The Bureau of Public Enterprises, Nigeria's privatization agency, has offered a concession of the biggest hydroelectric power project currently under construction in the country.
Bids from potential investors are expected to be submitted by November 24. However, the official agency press release does not provide any information on the date of the plant's completion.
The concession process is expected to be completed by March of next year. The offer is part of the government’s policy of enhancing the country’s energy sector and meeting its needs for private investment.
According to the agency, with its four 175 megawatt turbines, the Zungeru Hydroelectric Power Plant is one of the largest power plant financing projects in sub-Saharan Africa. After completion, it is expected to generate a total of 700 megawatts' worth of electricity.
The project has been funded by the Export-Import Bank of China, and its cost is estimated at $1.3 billion. The concession implies the transfer of the burden of repaying the Chinese loan to a private partner or partners.
The plant is located on the upper and middle reaches of Kaduna River in Niger State, 150 km from Abuja, Nigeria’s capital. The potential benefits from the construction include job creation for 2,000 people, energy production to cover a significant percentage of domestic energy needs, flood control, and irrigation.
Despite the fact that Nigeria is rich in fossil fuels, the country's energy system cannot cope with the ever-increasing loads that have been placed on it. The country's existing power plants cannot provide electricity to Nigeria's 225 million population, and many citizens have to rely on diesel generators.