The Federal Government moved at the weekend to spin off parts of the Mambilla and Zungeru power projects being handled by two Chinese companies because of what a minister said were concerns over competence of the firms involved But the Chinese government said any attempt to take away any parts of the two projects from the companies would amount to a breach of contract as the firms are competent to do the job.
Mambilla Hydro Power Project, handled by SINO Hydro, is expected to generate 3500 megawatts of electricity while the Zungeru Hydro Power has a 700mw capacity, being executed by CGGC. They are among the nation's long-running power projects that failed to materialise for many years despite guzzling billions of naira.
At a meeting weekend, Minister of State for Power, Mr. Darius Ishaku, told the Chinese Ambassador to Nigeria, Mr. Beng Boqing, that government was concerned that the two projects were not moving fast enough because they were "too large" for the Chinese companies.
A statement by spokesman for the Power Ministry, Greyne Anosike, quoted the minister as saying the "two projects in particular were too large that no single company can execute each of them alone and deliver at a stipulated timeline."
Ishaku said the Federal Government was planning to "pair or subcontract some parts of the projects so that the objectives for the investment is realised within the expected time frame."
He said the Federal Government is not comfortable with the companies and has reasons to doubt their abilities, and asked the Chinese ambassador to give a guarantee that the two firms could deliver.
Ishaku said Nigeria cancelled the agreement it entered into with CGGC when it became obvious that a single company could not go it alone and that the Federal Government had called on CGGC to pair with SINO among other companies to speed up work on the Mambilla project.
But Ambassador Beng vouched for the competence of the companies, which he said were as famous in China as they are in Nigeria in hydro power technology.
"Chinese Government appreciates the central role stability in electric power will portend for Nigeria in her quest to be a leading nation and emphasised that Chinese expertise in hydro power construction is only one of the Chinese entities working in various sectors of the Nigeria economy to consolidate China-Nigeria 40 years of friendship," he said.
"Chinese hydro power companies especially CGGC and SINO are competent, popular and competitive in China and had played eminent roles in the industrial development of Nigeria."
He said it was wrong for the country to work out on an agreement without consulting the other parties.
"Agreement is an agreement and its sanctity involved be sacred," the Ambassador said.
Daily Trust