Tuesday marked the official handover of control of the Zungeru Hydroelectric Power Plant from the Federal Government—which had chosen Mainstream Energy Solutions Limited in February 2023—to Penstock Limited.
According to a statement issued by Stanley Nkwocha, Senior Special Assistant to the Vice President on Media and Communications, Tuesday’s action is anticipated to “boost Nigeria’s power generation capacity and contribute significantly to meeting the country’s growing energy demands.”
“FG finally hands over Zungeru Hydroelectric power plant to concessionaire” is the title of the statement.
It occurred on February 23, 2023, one year after the National Council on Privatization authorized Mainstream Energy Solutions Limited’s designation as the top bidder for the concession of the Zungeru Hydroelectric Power Plant.
The largest hydroelectric project in Nigeria is the 740MW Zungeru power complex, which is situated in Niger State at the upper and middle stages of the River Kaduna. Even though it was proposed in 1982, building didn’t start until 2013 when an agreement was reached with Sinohydro Consortium and China National Electrical Equipment Corporation, two Chinese companies.
As to the Bureau of Public Enterprises, the project has consumed approximately $1.3 billion, with the Export-Import Bank of China providing a preferential financing facility.
75% of the project’s finance will come from low-interest loans provided by the Exim Bank, with the remaining 25% coming from the FG.
The plant is projected to generate 2.64 billion kilowatt-hours of electricity a year, which is approximately 10% of Nigeria’s total domestic energy needs. 2023 saw its commissioning.
During the inaugural NCP meeting of 2024, which took place in the Presidential Villa in Abuja, the council declared noteworthy advancements in the Plant concession, which encompassed the formal handover of the plant’s operations to Penstock Limited.
The concession agreement was signed by Penstock Limited and the BPE on December 13, 2023.
On January 5, 2024, the Concessionaire paid 50% of the commencement fees in accordance with the Council’s decision, fulfilling their obligation.
