Authorities said on Friday that Nigeria intends to give a concession on its $1.3 billion hydropower plant that is currently under construction and is looking for proposals from private companies to manage the China-funded plant.
According to the Bureau of Public Enterprises (BPE), Nigeria’s privatization agency, the Zungeru Hydroelectric Power Plant (ZHPP), the largest of its kind in the country, is scheduled to produce 700 megawatts and is being financed by loans from China’s Exim Bank.
According to the organization, when the project in northwest Niger State is finished, it will provide 10% of the nation’s domestic energy requirements.
With an installed capacity of 12,500 MW but a production of only approximately a quarter of that, the largest economy in Africa is dependent on diesel generators for many homes and companies.
Nigeria’s diesel costs have increased significantly since the beginning of the year as a result of the rise in global oil prices following Russia’s invasion of Ukraine. Currently, inflation is at a 17-year high.
Businesses frequently point to the country’s unstable energy supply and unreliable power grid as a major problem impeding growth in the most populous country on the continent.
The privatization agency stated that it anticipates receiving proposals by November 24 and aims to finish the concession by March of the following year. The date of the plant’s commissioning was not specified.
The privatization agency informed investors in an online roadshow on Thursday, that the private partner would be responsible for repaying the Chinese loan in order to reduce government funding of the plant.
