The Nigerian National Council on Privatisation (NCP) has selected Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant (ZHPP) on the upper and middle reaches of Kaduna River in the Niger State (North Central Nigeria) at a cost of US$70m/year for a period of 30 years.
The 700 MW project, scheduled to enter commercial operations in March 2023, was built by a Chinese consortium comprising China National Electric Engineering Company (CNEEC) and Sinohydro. Construction started in 2013. With its four 175 MW hydroelectric turbines, Zungeru will generate 2.6 TWh/year.
A preferential loan facility from the Export-Import Bank (Exim Bank) of China covered 75% of the plant cost, which has been reported at US$1.3bn. The remaining part was sourced from the Federal Government of Nigeria.
MESL, a local energy firm, is the second largest power generation company in the country, with a market share of 16% in 2020, after Sahara Group (19%). The group already operates the Kainji (760 MW) and the Jebba (578 MW) dams under a concession agreement signed in 2013. Both plants are located on the Niger River in Niger State. Hydro accounts for 20% of Nigeria’s power mix.
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