Almost a year after securing the concession, Nigeria’s Mainstream Energy, which now manages two of the largest hydroelectric plants in the nation, has started to run a new facility sponsored by China, the utility announced on Thursday.
Built with a $1.3 billion loan from China, the new 700-megawatt plant in Zungeru, central Nigeria, is operated by Mainstream Energy Solution Ltd.’s subsidiary, Penstock Energy Ltd.
Mainstream Energy was granted the concession by Nigeria’s privatization agency, the Bureau of Public Enterprises (BPE), in February of last year. Mainstream Energy will operate the plant for the Nigerian government for three decades for $70 million a year.
Laptops 1000CEO of Mainstream Energy Audu Lamu said in a statement on Thursday that “this is where the real work starts in ensuring that the asset is managed by international standards.”
China has been actively involved in Nigeria for the past ten years, lending money through its development bank to construct infrastructure such as trains, airports, and power plants.
With a combined production of 1,338 megawatts, the Kainji and Jebba hydroelectric dams, operated by Mainstream Energy, provide approximately 33% of Nigeria’s current electricity generation of 4,000 megawatts.
Given that millions of homes and companies experience frequent blackouts, much more is required.
