Mainstream Energy Solutions Limited has been announced as the preferred bidder for the concession of the 700 megawatts Zungeru Hydroelectric Power Plant for a fee of $70,000,251 per year for a period of 30 years.
A statement in Abuja on Wednesday by the Head, Public Communications, Bureau of Public Enterprises (BPE), Ibeh Chidi, also announced the approval of the merger of Egbin Power Plant with KEPCO Energy Resources Nigeria Limited.
The statement said the National Council on Privatisation (NCP), chaired by the Vice President, Prof. Yemi Osibanjo (SAN), which gave the approval at its 2nd meeting for the year 2023, held on Tuesday, February 21, 2023 at the Presidential Villa, Aso Rock, Abuja , directed the Bureau of Public Enterprises (BPE) to commence the negotiations and execution of the concession agreement with the preferred bidder.
The statement read in part, “The National Council on Privatisation has approved Mainstream Energy Solutions Limited as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant for a fee of $70,000,251 per year for a period of 30 years.”
The 700MW capacity Zungeru HPP is Nigeria’s second-largest hydroelectricity power station, behind the Kainji Hydroelectric Power Plant, which has capacity of 760MW.
Energy generated from the plant is to be evacuated via a 135kV line to Kainji Dam and a double circuit 330kV line to connect to the line between Shiroro and Jebba dams, as the power will subsequently be integrated into the national electricity grid.
The NCP, chaired by the Vice President, Prof. Yemi Osibanjo, gave the approval for the concession of the plant at its second meeting for the year 2023, which wad held on February 21, 2023 at the Presidential Villa, Abuja.
“MESL (the preferred bidder) scored 1142 marks (94.3 per cent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 per cent of 1,200 marks, having offered the highest concession fee of $70,000.25 to beat Africa Plus Partners Nigeria Limited Consortium which scored 742 points,” it stated.
It would be recalled that the NCP at its 7th meeting for the year 2020, held on December 21, 2020, approved the concession of the ZHPP, consequent which the Federal Ministry of Power (FMOP) donated an irrevocable Power of Attorney to the BPE on June 30, 2021 for the implementations of the NCP’s decision.
Based on this, the BPE published the Requests for Qualifications (RfQ) for the concession of the power plant in three national newspapers on October 27, 2022 which at the close of the deadline, 11 firms submitted bids. Three of them – Africa Plus Partners Nigeria Limited Consortium (APPNLC), Mainstream Energy Solutions Limited (MESL and North-South Power Consortium (NSP) were prequalified.
The Zungeru hydroelectric project site is located on the Kaduna River near Zungelu in the Niger State, approximately 150km away from Abuja, the capital city of Nigeria.
The statement further disclosed that the NCP has approved A scheme of External Restructuring proposed by KEPCO Energy Resources Nigeria Limited (KERNL), the core Investor in Egbin Power Plant.
The approval is to enable the entity to boost its capacity to raise the required capital to double the existing capacity of the plant to 2640MW.
