Mambila: We Only Received Instructions To Conduct Value Engineering, NSIA Clarifies

The Nigerian Sovereign Investment Authority has said that it has received instructions to conduct value engineering on the 1,525 megawatts Mambilla hydropower project.

The Head of Communications, NSIA, Titilayo Olubiyi, said this while giving clarification on a media report that the Federal Government had it to source $200m for settlement of International Court of Arbitration in Paris award in favour of the Chinese firm, Sunrise Power and Transmission Company Limited.

The report had stated that the Federal Government through the Ministry of Power had agreed to pay the sum and had mandated NSIA to work out measures for settling the debt.

The $200m settlement offer was to compensate Sunrise Power for the unlawful termination of the contract for the 1,525 megawatts Mambilla hydropower project and the re-award of the same to another Chinese firm.

It further said that based on the terms of settlement, Sunrise is expected relinquish all claims to the project once the requirements contained in the agreement with the Federal Government were settled.

But findings by THE WHISTLER revealed that the NSIA’s mandate under the PIDF in relation to the Mambilla project is to conduct Value Engineering .

The NSIA Spokesman while confirming this to THE WHISTLER said, “We have received no such instructions. The only instruction we have is to conduct value engineering.”

Findings by this website revealed that VE is a best-practice approach for validating the project as it ensures that notable challenges on the project can be pre-determined and addressed in advance.

It also fosters cost reduction, improves project performance as well as efficiency, and enhances quality requirements.

It was gathered that the VE is being employed to improve the value of the project by examining the function of each item or element and its associated cost.

By weighing the cost/benefit ratio, THE WHISTLER understands that the development team can make suggestions for alternate construction methods, designs, or materials that improve the value of the project.

Investigations further revealed that there is no directive from the Presidency or the Federal Government instructing the Authority to source $200m for settlement of a judgement debt award in favour of any foreign firm connected to the Mambilla project.

The Authority had made several disclosures on its role in the Mambilla project in its Annual Reports and also online.

As a committed investment institution of the federation, the Authority periodically updates stakeholders on the state of affairs relating to all its projects since they are of national priority.