Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Mambilla Power project is a 3.05GW hydroelectric facility being developed on the Dongo River near Baruf, in Kakara Village of Taraba State, Nigeria. The project is being undertaken by Nigeria's Federal Ministry of Power and is expected to go into full commercial operation in 2030. When completed Mambilla will be Nigeria's biggest power plant, producing approximately 5.457 billion kWh of electricity a year.
Objectives
To increase electricity access of the country; stimulate economic growth development and enhancement of living standards of millions of Nigerians and neighbouring countries, in particular increase power export to Niger, Togo, Benin and Chad. Increase Nigeria's current electricity generation by 30% and the country's baseload electricity generation capacity, hence improving grid stability. The project will be a major source of additional power generation capacity that will make Nigeria meet its 90% electricity access rate by year 2030, as well as increase renewable energy use to 30% by year 2030.
Strategic Importance
Strategic project for Nigeria's energy security and regional power export capabilities. The project will provide substantial baseload capacity to support industrial growth.
Technical Specifications
Technology & Design
Hydroelectric facility with pumped storage capability to improve system flexibility.
Capacity & Size
3.05 GW installed capacity, 5.457 billion kWh annual generation
Technical Details
Hydroelectric power plant with 3.05 GW capacity. The project will involve construction of four dams and two underground powerhouses with 12 turbine generator units.
Development, Implementation & Financial Details
Development Timeline
Project structuring to be completed by 2024, financial close targeted for 2025.
Latest Implementation Updates
UPDATED2025-01-20: Former President Buhari expected to testify in ICC arbitration over breaches of Mambilla contract – https://businessday.ng/news/article/timeline-of-the-6bn-mambilla-power-court-case/
2025-01-24: Key witnesses failed to appear in ICC hearings, delaying proceedings – https://www.thecable.ng/exclusive-setback-hits-sunrise-power-in-2-35bn-mambilla-arbitration-as-key-witnesses-fail-to-show-up/
2025-01-24 — ICC arbitration setback: key witnesses fail to appear, delaying proceedings; legal overhang continues to gate technical progress. [https://www.thecable.ng/exclusive-setback-hits-sunrise-power-in-2-35bn-mambilla-arbitration-as-key-witnesses-fail-to-show-up/]
Financing Structure
The project is expected to be financed through a combination of public funding and commercial loans, with potential for private sector participation.
Capital Structure
60% debt, 40% equity
Project Timeline
Start Date
January 2023
Expected Completion
December 2030
Development Timeline
Project structuring to be completed by 2024, financial close targeted for 2025.
Project Status History
Status 2020
Structuring
Status 2022
Structuring
Status 2024
Structuring
Additional Project Details
Preparation Funding Gap
USD 25.00M
Construction Timeline
Construction expected to take 5-7 years from financial close.
Legal & Financial Advisors
To be appointed
Market Analysis
Market Analysis
Nigeria faces significant electricity supply shortages, with demand growth projected at 7-8% annually.
Market Demand
Current demand significantly exceeds supply. The project will help close the supply gap and support economic growth.
Key Stakeholders
Project Sponsor
Federal Ministry of Power, Nigeria
Key Parties
Ministry of Power, Federal Republic of Nigeria; Transmission Company of Nigeria
Investors
Federal Government of Nigeria, potential international development finance institutions
Contractors & Operators
To be determined through competitive bidding process
Risk Assessment
General Risk Assessment
Key risks include financing challenges, potential construction delays, environmental impacts, and political risks.
Regulatory Risks
Nigeria has established regulatory framework for hydropower development, though some aspects may require updating.
Impact Assessment
Environmental Impact
Environmental impact assessments ongoing, with focus on mitigation of impacts on local ecosystems and downstream flow regimes.
Social Impact
Project will create approximately 50,000 jobs during construction and support economic development in the region.
Investment Opportunities
Private Sector Opportunities
The project is estimated to cost USD 5.8 billion and will generate up to 50,000 local jobs during the construction phase. A key action being worked upon is to streamline the Mambilla Hydroelectric Power Project (MHEPP) procurement process in favor of women owned SMEs.
Next Steps & Agreements
Next Steps
Complete project structuring, finalize financing arrangements, begin procurement process
Offtake Agreements
PPAs to be established with Nigerian Bulk Electricity Trading Company and potential regional off-takers.
Contact Information
Ministry of Power, Federal Republic of Nigeria
