FG Concessions the $13 Billion Zungeru Hydro Power Plant in Niger State
The $13 billion Zungeru Hydro Power Plant in Niger state has been concessioned by the federal government to mainstream energy solution limited.
The power plant which is the second largest to be completed in the past decade, is to contribute 800 megawatts of electricity into the national grid.
It will also raise to 27 the number of power plants in the country.
Acting Director General of the Bureau of Public Enterprises, Ignatius Ayewolu presented the certificate of concession to officials of mainstream energy solutions limited at a ceremony in Abuja.
He explained that the concessioning of the power plant built with a loan from Eximbank of China, would east the repayment of the loan.
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Managing Director of mainstream energy solutions, Audu Lamu said the plant would reduce the instability of the national grid.
In July, the BPE said that the National Council on Privatization approved the strategy and work plan to fast-track the concession of the plant.
The enterprise had also said that after the release of the RFQ, it would release a shortlist of prospective investors; the issue of RFQ; evaluation of technical proposals; and shortlist prospective investors for financial bid opening; as well as set a date for the financial bid opening, all within a short timeframe.
The move to concession the hydro plant comes on the heels of a consistently low power supply to the country’s 218 million population.
Although the Transmission Company of Nigeria currently has over 12, 000MW distribution capacity yet, the company has been able to wheel just about 4000MW.
When completed, the 700MW hydro plant will go a long in boosting Nigeria’s power generation which has been hovering around 4000MW.
