In a significant development aimed at bolstering Nigeria’s power generation capacity, the Federal Government officially transferred the operations of the Zungeru Hydroelectric Power Plant to Penstock Limited on Tuesday. This move, initially anticipated to be in favor of Mainstream Energy Solutions Limited, which was selected in February 2023, marks a pivotal shift in the country’s efforts to meet its escalating energy demands.
According to a statement from Stanley Nkwocha, the Senior Special Assistant to the Vice President on Media and Communications, this transfer is poised to significantly enhance Nigeria’s energy production capabilities. The statement highlighted the government’s commitment to improving power supply across the nation, emphasizing the strategic importance of the Zungeru Hydroelectric Power Plant in achieving this goal.
The decision comes exactly one year after the National Council on Privatisation approved Mainstream Energy Solutions Limited as the preferred bidder for the concession of the Zungeru Hydroelectric Power Plant on February 23, 2023. Notably, Penstock Limited, the new concessionaire, was not among the three companies initially shortlisted in December 2022 to present concession proposals. This list included NSP Consortium, Mainstream Energy, and Africa Plus Partners, selected from eleven consortiums that had submitted Requests for Qualification.
Located in Niger State, on the upper and middle reaches of River Kaduna, the 740MW Zungeru power facility stands as the largest hydropower project in Nigeria. Despite its conception in 1982, the commencement of construction was delayed until 2013, following an agreement with two Chinese firms – China National Electrical Equipment Corporation and Sinohydro Consortium.
The unexpected shift in concessionaire from Mainstream Energy Solutions Limited to Penstock Limited has sparked interest and speculation among industry observers. However, the Federal Government’s decision is seen as a step forward in addressing the critical need for sustainable and reliable energy sources in Nigeria, amid growing concerns over the country’s energy infrastructure and supply challenges.
