Home BUSINESS Federal Government Perfects Plans To Concession Zungeru Hydroelectric Power Plant

Federal Government Perfects Plans To Concession Zungeru Hydroelectric Power Plant

The Federal Government of Nigeria has perfected plans to engage in the concession of the Zungeru Hydroelectric Power Plant (ZHPP).
The National Council on Privatization (NCP), at its meeting today, July1, in the Presidential villa, Abuja approved the fast tracking of the work on the plan, even as it also approved the board composition and proposed governance framework for the sustainable management and payment of post-privatization liabilities of the power sector transferred to the Nigerian Electricity Liability Management Company (NELMCO) Board.
Rising from the meeting which was presided over by Vice President Yemi Osinbajo, the Council composed NELMCO to include the Minister of Finance, as Chairman; while members will comprise the Minister of Power; Director General, Bureau of Public Enterprises (BPE); Director General, Debt Management Office (DMO); Managing Director, NELMCO; and all its Executive Directors. It was also resolved that two key members from the private sector be included in the board.
The Council noted that the key objectives of the Zungeru Hydroelectric Power Plant concession include leveraging private sector access to finance and reduce reliance on government budgetary allocation to fund the China EXIM Bank loan; and leveraging efficiencies and better facility management (maintenance) culture of the private sector for long-term preservation of the asset.
The Council had, in its December 2020 meeting, approved the concession of the ZHPP.
The Council, which was briefed on the performance assessment report of the nine Electricity Distribution Companies (DISCOs), forwarded the report to the Nigerian Electricity Regulatory Commission (NERC), the sector regulator, for further review and action.
The Council noted that a thorough performance assessment revealed that most of the set performance targets were not met by the 9 DISCOs.
The meeting had in attendance Federal Ministers and representatives of Federal Ministries such as the Minister of Water Resources, Engr. Suleiman Adamu; Director-General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh; heads of MDAs and other senior government officials.

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