better way to raise funds than borrow? There are better ways to raise funds than looking for this lazy way to raise funds.

naso

another money to chop. Loan indeed.

helinues:
All this loans now? Who is going to pay for them?

Unborn generation?

continue asking and don't act against it.
asking questions you already know the answers，makes you look like a bigot.
Nnamdi Kanu，like a prophet has since many years ago，revealed to all what awaits everyone.
Since Ipob have seen the dangers ahead，coupled with none effect of previous loans on the people of South East (the Igbos)，then demanding the independent of Biafra，many non entities are spitting all manners of trash.
you all gonna be slaves to Chinese soon.
By then Biafra would've become an independent nation. The land of the Rising Sun

Again..........

Why aren't we using coal , or nuclear plants to generate energy they are kinda cheap and will create more energy for a population like Nigeria's

Noted

Loan loan and more loans

I have a massive dislike for Sam's. The water they hold creates a lake that covers lots of land and they also cause flooding when excess water is released.

Wait o, what happened to the recovered Abacha loot and the ones recovered from other politicians? Can't the money be utilized for developmental projects?
Please i need answer

How did we get here? The contract will be executed by Chinese company, the loan paid directly to the company. Heiii, Nigeria has gone to the dogs. Who supervises the job? Who quantifies they materials? Who approves the expenditures? China will soon buy Nigeria

Money that will be looted

Buhari won't be alive when it's time to payback the loan.....soon our new ports would be managed by the Chinese.

Blacks are senseless your truly included