The Federal Government signed an agreement with a consortium of two Chinese firms to build a hydro power plant at Zungeru, Niger State.
The consortium is made up of China National Electricity Corporation and Synohydro Corporation.
The Minister of State for Power, Mrs Zainab Kuchi signed on behalf of the Federal Government while the Executive Vice President, Synohydro, Mr Du Nan, signed on the consortium’s behalf.
When completed, the N163bn hydro plant which shall be located 77km away from the Shiroro hydro power plant, and shall add 700 MW of electricity to the national grid.
Mrs Kuchi said the period has a completion period of four years and shall create up to 1000 jobs for the indigenes of the area.
The Zungeru project had started in 1982 with feasibility studies carried out by Chast T. Main International.
Ten years later, the engineering design, preparation of tender document report, construction management and supervision of the project were awarded to Hidroservice Engenhania Limited of Brazil and G.F. Appio and Associates and Dam Service Company.
There was a review of the feasibility studies in 2008 by Coyne et Bollier and the report recommended an installed capacity of 700MW consisting of four 175MW plant units, a downward review from the initial capacity of 950MW.
The Federal Executive Council approved the award of the contract to CNEEC-Synohydro at its 44th session after the Bureau of Public Procurement had granted a Certificate of No Objection in October 2012 as the Ministry of Power had requested.
Although the total cost of construction was put at N162.99bn, there are three components made up of $377.72m; N44.01bn and 3.7 billion Chinese Yuan.
The Minister said that the project was being 75% funded by the Exim Bank of China with counterpart funding of $309m from the Ministry of Power.
She said, “It is expected that the infrastructure would generate sufficient revenue for the repayment of the loan. The consortium agreement is structured to ensure that the parties are to be jointly and severally responsible for the full implementation of the project.
“On the completion of the project, a total of 700MW of electricity would be added to the national grid, leading to an increase in power delivery to small and medium-scale industries and households, thereby enhancing sustainable power supply to the country.
“In addition, the project has the prospect of enabling multiple commercial activities expected to take place in Zungeru and its environs, such as building projects, agriculture, and food processing industry as well as generating thousands of jobs for the Nigerian economy.”
She added that after completion of the power plant, it shall be privatized like the other power plants being sold to private operators.
The Permanent Secretary in the Ministry of Power, Dr Dere Awosika, said he was delighted that the long-awaited project had finally commenced with the signing of the contract.