The concession and development of eight brown and green field hydropower projects under public-private partnerships are anticipated to contribute 1,268 megawatts of power to the Federal Government. Among these projects, three have already been allocated to concessionaires, and approval for another project has been granted by the Federal Executive Council.
A document obtained from the Federal Ministry of Water Resources and Sanitation in Abuja, dated February 2024, revealed that three hydropower projects have been completed, while the remaining five are at various stages of completion.
The Minister of Water Resources and Sanitation, Prof. Joseph Utsev, presented this information to the National Council on Water Resources and Sanitation during its 30th regular meeting.
Given Nigeria’s challenges with power generation and supply, with electricity firms producing and distributing between 3,000MW and 4,000MW for a population exceeding 200 million, the country has been grappling with an insufficient power supply situation.
This predicament worsened in January due to the cessation of gas supply to gas-fired thermal power plants, stemming from the $1.3bn debt owed by these plants.
In response to the crisis, the Federal Government has directed investments toward hydropower plants, which do not rely on gas and instead operate through water-powered turbines.
The Minister of Water Resources and Sanitation highlighted significant progress in brown and green field hydropower development through public-private partnerships in the latest presentation from the ministry.
“We have conclusively concessioned some projects while still developing others through various PPP models itemised as follows: concession of the 40MW Dadinkowa Hydropower Project in Gombe State. We have attained financial closure and the plant is operational, thereby, stabilising the transmission voltage of the North-East of Nigeria.
“Concession of the 30MW Gurara Hydropower Plant in Kaduna State up to financial closure and the plant, which is under rehabilitation will commence commercial operation in the third quarter of the year 2024.
“Concession of the 40MW Kashimbila Hydropower Plant in Taraba State. The Federal Executive Council approval has been secured, the concession agreement executed and the commencement fee paid by the concessionaire to the special concession account as approved by the Federal Ministry of Finance Budget and National Planning,” Utsev said.
Outlining other projects, the minister said, “Development of 360MW Gurara Phase II Hydropower Project in Niger State (engineering, procurement and construction contract awarded and FEC approval for the concession of operation and maintenance of the power plant through PPP model secured).
“Development of 136 MW Manya and 182MW Bawaku Hydropower Projects in Taraba and Benue states respectively. This is at the procurement stage and ready to proceed to the Request for Proposal stage.
“Development of 460MW Katsina-Ala Hydropower Project in Benue. This is also at the procurement stage; proceeding to the request for proposal stage/negotiation with the proponent.
“Development of 20MW Farin Ruwa Hydropower Plant Project in Nasarawa State. Advertisement of request for qualification has been placed in the Federal Tenders Journal and national newspapers for value for money to the government.”
Aside from giving the power plants to concessionaires, in a bid to grow the country’s electricity output, the Federal Government had also been making efforts to sell some power plants to raise funds and boost power production.
For instance, on January 24, 2024, it was exclusively reported that the Federal Government, through the Bureau of Public Enterprises, was carrying out transactions for the sale of five power plants under the National Integrated Power Projects for about $1.15bn.
The report stated that though sources familiar with the development explained that the cost of the plants should exceed $5bn based on international benchmarks, they revealed that the BPE was planning to sell the facilities at a price that was a little above $1.1bn
The acting Director-General, BPE, Ignatius Ayewoh, had confirmed to our correspondent in a brief telephone conversation that “the transaction is ongoing,” adding that “it is not concluded”.
The BPE boss did not disclose the cost for the five plants, as he stated that he was in a meeting and would not be able to give additional details at the time.
However, impeccable sources at the bureau had named the five power plants to include the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.
Others include the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.
It was gathered that the Omotosho plant, which has four power-generating turbines, would be sold at about $85m; while the Olorunsogo NIPP with also four turbines would cost $170m.
