Consolidating the progress and achievements of President Muhammadu Buhari’s administration: Phase 5 (Nigeria’s Power Project Deals)

The Federal Government of Nigeria have since the inception of Muhammadu Buhari’s administration in 2015 collaborated and signed agreement with the China Export-Import Bank, the North South Power Company and Siemens Energy Group to construct hydro power projects in the country.

Mambilla Hydroelectric Power Station

The Mambilla Hydroelectric Power Station is a 3,050 MW hydroelectric power project under development in Taraba State, Nigeria.

When completed, it will be the largest power-generating installation in the country, and one of the largest hydroelectric power stations in Africa.

On 30 August 2017, the Federal Executive Council (FEC) approved the award of the construction contract to a consortium of Gezhouba Group, Sinohydro, and CGCOC Group.

The total cost of the project is budgeted at US$5.8 billion. China’s Export-Import Bank agreed to provide 85% of the funding (US$4.93 billion), while Nigeria’s Government has committed to contribute 15 percent (US$870 million) of the construction costs. The funds are to be paid directly to the construction consortium in tranches, as the work progresses. Construction of this power station was estimated to generate 50,000 temporary and permanent jobs.

30MW Gurara Concession Agreement with North South Power Company and 360 megawatts proposed Gurara II Hydroelectric Power Station

On Tuesday, May 12, 2020 the Federal Government of Nigeria, through the Federal Ministry of Water Resources signed a 25-year Concession Agreement for the 30MW Gurara hydropower plant with North South Power Company Limited. The Gurara project in addition to adding 30MW to the power generation of the country, would also bring NGN17.6 billion revenue to the coffers of the Nation as well as create jobs for a lot of Nigerians.

Gurara II Power Station is a proposed 360 megawatts hydroelectric power station across the Gurara River in Nigeria. The power station is owned and is under development by the Federal Government of Nigeria. It is planned on Gurara river/basin in Kaduna, Nigeria.

The project is expected to generate 1,130 GWh of electricity. The project cost is expected to be around $1.24 billion. The Exim Bank of China agreed to provide $1 billion towards the construction of this renewable energy project. The project construction is expected to commence from 2023. Subsequent to that it will enter into commercial operation by 2026.

Zungeru Hydroelectric Power Station

Zungeru Hydroelectric Power Station is a 700 megawatts (940,000 hp) hydroelectric power plant under construction in Niger State, Nigeria. When completed, as expected, it will be the third-largest hydroelectric power station in the country, after the 3,050 MW Mabilla Hydroelectric Power Station (under construction) and the 760 megawatts (1,020,000 hp) Kainji Hydroelectric Power Station.

The project cost has been reported as $1.3 billion. 25 percent of the funding is sourced from the Federal Government of Nigeria, and 75 percent is funded by the Chinese government, through the Exim Bank of China.

The power station would add 2,640 GWh to the Nigerian grid, annually.

Siemens Power Deal

In July 2019, the federal government signed a $2 billion power project deal (PPI) with Siemens AG to increase electricity generation to 25,000 megawatts (MW) in six years.

These projects and many others are dividends of the Muhammadu Buhari’s administration.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: