Home Global Ties Niger’s Chinese-made dam stopped work citing a lack of funds

Niger’s Chinese-made dam stopped work citing a lack of funds

August 12, 2023

(4 minutes read)

The construction of the US$800 million Kandadji hydroelectric project in Niger has been halted by the Chinese contractor Gezhouba Group

The construction of the US$800 million Kandadji hydroelectric project in Niger has been halted by the Chinese contractor Gezhouba Group. The company’s claim is that most of its funds have been frozen due to the current sanctions after the coup. In a recent communication, the company said that it would halt operations and would lay off its workforce. However, the company assured the re-deployment of workers if finances are secured.

The dam, upon completion, is expected to boost the country’s grid by 50%. Niger’s population has experienced a lack of electricity with only 4.3 million people having access to energy. More than 90% of Niger’s population uses wood as a source of energy.

The recent sanctions by the regional Economic Community of West African States (ECOWAS) have crippled Niger’s economy. Donor countries and other multinational organizations have cut off their links. The dam, when completed, was also expected to help control the Niger River from flooding, and water in the reservoir can make downstream irrigation possible during the prolonged dry seasons.

Dam’s construction was going on since 1970’s and was expected to be completed in March 2026. The generation capacity of the dam is over 130MW of electricity that would be distributed both internally and in the neighboring countries. As reported by www.trendsnafrica.com, the neighbor Nigeria has cut off its electricity supply to Niger, bringing the trouble-torn country into the grip of massive power cuts.

The Economic Community of West African States (ECOWAS), led by Nigerian President Bola Tinubu, imposed sanctions to pressurize Niger to reinstate democratically elected President Mohamed Bazoum on July 26. He also issued a one-week ultimatum to restore constitutional order and the suspension of financial transactions with Niger. ECOWAS also decreed a freeze on all service transactions, that are having a severe impact on the Sahel country.

Niger is a power deficit country even during normal times. It heavily depends on the Nigerian grid, where the Nigerian Electricity Company. Nigelec- Niger’s sole supplier- buys 70% of the electricity it supplies in Niger. With the blockade, the Nigelec now has to rely solely on its meager local production and rechargeable solar mowers.