Nigeria don start regulatory review of im $1.3 billion Zungeru hydropower plant. Di plant dey supply about 350 megawatts to national grid, na half of im installed capacity.
Infrastructure Concession Regulatory Commission, ICRC, dey check contractual and operational constraints wey dey affect di 700MW facility. Penstock Limited dey operate di plant under public-private partnership.
For statement dated October 8, di commission talk say e call meeting for Abuja with di operator, ministries of power and water resources, and Bureau of Public Enterprises, BPE, to identify issues wey dey limit di plant performance.
Di review bring attention to di gap between investment for electricity infrastructure and di power wey e dey deliver. For Nigeria, raising output from existing plant fit help strengthen supply, even though di commission no specify how much additional electricity di review go unlock.
Zungeru dey on Kaduna River for Niger State. Dem build am with Chinese assistance and e get four generating units rated at 175MW each, according to Bureau of Public Enterprises.
Beyond electricity, dem design di project to support flood control, irrigation and water supply. Penstock Limited na subsidiary of Mainstream Energy Solutions Limited, according to BPE handover announcement.
Under di arrangement wey ICRC describe, di bureau act as government grantor on behalf of Ministry of Power. ICRC Director-General Jobson Oseodion Ewalefoh talk say di review go examine obligations of both government and concessionaire, with aim to improve performance and ensure value for money.
‘Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results. In PPP, risks are shared and no party is doing the other a favour. Our duty is to ensure sustainability, return on investment is achieved, services are delivered, and value for money is secured in the interest of the Nigerian people,’ he talk.
Ewalefoh talk say di commission role na to monitor compliance, no be to act as party to di concession agreement. He stress say di arrangement must deliver services to Nigerians while e remain sustainable and provide return on investment.
However, di statement no detail di legal and operational issues wey dem discuss, no explain their respective effects on generation, and no provide deadline for improving output. E also no include separate response from Penstock.
Di reported 350MW represent about 50% of Zungeru installed capacity, but di commission no state whether dat figure na average over a period or output at particular time.
Di scrutiny go extend beyond Zungeru. Ewalefoh talk say similar compliance reviews go cover Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila, with final report submitted to President Bola Tinubu.
At end of di meeting, stakeholders list di legal and operational issues wey dem raise and agree to reconvene.
