By Nathaniel Zacchaeus, Abuja
The Minister of Power, Adebayo Adelabu, has said the absence of the Mambilla Power Project in the ministry’s 2024 Budget was deliberate.
Adelabu gave the clarification when he appeared before a Joint National Assembly Committee on Power which has Senator Enyinnaya Abaribe as Chairman.
He said the Mambilla Project was enmeshed in a serious legal tussle.
It will be recalled that Sunrise Power and Transmission Company Limited (SPTCL) had on October 10, 2017, dragged the Federal Government to the International Court of Arbitration administered by the International Chamber of Commerce (ICC), Paris, France for “breach of contract”
The case was about a 2003 agreement to construct the 3,050MW plant in Mambilla, Taraba State, on a ‘build’, operate, and transfer” basis for $6 billion.
The Federal Government in its defence insisted that the contract award was irregular and did not pass through due process.
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The Minister of Power told the federal lawmakers that he deliberately removed the Mambilla Project from his Ministry 2024 Budget.
He said, “For Mambilla, there is no provision for it in 2024. It isn’t a mistake. It is deliberate.
It is under international arbitration. Until it is resolved, we can’t do anything about it.”
Speaking on the Zungeru Hydro Power Project, the Minister of Power said it was almost completed.
“The hydropower plant is 99.8 per cent ready. It is almost completed and we intend to start operation this year and commence evacuation to the national grid.
“Immediately concessionary fees are paid, we will start full operation. So, we don’t have a problem with Zungeru.”
Located in Niger State, the hydroelectricity Power Plant is a 700MegaWatt power station.
The Minister explained to the lawmakers that the biggest challenge facing the power sector is not generation, but distribution as he noted that substantial power generated is lost in the process of distribution.
He attributed the problem to the distance between the spot of generation to the distribution network.
He maintained that the facilities of the existing power distribution companies were obsolete and needed to be upgraded.
“In the process of transmission to distribution, we lose power because of the distance of travel.
You lose close to 40% when you move from the area of transmission to distribution.
“The existing Distribution Companies, (DISCOS) are not making new investments to change their old facilities to new ones. When you lose 40 per cent to evacuation, it is a big loss.
“So we need to have enormous investment in the distribution chain. What we are trying to do going forward, is to expand our transmission facilities. Within the next two years, there must be improvement.”
Giving further explanation on the predicament over the distribution of power, Adelabu restated his call for the unbundling of the distribution companies.
“The Government can take responsibility for transmission because it is fully owned. But when it comes to distribution, the states must be involved.
“The DISCOS must be closely monitored by states. I propose that they must be unbundled. The states must be involved when it comes to distribution. Even when it comes to transmission lines, the states are well placed to secure the right of ways for us.”
Chairman of the Senate Committee on Power, Senator E. Abaribe expressed strong reservations about the off-grid power that is given free as he insisted that such ventures are not sustainable.
In his response, the Minister of Power said his Ministry was making conscious efforts to ensure the sustainability of the project.
“We have taken steps to ensure that the projects aren’t flash in the pan, that they are sustainable. Going forward, we are going to install batteries that have a life span of a minimum of 8 years. Most of the communities see it as Corporate Social Responsibility and as free power. But we are telling them that isn’t sustainable.
“We are going to involve a private sector operator to ensure that they pay a token. If the community chooses to maintain it themselves they can organise themselves into a team to ensure that the technology is sustained.
“The second aspect is that the off-grid we are going to use going forward will be embedded into the existing DISCOs. If you are connected to the Discos in your areas, they can allow you to use their light to recharge your batteries.”
