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FG okays concession of 700MW Zungeru power plant

Agency Report
Agency Report

The Federal Government has given the green light to speed up the concession process for the 700 megawatts Zungeru Hydroelectric Power Plant in Niger State.

The Head, Public Communications, Bureau of Public Enterprises, Ibeh Chidi, made this known in a statement released in Abuja on Tuesday.

According to Chidi, the approval of the strategy work plan was granted by the National Council on Privatisation.

The statement read in part, “The National Council on Privatisation at its 3rd meeting for 2022 held at the Presidential Villa, Abuja recently, approved the strategy and work plan to fast-track the concession of Zungeru Hydroelectric Power Plant in Wushishi Local Government Area of Niger State subject to any further development from the Ministry of Power.”

The council noted that the key objectives of the plan’s concession include leveraging the private sector access to finance and reducing reliance on government budgetary allocation to fund the China EXIM Bank loan.

It stated that there was a need to adopt a timely implementation programme, hence, a fast-track transaction process was recommended.

The BPE stated that the approved fast-track transaction process would enable the bureau to work with the joint technical committee, chaired by the chairman of the Technical Committee of the NCP.

It said members were drawn from the Office of the Vice President, Ministry of Power, Ministry of Finance, Ministry of Water Resources, BPE, and Accountant-General of the Federation.

The statement stated that the committee would review and address all issues including approvals and regulations needed to proceed to the next phase of the transaction.

“The fast-track transaction plan includes a reduced time frame for obtaining approvals for key stages of the transaction process. The aim is to get value for the transaction within a short time,” the bureau states.

It added, “This includes an advert for Request for Qualification, shortlist of successful prospective investors, issuance of RFQ, evaluation of technical proposals and shortlist of prospective investors for financial bid opening as well as setting a date for the financial bid opening.“


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