There is no budgetary allocation for the construction of the 3, 050 megawatts Mambilla hydropower project, according to the Power, Works and Housing Minister, Babatunde Fashola.
There have been reports that the loan negotiations for the project had stalled because of the plans to use the $600m (N219bn) from the project for an alleged pet project.
However, Fashola on Sunday noted that “Nothing is further from the truth than the claim that the loan negotiations have stalled since 2017 because of an attempt to utilise $600m (equivalent of N219bn) from the 3,050MW hydropower project for a ‘pet project’ not hitherto considered by the Federal Executive Council.
“There is currently no budgetary provision or cash provision of $600m or the N219bn in any budget of the Federal Government for the Mambila project. Therefore you cannot attempt to divert what does not exist.”
He added: “For the avoidance of doubt, the China Exim Bank disburse money to specific projects and on conclusion of negotiations, the loan will be devoted to the construction of the Mambila Power Project, which has been on the drawing board for close to 40 years before the advent of the Buhari administration which is now working assiduously to get the project off the ground.”