HomeIndustry SectorsFinance and PolicyNigeria approves $5bn contract for Mambilla hydropower project

Nigeria approves $5bn contract for Mambilla hydropower project

In West Africa, the government has approved a $5.792 billion contract, which will enable construction work to begin on the Mambilla hydrpower project.

According to the Daily Trust, Minister of Power, Works and Housing, Babatunde Fashola, highlighted that: “Nigeria started talking about it [the project] since 1972; that is about 45 years ago.”

He added: “Several efforts had been made to bring it to reality but I’m happy to announce that this government approved the contract today to joint ventures of Chinese Civil and Engineering Company for the engineering and turn-key contract, including civil and electro-mechanical works for $5.792 billion.”

The minister said construction for the hydropower project should take about 72 months to complete.

Project design of Mambilla hydropower

Fashola explained: “It is designed to deliver 3,050MW of power. The productive output will be a function of water supply, because that is the major source of fuel, a hydroplane. Read more…

“The project requires the construction of four dams, one of them is about 150 meters in height, the immediate two are 70 meters in height and the smallest of them is 50 meters in height.”

He continued: “‎It also includes 700 kilometres of transmission line. It will be in Taraba state in the area called Gembu, and it will unleash the potential that have been reported about Mambila, including agriculture, tourism and energy.

“You will recall that sometimes last year, the Chinese government held a summit in South Africa, essentially what that was about was supporting and partnering with African government to do their infrastructure and also funding the Agurua projects, so this was one of the projects of infrastructure that was submitted there and I think it also had the rail component.”

The minister further revealed that the funding for the project will be sourced from the Chinese government through their Exim bank.

“85% is supposed to be financed by them and 15% is our own counterpart funding. The award now triggers contract negotiations for the financing side and after that are concluded the projects can now start,” he said.


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Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.