Leadership (Abuja)

3 September 2012

Nigeria: FG Passes Vote of No Confidence On Chinese Contractors

The Minister of State for Power, Mr. Darius Ishaku, has disclosed the federal government's discomfort with the integrity of Chinese firms, SINO Hydro and CGGC which are handling the 3500mw, Mambilla Hydro Power Project and the 700mw Zungeru Hydro power project respectively.

The federal government has reasons to doubt the abilities of these companies to successfully handle the projects of these magnitudes, the minister stated.

Ishaku stated this during a meeting with the Chinese Ambassador, Mr. Beng Boqing, at the weekend, in Abuja, where he urged the Chinese Government to attest to the competence and integrity of their companies doing businesses in Nigeria, particularly in the power sector.

Ishaku told the Chinese Ambassador that "government observed with concern the progress of work on the 3500mw, Mambilla Hydro Power Project and the 700mw Zungeru Hydro Power being handled by SINO Hydro and CGGC respectively.

"The guarantee became important as a result of the importance the government places on the two dams in shoring up power supply."

Ishaku expressed worry that the individual company could not handle the projects alone because of their sizes, adding that government intends to pair or subcontract some parts of the projects so that the objectives for the investment can be realised within the expected time frame.

In his response, the Chinese Ambassador who vouched for his country's entities, emphasised that these companies were as famous in China as they were in Nigeria in areas of hydro power technology.

He noted that Chinese Government appreciated the central role of stable electric power in Nigeria's quest to be a leading nation.

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