FG Seeks $5bn Chinese Loan For Mambilla Power Project

August 26, 2019 Wisdom Nwedene Breaking News, Hot News, National, Politics 0

Nigeria has formally requested for loan from China Exim Bank to build the 3,050 megawatts (MW) Mambilla hydropower generation plant, whose construction was billed to gulp $5.8 billion, THISDAY has learnt.

It was gathered from the officials of the Ministry of Power during a presentation to the new Minister of Power, Mr. Saleh Mamman, and the Minister of State, Mr. Goddy Jedy-Agba, that the Ministry of Finance had applied to China for the loan.

Under the contract financing arrangements, EXIM is to provide $4.93 billion in loan, representing 85 per cent of the capital funding, for the project while Nigeria will provide the balance of $870 million or 15 per cent of the cost outlay.

The Federal Executive Council (FEC) had on August 30, 2017 approved the award of contract for the project to China Gezhouba Corporation, Sinohydro Corporation Limited and CGOC Group Limited.

In November 2017, the then Minister of Works, Housing and Power, Mr. Babatunde Fashola (SAN), signed the contract.

During a state visit to China on September 7, 2018, President Muhammadu Buhari was told by the President of CGCC, the construction company, Prof. Lyu Ze Xiang, that “our target is to commence the project early next year (2019).”

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