Monday, November 26, 2018
Advertisement

Fashola: Mambilla power plant will cost $5.72b

Fashola: Mambilla power plant will cost $5.72b
November 13
09:45 2018
Advertisement

Nigeria’s 3, 050 megawatts Mambilla Power Plant will cost $5.72 billion, Babatunde Fashola, minister of power, works and housing, has said.

He said arrangements were at an advanced stage to secure the funds from the Chinese government in the form of loans.

Fashola said this at a ceremony to mark his three years in office.

He added that work on the Mambilla Power Plant, which had suffered several setbacks for over 40 years, is set to commence from early 2019.

According to Fashola, the federal executive council (FEC) has approved the project.

He said President Muhammadu Buhari is committed to ensuring the urgent commencement of the project, which is expected to be completed within 60 months.

On the level of development of the project, Fashola said, “the progress is that for the first time in over 40 years the federal government has now signed an engineering and procurement contract. President Buhari has made that possible.

“All the companies that were fighting themselves and going to court when we came are out of court. We have a contract, a joint venture; we created that joint venture; we have a contract with them we have signed. FEC has approved the project; it is going to cost $5.72 billion.”

He explained that the choice of the Chinese company, CGCC, to handle the project, was because it built China’s Gorges Dam which is similar to the Mambilla power plant.

“They have the technology; they have done it before; no need to reinvent the wheel. We will take a loan; we are now trying to negotiate the final tranche of the loan,’’  Fashola said.

“The Nigerian government is supposed to provide 15 per cent of the total cost of the project as its counterpart funding.

“You don’t budget all of the money at once and even if the loan was approved today, you wouldn’t draw it all down because it is a minimum of 60 months construction time, assuming that there are no hitches. That is where we are.”

RECEIVE ALERTS FROM THECABLE

BBM CHANNEL C0038F78B
WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2018 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement
Advertisement

Exchange Rates

November 16, 2018USDGBPEUR
INTERBANK306397354
LAGOS359475418
KANO359476420
PH360476420
ABUJA359478419
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement
Advertisement