The Federal Government has reopened discussions on the Mambilla Hydropower Project in Taraba State, with China Energy Engineering Corporation, also known as Energy China, assessing options for its delivery.
Minister of Power, Joseph Tegbe, disclosed this in Abuja during a briefing marking his first 100 days in office.
Tegbe said Energy China had been directed to determine the most practical implementation model, including the possibility of executing the 3,050-megawatt project in phases.
The development follows an International Chamber of Commerce tribunal ruling in Paris on September 17, 2026, which rejected claims by Sunrise Power and Transmission Company Limited against Nigeria over disputes connected with the project.
The Mambilla scheme originated from a 2003 agreement for a 3,050MW hydroelectric plant under a build-operate-transfer arrangement.
Sunrise commenced arbitration against Nigeria on October 10, 2017. A proposed $200 million settlement followed in 2019, with a January 2020 agreement providing for payment and a March 2020 addendum splitting the sum into two $100 million instalments. The addendum also provided for a further $200 million default liability, alongside interest.
The settlement was not implemented, leading to further arbitration.
The latest proceedings included a $680 million settlement-related claim and another exceeding $2.7 billion in compensation and interest. The tribunal rejected the claims.
The dispute had previously affected government planning. In December 2023, then-Power Minister Adebayo Adelabu said Mambilla was excluded from the proposed 2024 budget because of the unresolved legal issues.
READ ALSO: Nigeria Wins $2.35bn Sunrise Arbitration Battle Over Mambilla Power Project
With the arbitration now concluded, Tegbe said the government was examining how to move the project towards implementation.
He said large hydropower schemes and smaller projects supporting agricultural corridors would form part of Nigeria’s medium- and long-term electricity strategy.
Tegbe also disclosed commitments from Chinese companies and financiers on other priority projects.
China Machinery Engineering Corporation, he said, had reaffirmed its role in the 1.9-gigawatt Presidential Power Initiative, with the first transmission lines expected in the first quarter of 2027.
China National Electric Engineering Company had also advanced financing for the $116 million Zungeru power evacuation project, while Tebian Electric Apparatus Stock committed to a proposed $500 million power-equipment manufacturing industrial park.
HengFei Cables, he added, would supply cables for the second phase of the Presidential Power Initiative and was considering a cable assembly plant and training centre in Nigeria.
On transmission, Tegbe said the ministry would prioritize the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors, with technical audits underway along the Lagos and Abuja routes.
“These first 100 days have laid the groundwork for sustained repair and stabilization,” he said.
The government is yet to announce a construction timetable or financing structure for the Mambilla project.