FEC okays management concession for 400MW hydro power plant

Alade Abayomi ADeleke
Alade Abayomi ADeleke
Power Plant

The Federal Executive Council has approved an Operation and Management concession for the 360 Mega Watts Gurara II Multipurpose Dam & Hydro Power Plant and the 40 Mega Watts Kashimbilla Hydro Power Plant under a Public Private Partnership model.


The Infrastructure Concession Regulatory Commission made this known on Wednesday, in a press statement, according to a report by The Sun.


The move by FEC followed the regulatory guidance of the ICRC, and also saw the approval for the concession of Secure E-ticketing Solutions for the Lagos Ibadan Rail Service and the Warri-Itakpe Rail Service as well as the Device Management System, a project by the Nigerian Communications Commission.


According to the statement by ICRC, the approvals by FEC is expected to bring about the generation of 400 megawatts of electricity, infusion of private sector funds into the nation’s economic cum infrastructure development and a total revenue generation of N647.7 billion.


It would also help in the fight against crime, terrorism and insecurity while improving the effectiveness of the rail services in the specified routes.


The 360MW Gurara II HPP is a greenfield project that will adopt a Build, Operation, Maintenance and Transfer PPP model that will be executed by Messrs. CGCOC Group Co. Limited under an Engineering Procurement and Construction contract for a concession period of 30 years.


The dam, hydropower plant, and other complementary infrastructure will be executed within a concession period of 30 years and an expected total revenue generation of $875 million USD within the period.


Both the Gurara and the Kashimbilla HPP projects will bring about Improved living conditions and employment, Promotion of agriculture through irrigation, reduction of Greenhouse Gases as well as foreign exchange preservation.


For the Kashimbilla 40MW HPP the executive council’s approval is for the operations and maintenance of the Hydropower Plant.


Recall that one of the primary objectives of the dam is to mitigate the environmental disaster associated with overflow of flood water in various downstream states of Taraba, Benue, Kogi, Delta, Cross River and Bayelsa, and potentially affecting more than 6 million people.


The statement read in part, “The hydropower component of the Dam will also aid in ecological flood control, water supply for a population of about 400,000 people, irrigation potentials for about 3,000 hectares of arable land for farming as well as fishing to support food security.


“The project cost is put at ₦ 7.68 billion approved for a concession period of 15 years. It will yield a total revenue of ₦ 85 billion.


“The Device Management System which has the NCC as grantor, seeks to provide a single control point for comprehensive device management for mobile communication devices in Nigeria.


“Specifically, the proposed DMS will support capabilities for tracking mobile communication devices to eliminate fake and substandard devices, provide detailed statistical information for stakeholders’ use, and support the fight against cybercrime and insecurity.


“It adopts a Design, Build, Finance, Operate, Maintain and Manage PPP model for a concession period of 10 years at a cost of $26 million. A total revenue generation of ₦86.6 billion.


“For the Lagos-Ibadan E-ticketing and the Warri-Itakpe concessions, they adopt a Design, Finance, Build, Operate and Manage a Secure Ticketing Solution (Hardware and Software) for the Passengers’ Stations.

The solution seeks to ensure the provision of electronic tickets (e-tickets) and manual tickets, provision of adequate infrastructural security, deployment of an adequate maintenance regime, provision of an adequate training regime and provision of value-for-money throughout the life of the solution.


“The Lagos-Ibadan concession was approved at a cost of N1,100,000,000 (N1.1 billion), granted to Messers Global Software Digital Solutions Ltd (GSDS) and Datamataic Global Services Ltd (DGS) as a technical partner, for a period of 10 years.

A total of ₦112.8 billion will be generated from this project.


“The Warri-Itakpe counterpart will be executed at the cost of N860,806,423, granted to Fane International Consult Limited and Artificial Intelligence Technologies Limited (AITL) as a technical partner, also for a 10-year term. Revenue generation is estimated to hit ₦63.3 billion.”

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