With Niger facing an unprecedented energy crisis since the coup d’état that toppled President Mohamed Bazoum on 26 July 2023, contractor China Gezhouba Group Company (CGGC) has decided to suspend construction work on the Kandadji dam on the River Niger, near the capital Niamey. Following this coup, the Economic Community of West African States (ECOWAS), the European Union (EU) and the World Bank imposed financial sanctions against Niger.

#Niger : CHINA GEZHOUBA GROUP annonce l’arrêt de l’ensemble des activités de construction de Barrage de #Kandadji et, de ce fait, la résiliation des contrats des travailleurs. Ce, en raison d’une force majeure liée au contexte sociopolitique actuel du Niger. #NigerCoup pic.twitter.com/6enjBXwDzd

— Ahmadou Atafa (@AhmadouAtafa) August 10, 2023

This situation has made it “impossible for the company to make any payments”, according to CGGC, which launched work on the Kandadji dam in 2019 after several years of delay. “Faced with this force majeure, we have been forced to halt all construction activities for a week and gradually terminate the contracts of local workers”, adds the Wuhan, China-based company.

A multi-purpose dam

However, “we promise to give priority to our redundant workers when recruiting once construction of the Kandadji dam resumes”, promises CGGC in a letter sent to the Labour Inspectorate of the Tillabéri region, where the dam is being built. This stoppage is a real blow for Niger, which is still 75% dependent on its Nigerian neighbour for the supply of electricity to its population and economy.

The World Bank, which has suspended “all operations” in Niger, is the main funder of the Kandadji hydropower project. In 2020, its subsidiary, the International Development Association (IDA), granted a loan of 150 million dollars. The project, estimated to cost €1.2 billion, is also supported by the African Development Bank (AfDB), the Islamic Development Bank (IDB) and the French Development Agency (AFD).

It is one of the largest infrastructure projects currently underway in Niger. It involves the construction of a reservoir 28 m high and 8.7 km wide. With a reservoir covering an area of 2.28 km², the Kandadji dam will ensure that the River Niger reaches low water, thereby reducing the frequency of flooding in the capital Niamey during the rainy season. More importantly, the reservoir will be used to generate electricity from a 130 MW power station with an annual capacity of 629 GWh, representing a 55% increase in national production. Some of the water from the dam will also be used to irrigate 45,000 hectares of farmland, although the project will displace 50,000 people in 24 villages.

Jean Marie Takouleu