The federal government says it is engaging China Energy Engineering Corporation (CEEC) to explore the most practical approach to delivering the Mambilla hydropower project, including the possibility of implementing it in phases.
According to TheCable, Joseph Tegbe, minister of power, spoke during a recent media parley in Abuja to mark his first 100 days in office.
The development follows Nigeria’s recent victory in the arbitration of the Mambilla hydropower project case.
Tegbe said the ministry had engaged the company, also known as Energy China, on the project and directed the contractor to explore options for its delivery.
He said larger hydropower opportunities, including Mambilla, as well as small hydropower projects serving agricultural corridors, formed part of Nigeria’s medium- and long-term electricity strategy.
The minister also said Nigeria’s recent mission to China had secured commitments from Sinomach, China Machinery Engineering Corporation (CMEC), China National Electric Engineering Company (CNEEC), and Chinese financiers to accelerate priority power projects.
Tegbe said the CMEC had reaffirmed its role in the 1.9-gigawatt presidential power initiative (PPI) portfolio, with the first transmission lines scheduled for delivery in the first quarter of 2027.
He said the CNEEC, on its part, had advanced financing arrangements for the $116 million Zungeru evacuation project.
Tegbe said Tebian Electric Apparatus Stock (TBEA) had committed to a proposed $500 million industrial park for power-equipment manufacturing, alongside accelerated work on the PPI and a three-year delivery pathway for the east-west super grid.
He said HengFei Cables had also committed to supplying cables for PPI phase two and proposed establishing a cable assembly plant and training centre in Nigeria.
Tegbe said the initiatives would link infrastructure development with local production and technical capacity, thereby improving electricity supply nationwide.
He said the next phase would focus on deepening grid stabilisation along the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors.
Tegbe said technical audits had also commenced along the Lagos and Abuja corridors to identify weak points and guide investment.
“These first 100 days have laid the groundwork for sustained repair and stabilisation,” he said.
The Mambilla Hydropower Project dispute dates back to a 2003 agreement involving Sunrise Power and the federal government for the construction of a 3,050MW plant in Taraba state under a build, operate, and transfer arrangement.
Years later, specifically on October 10, 2017, Sunrise commenced arbitration against Nigeria, seeking $2.35 billion over an alleged contract breach.
In 2019, representatives of the federal government and Sunrise negotiated a $200 million settlement to end the arbitration.
An agreement signed in January 2020 provided for the payment of the $200 million, while a March 2020 addendum split the payment into two $100 million instalments and exposed Nigeria to an additional $200 million default penalty, alongside interest.
The settlement was never paid. Former President Muhammadu Buhari declined to approve the payment, saying the federal government did not have the $200 million.
Sunrise subsequently pursued further arbitration, seeking payment under the settlement.
On September 17, the International Chamber of Commerce (ICC) in Paris, France, ruled in favour of Nigeria in the $2.35 billion award sought by Sunrise Power over the Mambilla hydropower project.
