July 13, 2024

FG approves fast-track concession of Zungeru power plant

Oredola Adeola

The Federal Government, through the National Council on Privatisation, NCP, has approved fast tracking of the work plan for the concession of the Zungeru Hydroelectric Power Plant (ZHPP).

This was part of the highlights of the meeting of the Council on Thursday, June 30, 2022, its third in 2022, at the Presidential Villa, presided over by Vice President Yemi Osinbajo.

According to the Council, the key objectives of the Zungeru Hydroelectric Power Plant concession include leveraging private sector access to finance and reduce reliance on government budgetary allocation to fund the China EXIM Bank loan; and leveraging efficiencies and better facility management (maintenance) culture of the private sector for the long-term preservation of the asset.

Recall that Council had, in its December 2020 meeting, approved the concession of the ZHPP the Hydropower & Dams International. The concession of the hydropower plant is being carried out by the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE).

EnergyDay’s check revealed that the 700 MW Zungeru hydroelectric plant located on the Kaduna river, Niger State, is the second biggest hydroelectric dam in Nigeria after the 760 MW Kainji hydropower dam.

The Dam was designed to generate 2630 GWh/year, equivalent to around 10 per cent of the country’s supply requirements.

It is also expected to, in addition to electricity generation, provide flood control, irrigation and water supply.

In another development, the Council was briefed on the performance assessment report of the nine Electricity Distribution Companies (DISCOs), which has been forwarded to the Nigerian Electricity Regulatory Commission (NERC), the sector regulator, for further review and action.

The Council also noted that a thorough performance assessment revealed that most of the set performance targets were not met by the 9 DISCOs.

The meeting had in attendance council members including Federal Ministers, and representatives of Federal Ministries such as the Minister of Water Resources, Engr. Suleiman Adamu; Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh; heads of MDAs and other senior government officials.