Nigerian govt to earn $2.10bn as it hands Zungeru Hydroelectric to private firm

Nigerian govt to earn .10bn as it hands Zungeru Hydroelectric to private firm

For a fee of $70,000,251 per year, the Federal Government has concession the 700 megawatts Zungeru Hydroelectric Power Plant.

The Head, Public Communications, Bureau of Public Enterprises (BPE), Ibeh Chidi. said the Hydroelectric Power Plant was concession to Mainstream Energy Solutions Limited for 30 years.

The deal will fetch the Nigerian government a sum of $2.10 billion for the duration.

“The National Council on Privatisation has approved Mainstream Energy Solutions Limited as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant for a fee of $70,000,251 per year for a period of 30 years,” BPE revealed in a statement on Wednesday.

“MESL (the preferred bidder) scored 1142 marks (94.3 per cent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 per cent of 1,200 marks, having offered the highest concession fee of $70,000.25 to beat Africa Plus Partners Nigeria Limited Consortium which scored 742 points,” it stated.

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Ripples Nigeria gathered that the Zungeru Hydroelectric Power Plant evacuates the energy generated to Kainji Dam through a 135kV line.

It also connects to Shiroro and Jebba dams via a 330kV line. Following the connection to the dam, the power is integrated into the national electricity grid.

In terms of capacity, Zungeru Hydroelectric Power Plant falls behind Kainji Hydroelectric Power Plant, which has a capacity of 760MW, making it the second-largest hydroelectricity power station in the country.

The approval for the concession was given on Tuesday after a meeting by the National Council on Privatisation (NCP), which was chaired by Vice President, Yemi Osibanjo.


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