This followed the adoption of a motion by Sen. Gabriel Susuwam (PDP-Benue) and Sen. Abdullahi Yahaya (PDP-Kebbi) at Wednesday’s plenary.
The sponsors of the motion explained that it will be unacceptable to concession the power plant without ensuring accountability and proper management of unsettled external loans tied to the project.
Presenting the motion, tagged: “The Need for Senate Intervention in the Ongoing Bid to Concession Zungeru Hydroelectric Power Plant in Niger, Abdullahi said the plant was the second largest hydroelectric plant in Niger, after Kanji Hydropower station.
He said the contract was originally awarded in 2013 in the sum of 1.3 billion dollars.
According to him, apart from the huge loan secured by the Federal Government of Nigeria from Exim Bank to fund the construction, the National Assembly has since the commencement of construction work on the plant approved billions of naira annually.
He noted that over N43billion was allocated to the project in the 2022 budget and another N76.5 billion was proposed by the executive in 2023 budget.
Furthermore, he said that the project was expected to have been completed within 60 months from the date of execution of the contract in 2013, but several factors have threatened the speedy completion of the project.
He said the Senate’s intervention was based on the need to ensure accountability for the huge annual budgetary allocations made to the project over the years, especially on the issue of managing unsettled external loans tied to the project.
The lawmaker said there was a need to establish whether the proposed concession of the Zungeru plant was an exercise that would ensure that government get the deserved value for funds expended and that community-related issues do not arise.
His stance was supported by other lawmakers including the Senate President Ahmad Lawan.
The Red Chamber adopted two resolutions and mandated its Committee on Power to investigate the circumstances under which the Zungeru Hydroelectric Power Plant is being concessioned. It also urged the National Council on Privatization and the BPE to suspend indefinitely the proposed concession.
Meanwhile, the Senate has approved the promissory note program and bond issuance to settle outstanding claims and liabilities in the sum of N21bn to Yobe and Taraba states as refunds for the completion of road projects in their states.