The House of Representatives Committee on Water Resources, has commenced a public hearing to probe alleged procurement breaches surrounding the concession of the proposed Gurara II Hydropower Project in Niger State.
The Gurara II Hydropower Project is a proposed multipurpose dam on the Gurara River axis in Niger State, designed to support power generation, irrigation and other socio-economic activities.
The hearing was sequel to a petition filed by Abuja Power Company Limited (APCL), which accused the Federal Ministry of Water Resources and Sanitation of violating procurement and concession laws in the handling of the 360-megawatt hydropower project.
Chairman of the committee, Rep. Sada Soli, explained that the matter fell within the committee’s constitutional oversight mandate, adding that lawmakers were obligated to examine allegations of non-compliance with extant laws governing public infrastructure projects.
“The committee received a formal petition from Abuja Power Company Limited alleging breaches in the concession process of the Gurara II Hydropower Project, and we are here to hear from all parties in the interest of transparency and accountability,” Soli said.
Speaking at the hearing, APCL, represented by its lead counsel, Oluwemi Okunbi, SAN, alleged that the concession or public-private partnership arrangement purportedly awarded to CGC Nigeria Limited foul provisions of the Public Procurement Act, the Infrastructure Concession Regulatory Commission (ICRC) Act and regulations guiding unsolicited proposals.
He told the committee that APCL initiated the Gurara II project as far back as 2004 and lawfully obtained a Certificate of Occupancy for the project site from the Niger State Government, which he said was later revoked following federal intervention.
According to him, APCL was forced to seek judicial redress twice to reclaim the revoked title, leading to prolonged delays and financial losses.
Okunbi said APCL had consistently pursued an amicable resolution by engaging the Ministry of Water Resources and Sanitation and the Office of the Attorney-General of the Federation, but was compelled to petition the National Assembly after those efforts failed.
He urged the committee to declare the alleged concession to CGC Nigeria Limited unlawful and to restrain the firm from further action on the project unless APCL is offered the same terms as the original project initiator.
He requested compensation in line with existing laws if its unsolicited proposal is rejected and called for a transparent competitive bidding process.
The Minister of Water Resources and Sanitation, Prof. Joseph Utsev, told the committee that the Gurara II project is a proposed 360-megawatt multipurpose dam intended to support power generation, irrigation of about 8,000 hectares of farmland, fisheries development, flood control and tourism.
He said the ministry initially engaged three consortiums in 2010 for technical assessments, with the expectation of federal funding.
He explained that funding constraints later compelled the ministry to adopt a selective procurement process, which eventually resulted in the award of the project to CGC Nigeria Limited after technical and financial evaluations.
He said APCL only emerged after the procurement process had been concluded, claiming prior land allocation and expenses allegedly incurred on the project.
He disclosed that he convened meetings between both parties upon assuming office and encouraged an amicable settlement, including discussions on compensation, but noted that the matter became complicated when APCL instituted legal action.
“As long as this matter is before the court, our hands are tied. If it is withdrawn from court, we can sit as a family and resolve it amicably,” he said.
Lawmakers raised concerns over due diligence, ownership of the project, the role of the Niger State Government, and whether APCL undertook activities on the site with proper authorisation.
