The Federal Government of Nigeria is poised to reap financial gains from the concession of the 700 MW Zungeru Hydropower Plant over the next three decades.
The Presidency, through Senior Special Assistant Stanley Nkwocha, revealed that the concessionaire, Penstock Limited, will pay the government $70 million annually for the management rights of the complex. This agreement is estimated to generate a total revenue of $2.1 trillion for the Nigerian government throughout the 30-year period.
The announcement was made during the inaugural meeting of the National Council on Privatisation (NCP) for the year 2024, held at the Presidential Villa in Abuja. The NCP disclosed that the Concession Agreement was officially inked on December 13, 2023, between the Bureau of Public Enterprises (BPE) and Penstock Limited. Subsequently, Penstock Limited fulfilled its financial obligations by paying 50% of the commencement fees on January 5, 2024.
Penstock Energy Limited, a subsidiary of Mainstream Energy Solution Ltd, emerged as the key financier of the Zungeru hydropower plant project. This monumental endeavor, which stands as Nigeria’s second-largest hydropower plant, was made possible through a $1.3 billion loan secured from China.
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