The National Council on Privatisation (NCP) has approved a work plan to fast-track the concession of Zungeru Hydroelectricity Power Plant (ZHPP) in Wushishi local government area of Niger State. This is, however, subject to any further development from the ministry of power.
The strategy, which comes amid Nigeria’s present electricity crisis, was approved at the NCP’s 3rd meeting for 2022 held at the Presidential Villa, Abuja.
The key objectives of the strategy include leveraging the private sector access to finance the power project and reducing reliance on government budgetary allocation to fund the China EXIM Bank loan.
There is also the need to ensure that a timely implementation programme is adopted hence, which is why a fast-track transaction process is being recommended, according to the Bureau of Public Enterprises (BPE).
The approved fast-track transaction process will enable the BPE to work with the Joint Technical Committee (JTC), headed by the chairman of the technical committee of the NCP. Members are drawn from the office of the vice president, ministries of power, finance, water resources, BPE, and the accountant general of the federation to review and address all issues, including approvals and regulations needed to proceed to the next phase of the transaction.
Read also: Terrorists responsible for poor power supply says FG
The fast-track transaction plan includes a reduced time frame for obtaining approvals for key stages of the transaction process.
The aim is to get value for the transaction within a short time, which includes an advertisement of the request for qualification (RFQ), shortlisting of successful prospective investors, issuance of RFQ, as well as evaluation of technical proposals, and shortlist of prospective investors for financial bid opening as well as setting a date for the financial bid opening.
Awarded by the ex-president Goodluck Jonathan-led administration in 2013 at $1.3 billion, the Zungeru hydroelectric power station project is expected to provide 700MW capacity of electricity when fully completed.
The Federal Government on March 28, 2022, commissioned the first of the four units of the power plant, which is the newest and the country’s second hydroelectric scheme in Nigeria after Kainji hydropower station that provides 760MW electricity.
