The Federal Government chose Penstock Limited to take over the Zungeru Hydroelectric Power Plant’s operations on Tuesday, officially replacing Mainstream Energy Solutions Limited, which it had chosen in February 2023.
The PUNCH reported that the 740MW Zungeru power facility located at the upper and middle reaches of River Kaduna in Niger State is the largest hydropower project in Nigeria.
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. In 2023, it was commissioned.
According to a statement issued by the Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha, Tuesday’s action is anticipated to “boost Nigeria’s power generation capacity and contribute significantly to meeting the country’s growing energy demands.”
The statement read, “FG finally hands concessionaire control of Zungeru Hydroelectric power plant.”
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.
Even though the 740 MW Zungeru power project was first proposed in 1982, development on it didn’t start until 2013 after an agreement was reached with Sinohydro Consortium and China National Electrical Equipment Corporation.
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.
At the NCP for 2024’s inaugural meeting which took place at the Presidential Villa in Abuja, the council declared notable advancements in the Plant concession, including the official transfer 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.
On January 23, 2024, the plant’s operations were formally transferred to Penstock Limited with a handover ceremony.
The council’s vice president, Kashim Shettima, also revealed the Federal Government’s intentions to recapitalize and reorganize the Bank of Agriculture in order to support Nigeria’s agricultural industry and ensure national food security.
