Lawmakers Investigate Gurara II Project Award Amid Procurement Claims

The House of Representatives Committee on Water Resources has commenced a public hearing into alleged procurement violations linked to the proposed Gurara II Hydropower Project in Niger State.

The hearing followed a petition by Abuja Power Company Limited, APCL, which accused the Federal Ministry of Water Resources and Sanitation of breaching procurement and concession laws in the handling of the 360-megawatt project.
Committee

Chairman of the Committee, Sada Soli said the issue falls within the panel’s constitutional oversight responsibilities.
“We 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.

The Gurara II project is a proposed multipurpose dam on the Gurara River axis in Niger State designed to support electricity generation, irrigation and other economic activities.

The site is located off the Buarli Jere Junction road toward Kaluniga and Kampacheng.

Presenting APCL’s case, lead counsel Oluwemi Okunbi, SAN, alleged that the concession or public-private partnership arrangement awarded to CGC Nigeria Limited violated the Public Procurement Act and the Infrastructure Concession Regulatory Commission Act, as well as regulations guiding unsolicited proposals.

Okunbi said APCL initiated the project in 2004 and obtained a Certificate of Occupancy from the Niger State Government, which he said was later revoked following federal intervention.

He added that the company sought court intervention twice to restore the title, resulting in delays and financial losses.

APCL asked the committee to declare the concession to CGC Nigeria Limited unlawful and to restrain the company from further action unless similar terms are offered to APCL.

Alternatively, it sought compensation in line with existing laws and called for a competitive bidding process.

Responding, the Minister of Water Resources and Sanitation, Prof. Joseph Utsev, said Gurara II was conceived as a 360-megawatt multipurpose dam to support power generation, irrigation of about 8,000 hectares, fisheries, flood control and tourism.

He said the ministry engaged three consortiums in 2010 for technical assessments, initially expecting federal funding.

Due to funding constraints, the ministry later adopted a selective procurement process, which led to the award of the project to CGC Nigeria Limited following technical and financial evaluations.

Utsev said APCL emerged after the procurement process had been concluded, claiming prior land allocation and expenses.

He added that efforts at mediation were complicated after APCL went to court.
“As long as this matter is before the court, our hands are tied. If it is withdrawn, we can resolve it amicably,” he said.

Lawmakers raised concerns about due diligence, project ownership, the role of the Niger State Government and whether APCL had proper authorization to operate on the site.

Some cautioned against actions that could interfere with ongoing judicial proceedings.

The committee said it would review submissions, including court documents and correspondence, before deciding on the next steps.

Oduyemi Odumade, Edited By Grace Namiji