The Chinese government has asked the federal government to settle the legal dispute over the $5.8 billion Mambilla power project or it would not provide funds for the project.

The China Gezhouba Group Corporation of China (CGGCC) and China Geo-Engineering Group Corporation (CGGC) had in 2006 won the bid for a joint venture to execute the hydropower project with a proposed capacity of 3,050 megawatts.

But in 2003, the Federal Ministry of Power had awarded the build, operate and transfer (BOT) contract of the project to Sunrise Power and Transmission Company Limited (SPTCL), a local content partner.

In November 2012, a general project execution agreement (GPEA) was signed with SPTCL.

According to The Cable, the power ministry in November 2017 signed another engineering, procurement and construction (EPC) contract with Sinohhydro Corporation of China, CGGCC and CGGC to form a joint venture for the execution of the project, excluding SPTCL.

As a result, SPTCL filed a suit against the federal government and its Chinese partners at the International Chamber of Commerce (ICC) in Paris, France, over an alleged breach of contract.

The Chief Executive Officer of SPTCL, Leno Adesanya, claimed the company had spent millions of dollars with financial and legal consultants to raise about $6 billion for the execution of the project, yet the company has suffered a lot over the years “through improper administrative interruptions and interventions”.

Due to the ongoing legal tussle, Nigeria risks $2.3 billion fine over the proposed 3,050-megawatts facility.

In a letter dated September 18 and addressed to the Minister of Power,  Mr. Sale Mamman, the Project Manager for the Chinese partners, He Yongjun, said the China Exim Bank, which is expected to provide 85 per cent of the joint funding, will not finance the project until the legal issues are resolved.

“The Chinese government is showing a positive attitude towards the Mambilla Project. However, according to financing policy of China, the Export-Import Bank of China cannot provide loans to a project with legal disputes, which is the main reason why the project has not entered into substantive financing negotiations so far,” Yongjun said.

“On 5th September, 2019, Yang Jiechi, Special Representative of President Xi Jinping informed the Nigerian President and Commander-in-Chief, President Muhammadu Buhari,  that unless the legal dispute is resolved, conforming out of court settlement funding for the loan will not be accessed.

“A meeting shall be organised by the Ministry of Power for negotiation between the relevant authorities of the Nigeria government, SUNRISE, and the members of the EPC Contractor JV to resolve the legal disputes through amicable negotiations so as to let the plaintiff withdraw the lawsuit.

“Should such negotiation fail, if the Nigeria government considers that the arbitration result is beneficial to the Nigeria government, it is suggested that the judicial department of Nigeria (Attorney General) issue a formal legal paper to the Chinese authority confirming that  the legal dispute has no effect on the Mambilla Project.

“And the Nigeria government requests China to start project financing negotiation as soon as possible, financing of the Mambilla Project cannot be stagnant due to legal disputes,” it added.

Source: https://www.thisdaylive.com/index.php/2019/11/11/china-threatens-to-suspend-mambilla-power-plant-funding-over-legal-dispute/

And this is how electricity crisis will linger on.

another one again(paid is still there) I give up on Nigeria

I just checked the spiritual boundary adjustment nigeria has....we dey share fence with hell...this country was built on self deceit.

Lol..make every man go find renewable energy and source his own means..

Anything yet on the Siemens deal?

Hope no be so so story again

Zoo country

Same old story.

In as much as I don’t trust any Chinese company I blame the Nigeria company the contract was awarded to For not dropping a single stone at the site since 2013 when the contract was awarded to them. Nigeria is a joke if this is not settled amicably for the Interest of the country at large!!

Still looking for a singular achievement by this present government.

But how can a whole federal government default on a contract agreement as huge as this? Are people in charge if these projects? Some pple are definitely pocketing the money just as Obanikoro and his sons pocketed the billions allocated for the nation's security.
Yet, nothing was done and the son recently became a Fed House of Rep. Member.

All Nigerians citizens, Politicians and their supposed leaders are bunch of miscreants!

The thing is we don't deserve democracy. Military regime wasn't as bad as this nonsense we call democracy.

Abeg who wan comment?....u can have my space.....Naija matter don tire me and no glimpse of hope

Seems this country is cursed....


Our leaders just sign anything for the camera without thinking about legal binding as well as understanding the content.

Naija

walahi no hope 4 Nigeria

Nigeria is not working again

Why now,pls Power minister should fine tune these problems.
We can't afford to lose mambilla,the propensity is too great than us allow us let this go down the well.

Naija oo

A country that can never get anything right no matter how little

One day we'll wake up and discover that our flag, coat of arms, police uniform, nigerian army, nig. navy etc have been changed from FRN to PRC...

FRN(Federal Repulic of Nig.) to PRC(Peoples Republic of China)
if you know, you know.

6billion$ for 3020 megawatts power plant.... Yahoo yahoo Chinese companies. I nor blame them. Them see country wey nor dey accountable thats why

chai...what a country

Officialgarri:
And this is how electricity crisis will linger on.

This is how previous administrations ran Nigeria. Many opaque contracts meant to siphon money rather than develop Nigeria.

Ajaokuta
Malabu oil deal
Mambila power
Lagos/Ibadan expressway.
The gas contract with the shadowy Irish company, Etc, etc.

I think we should look into coal fired power plants,enough of these going green,we are too young to be matching ourselves with Japan,Germany.
Even USA and China get more than 40℅ of their power from coal.

mamaafrik:
I think we should look into coal fired power plants,enough of these going green,we are too young to be matching ourselves with Japan,Germany.
Even USA and China get more than 40℅ of their power from coal.

Hydo power is the standard. It is still the best. No radioactive waste or carbon emissions as in the case of coal.

Imagine being fined $2.8b. If we had such money, we wouldn't need China

Blue3k2:


Source: https://www.thisdaylive.com/index.php/2019/11/11/china-threatens-to-suspend-mambilla-power-plant-funding-over-legal-dispute/

Generator importers are working very very hard wallahi.