FG to earn $2.1tn from Zungeru hydropower plant concession

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The Federal Government will, for the next 30 years, earn a total of $2.1 trillion for the concession of the 700 MW Zungeru hydropower plant. Senior Special Assistant to the President on Media & Communications (Office of the Vice President), Stanley Nkwocha, in a statement obtained by our correspondent on Tuesday, said the concessionaire would pay FG $70 million per year over the next three decades for managing the complex.

This brings the estimated revenue to $2.1 trillion for the next 30 years. The transfer of ownership of the Zungeru Hydroelectric Power Plant to Penstock Limited took place on January 23, 2024, following the settlement of the project’s commencement fee on January 5, 2024. According to Nkwocha, the deal was disclosed on Tuesday during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja.

At the meeting, the NCP announced that the Concession Agreement was signed on December 13, 2023, by the Bureau of Public Enterprises (BPE) and Penstock Limited. It stated that following the Council’s approval, the Concessionaire fulfilled its obligation by paying 50 per cent of the commencement fees on January 5, 2024. Penstock Energy Ltd is a subsidiary of Mainstream Energy Solution Ltd, the concessionaire of Kainji and Jebba Hydro Power Plants (HPP) with an installed capacity of 760MW and 578.4MW.

Penstock Energy Limited financed the 700MW Zungeru hydropower plant- the second largest hydropower plant in Nigeria deal by a staggering $1.3bn loan from China.

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