• Monday, April 15, 2024
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FG approves MESL as preferred bidder for Zungeru power plant concession

Mainstream Energy takes over  $1.3bn Zungeru Power Plant

The federal government has approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant (ZHPP) for a fee of $70,000,251.00 per year for a period of 30 years.

The National Council on Privatisation (NCP) chaired by Vice President Yemi Osibanjo gave the approval at its 2nd meeting for the year 2023, held in Abuja.

The council directed the Bureau of Public Enterprises (BPE) to commence the negotiations and execution of the concession agreement with the preferred bidder.

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MESL scored 1142 marks (94.3 percent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 percent of 1,200 marks, having offered the highest concession fee of $70,000,251.00 to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points, according to a statement signed by Ibeh, Uzoma Chidi, head, Public Communications BPE.

In another development, the council approved a scheme of external restructuring proposed by KEPCO Energy Resources Nigeria Limited (KERNL), the core Investor in Egbin Power Plant.

The approval is to enable the entity to boost its capacity to raise the required capital to double the existing capacity of the plant to 2640MW.