• Monday, July 22, 2024
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Nigeria approves governance framework for $3bn hydropower plant

Osinbajo’s next move and Mo Ibrahim’s validation

The National Council on Privatisation (NCP) has approved a governance framework for the development of a $3 billion hydropower plant in Makurdi, Benue State, which will provide 1,650 megawatts of power.

The approval was given at the NCP meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

Laolu Akande, Osinbajo’s spokesman, said it is expected to be the largest hydropower project in West Africa.

He said with the NCP’s nod, the development of the project, which emerged by way of an unsolicited proposal, would proceed through the public-private partnership arrangement subject to compliance with all existing laws including the Public Procurement Act.

Akande said the project would be the first of its kind in the country and is expected to provide 1,650 megawatts of power.

According to him, there is a project steering committee of the NCP to provide leadership and high-level support to ensure the success of the transaction.

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He said, “The membership includes minister of power as chair, minister of water resources as co-chair and the Bureau of the Public Enterprises (BPE) as vice chairman.

“Other members will be drawn from the Ministries of justice, environment, and agriculture. And, representatives of the Infrastructure Concession Regulatory Commission, (ICRC), Nigerian Bulk Electricity Trading (NBET), and the Transmission Company of Nigeria (TCN).”

Akande also said Benue, Nasarawa and Taraba State Governments will also have members and the Director of Infrastructure & Public Private Partnership (PPP) at BPE will serve as Secretary. A transaction adviser of international repute assist BPE in the project.

He further said the council also received updates on the Zungeru Hydroelectric Power Plant and was notified of the investor’s interest in the concession of the plant.

“Infrastructure Concession Regulatory Commission (ICRC) had issued a Certificate of Compliance in respect of the Outline Business Case (OBC) submitted for the project,” Akande said.

“Regarding updates on the situation with the electricity distribution companies, NCP was informed of the intervention and restructuring of Kano, Benin, Kaduna, Ibadan and Port Harcourt Discos.”

According to Akande, the notification for change of directors of those Discos had been fully filled to the Corporate Affairs Commission, reflecting the takeover of the 60 percent shares by the lenders in three out of the five Discos namely Kaduna, Kano and Port Harcourt.

He added that the NCP had also approved the appointment of Sutura Aisha Bello as a director for Infrastructure and PPP in the Bureau of Public Enterprises.