In a significant development aimed at bolstering Nigeria’s power generation capacity, the Federal Government has officially handed over the operations of the $1.3 billion Zungeru Hydroelectric Power Plant to Penstock Limited.
The announcement was made during the inaugural 2024 session of the National Council on Privatisation (NCP) held at the Presidential Villa in Abuja on Tuesday.
The transition of operations to Penstock Limited is expected to play a pivotal role in meeting the surging energy demands of the country.
The Zungeru Hydroelectric Power Plant, situated in central Nigeria, is a newly constructed facility with a capacity of 700 megawatts, funded by a $1.3 billion loan from China.
The Concession Agreement between the Bureau of Public Enterprises (BPE) and Penstock Limited was inked on December 13, 2023.
Following approval from the Council, Penstock Limited fulfilled its obligations by remitting 50% of the commencement fees on January 5, 2024.
The official handover ceremony occurred on January 23, 2024, formalizing the transfer of plant operations to Penstock Limited.
In a preceding development, the Bureau of Public Enterprises (BPE) had previously granted the concession to Mainstream Energy in February of the previous year.
Under this agreement, Mainstream Energy is mandated to pay the Nigerian government $70 million annually over three decades in exchange for operational rights to the plant.
Audu Lamu, CEO of Mainstream Energy, expressed his commitment to upholding international standards in managing the asset, highlighting the commencement of the real work associated with the plant’s operation.
