Gurara II Project: Withdraw From Court, Let’s Settle As Family, FG Tells Firm

Minister of Water Resources and Sanitation, Prof. Joseph Utsev, has called on the Abuja Power Company Limited (APCL) to withdraw the court case it instituted against the federal government over the proposed Gurara II Hydropower Project in Niger state for amicable resolution.

Utsev stated this during a House of Representatives hearing on a petition arising from a dispute between APCL and the ministry over the proposed Gurara II Hydropower Project in Niger State.

He stated that in 2010, the ministry engaged three consortia to conduct technical assessments of the project, with the expectation that it would be funded by the Federal Government.

Utsev, however, said due to funding constraints, the ministry later adopted a selective procurement process and awarded the project to CGC Nigeria Limited based on technical and financial evaluations.

The minister said APCL only emerged after the project had been procured, claiming that prior land allocation and incurred expenses had been incurred.

He added that upon assuming office, he invited both APCL and the Chinese firm to discuss the matter and advised them to reach an agreement on compensation.

Utsev said the situation became complicated when APCL filed a case in court, stressing that the ministry could not engage in settlement talks while the matter remained under litigation.

“So long as this issue is in court, our hands are tied. If it is withdrawn from court, then we can sit as a family and resolve it amicably,” the minister said.

Presenting the petition, APCL’s lead counsel, Oluwemi Okunbi, SAN, told the committee that the dispute centres on the Gurara II project, which he said was initiated by his client as far back as 2004.

He alleged that APCL secured a Certificate of Occupancy (C of O) from the Niger State Government to develop the project, but the title was later revoked following alleged interventions by federal officials aimed at transferring the project to another company.

According to him, APCL was compelled to approach the courts on two separate occasions to restore the revoked title, a process he said caused significant delays to the project.

Okunbi said APCL repeatedly sought an amicable resolution with the ministry and other relevant authorities, including the Office of the Attorney-General of the Federation, stressing that the matter was of national importance and should not be prolonged through litigation.

In its petition, APCL urged the committee to note that the concession or public-private partnership (PPP) arrangement allegedly awarded to a Chinese firm, CGC Nigeria Limited, violated the Public Procurement Act, the Infrastructure Concession Regulatory Commission (ICRC) Act and regulations governing unsolicited proposals.

Secondly, APCL requested that CGC Nigeria Limited be restrained from taking any further steps on the project unless equivalent terms were first offered to APCL, as the original project initiator.

In the alternative, the company requested that if the ministry opted not to proceed with APCL’s unsolicited proposal, APCL should be adequately compensated in line with extant laws, and that the project be advertised and procured through a competitive bidding process.

Some lawmakers expressed concerns over due diligence, project ownership, the role of the Niger State Government, and whether APCL acted as a volunteer or with lawful authority when it commenced work on the site.

However, others cautioned that the committee must avoid delving into matters still before the courts, warning that doing so could prejudice ongoing judicial proceedings.

The committee is expected to review all submissions, including court documents and correspondence, before determining the next steps in resolving the long-running dispute over the Gurara II Hydropower Project.