SECTOR INSIGHT 23/02/2023
FG Names Winner of 700MW Zungeru Plant Concession
The Federal Government, on Wednesday, announced the preferred bidder for the concession of the 700 megawatts Zungeru Hydroelectric Power Plant for a fee of $70,000,251 per year for a period of 30 years.
It named the preferred bidder as Mainstream Energy Solutions Limited and also announced the approval of the merger of Egbin Power Plant with KEPCO Energy Resources Nigeria Limited.
The government disclosed this in a statement issued in Abuja by the Head, Public Communications, Bureau of Public Enterprises, Ibeh Chidi.
The statement read in part, “The National Council on Privatisation has approved Mainstream Energy Solutions Limited as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant for a fee of $70,000,251 per year for a period of 30 years.”
The 700MW capacity Zungeru HPP is Nigeria’s second-largest hydroelectricity power station, behind the Kainji Hydroelectric Power Plant, which has capacity of 760MW.
Energy generated from the plant is to be evacuated via a 135kV line to Kainji Dam and a double circuit 330kV line to connect to the line between Shiroro and Jebba dams, as the power will subsequently be integrated into the national electricity grid.
The NCP, chaired by the Vice President, Prof. Yemi Osibanjo, gave the approval for the concession of the plant at its second meeting for the year 2023, which wad held on February 21, 2023 at the Presidential Villa, Abuja.
The statement stated that the NCP directed the Bureau of Public Enterprises to commence the negotiations and execution of the concession agreement with the preferred bidder.
“MESL (the preferred bidder) scored 1142 marks (94.3 per cent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 per cent of 1,200 marks, having offered the highest concession fee of $70,000.25 to beat Africa Plus Partners Nigeria Limited Consortium which scored 742 points,” it stated.
Recall that the NCP at its 7th meeting for the year 2020, held on December 21, 2020, approved the concession of the Zungeru HPP, and the Federal Ministry of Power donated an irrevocable Power of Attorney to the BPE on June 30, 2021 for the implementations of the NCP’s decision.
