Nigeria Awards a $70 million Annual Electricity Concession to a Local Company.
The Bureau of Public Enterprises (BPE) reported that Nigeria has selected local energy company Mainstream Energy Solution Ltd to operate and manage a Chinese-funded hydroelectric power facility at a cost of $70 million per year for the following 30 years.
The 700 megawatt (MW) Zungeru Hydroelectric Power Project is being constructed in northwest Niger state at a cost of $1.3 billion, and the BPE had stated in November that it was looking to give a concession for it. The highest proposal was made by Mainstream Energy Solution Ltd, according to a statement from BPE spokesperson Uzoma Ibeh.
According to the company’s website, Sani Bello, a businessman and owner of a nearby oil and gas company, has served as its chairman for the past 11 years.
Zungeru is funded by loans from China’s Exim Bank, is expected to boost erratic power supplies in Africa’s most populous nation. The power plant is expected to begin supplies by the end of March.