Govt activates N162.9b Zungeru 700MW power plant MoU

The Federal Government has activated a Memorandum of Understanding (MoU) between it and a Chinese Consortium Sinohydro/CNEEC Corporation for the immediate commencement of work on the construction of 700 Mega Watts (MW) Zungeru Hydroelectric Power Project in Niger State.

This followed the nod given to the contract by the Federal Executive Council some weeks ago.

The construction of the plant is coming 30 years after government first did a feasibility study on it.

Minister of State for Power, Hajiya Zainab Ibrahim Kuchi, who spoke at the signing of the contract in Abuja, said, the project, which is valued at N162. 9 billion, would be completed in 48 months and that on completion, the Bureau for Public Enterprises (BPE) would be invited to privatize the plant like other utilities in the power sector.

The ministry assured that it would immediately release the sum of $309 million representing 25 per cent of government’s counterpart funding for the project while the Exim Bank of China is to provide the remaining 75 per cent of the contract sum.

The eventual managers of the plant are expected to generate sufficient revenue for repayment of the loan when the plant generation takes off.

MAN Dumps Bid to Build Independent Power Plant

The Manufacturers Association of Nigeria (MAN) has announced its decision to terminate the pursuit of an Independent Power Project (IPP), which it embarked upon about three years ago. The project should have been completed this year if it was carried out as planned. President of the association, Chief Kola Jamodu, told journalists in Lagos, at the presentation of Blueprint for the Accelerated Development of Manufacturing in Nigeria that the association would no longer continue the project due to logistic challenges.

 According to him, it will be difficult for the association to distribute the power generated to all its members across the country.  “We are encouraging members to build their own power plants. With all hands on deck, patience and consistency, we will achieve sufficient power generation and distribution in the country”, he said.

Power Projects: FG expresses doubt over Chinese firms

The Federal Government has asked China to attest to the competence and integrity of two Chinese firms contracted to execute two power projects in Nigeria. The government said such a gesture would be necessary in view of the importance it attached to power projects such as the 3,500 megawatts Mambilla hydropower project and the 700mw Zungeru hydropower project being handled by two Chinese firms, SINO Hydro and China Gezhouba Group Company Ltd (CGGC).

Minister of State for Power, Mr. Darius Ishaku, at a meeting with the Chinese Ambassador to Nigeria, Mr. Beng Boqing, in Abuja, stated the concern of the Federal Government on the two companies handling the projects. The minister added that the government would subcontract some parts of the project to other contractors to quicken the realization of the projects’ objectives within the expected period.  According to him, the Federal Government is not comfortable with the companies and has reasons to doubt their ability to successfully handle the projects. This, he said, had made the Federal Government to direct CGGC to pair with SINO Hydro to achieve the targets set for the various projects.

In response to the government’s demand, Boqing, who vouched for the integrity of the companies, said they were as famous in China as they are in Nigeria in areas of hydropower technology.