- Nigeria plans to grant a concession on its $1.3 billion hydropower plant.
- The private partner will be responsible for repaying the Chinese loan.
Nigeria plans to grant a concession on its $1.3 billion hydropower plant now under construction and is seeking bids from private investors to operate the China-funded plant.
The Zungeru Hydroelectric Power Plant (ZHPP), the biggest of its type in Nigeria, is expected to generate 700 megawatts and is being funded by loans from China’s Exim Bank, the Bureau of Public Enterprises (BPE),
Nigeria’s privatisation agency said the project in northwest Niger state would meet around 10% of the country’s domestic energy needs when completed.
Africa’s biggest economy has an installed capacity of 12,500 MW but produces only about a quarter of that, leaving many households and businesses reliant on diesel-powered generators. Diesel prices have soared in Nigeria since the start of the year as global oil prices surged after Russia invaded Ukraine, and inflation is currently running at a 17-year high.
Bids are expected to be submitted by November 24th, and the concession completed by March next year.
The private partner will be responsible for repaying the Chinese loan to reduce the government’s financing of the plant.