The government of Nigeria has announced the award of a $5.8 billion contract to build what will be the largest power plant in the country.
The 3,050-megawatt Mambila hydroelectric power project in the state of Taraba will be delivered by a consortium of Chinese state-owned construction firms.
The megaproject will feature four dams between 50 and 150 meters tall, and take six years to complete, the Minister of Power, Works and Housing, Babatunde Fashola, told reporters in Abuja.
The Chinese Export-Import Bank will finance 85% of the development, with the Nigerian government contributing 15%. Minister Fashola claimed the project will deliver far-reaching benefits.
"(Mambila) will have a transformational effect on all of Nigeria's socio-economic development," he said through a government spokesman, "It will have considerable positive impact on electricity supply nationwide, productivity, employment, tourism, technology transfer, rural development, irrigation, agriculture and food production."
Power shortage
Despite being one of the largest economies in Africa, over 40% of Nigerians live without access to electricity, according to World Bank figures.
Hydropower, one of the cleanest and cheapest forms of power, is a key target for development as Nigeria is currently exploiting just a fraction of its potential resources.
The country is also seeking to shift away from oil dependency, after plummeting oil prices triggered a recession.The clear need for the Mambila project could make it more likely to succeed, some analysts believe.
"The prospects of project implementation starting are perhaps stronger than in previous decades," says Elizabeth Donnelly, deputy head of the Africa Programme at UK think tank Chatham House. "Nigeria continues, albeit slowly, with its complex power sector reform and badly needs to generate - and more importantly distribute - more power for its 180 million people."
"Hydroelectricity is an important part of this mix, particularly for rural electrification."
Chinese interests
The power plant is one of several major Chinese investments in Nigeria, including multiple railway projects. In January, Chinese Foreign Affairs Minister Wang Yi announced plans to invest a further $40 billion in Nigeria.
