Work on 700MWs Zungeru hydro-power plant begins In Nigeria

ALMOST 32 years after, work on the 700 Megawatts (MWs) Zungeru Hydroelectric power plant formally took off Tuesday as President Goodluck Jonathan performed the ground breaking ceremony at the project site.

And in response to the call by the Niger State Governor, Babangida Aliyu for the President to sign the amended Hydro Electric Power Producing Areas Development Commission (HYPPADEC), which has been passed by the National Assembly, Jonathan promised that the bill would be looked into once he gets back to Abuja.

Jonathan also announced that the challenges to private sector participation have been removed.

He added that the various incentives such as a robust regulatory framework, tax and cost holiday and cost reflective tariff for power sale have been put in place to attract more private investment to the sector.

The construction of the plant is part of efforts to diversify the nation’s energy mix in the amidst of uncertainty associated with thermal (gas) plants.

The project will be the fourth major dam to be constructed in Nigeria and would be built at the cost of N162.9 billion with a completion period of four years.

Similar take off ceremony for the 3,050MW Mambila Hydro Electric Power Project is also expected soon.

The project is being financed through a long term credit from Exim Bank of China on a Debt Equity ratio of 75:25. This funding has been secured by the Federal Ministry of Finance at two per cent and the Federal Government has paid its equity portion of 25 per cent of the total fund, according to officials.

Chief Representative of the consortium in Nigeria, Ju Shiquan said that construction work would commence immediately after the commissioning.

Minister of Power, Prof. Chinedu Nebo said: “Today, we have in place not just the designs, but the funding mechanism of all the major hydro schemes in the country. With the recent approval of $1.72 billion counterpart funding for the sector by the National Economic Council, not just for Zungeru, but Mambilla Dam in Taraba and Gurara 11 Dam in Suleja, Niger State will soon see the light of the day.