FG hands over $1.3 billion Zungeru Hydroelectric power plant to private operator

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The Federal Government has formally handed over the operations of the $1.3 billion Zungeru Hydroelectric Power Plant to Penstock Limited. 

The announcement was made on Tuesday at the inaugural 2024 session of the National Council on Privatisation (NCP), held at the Presidential Villa in Abuja. 

It is projected that this transition will significantly increase Nigeria’s power generation capacity, thereby helping to meet the expanding energy requirements of the country. 

The newly built 700-megawatt plant in Zungeru, central Nigeria was facilitated by a $1.3 billion loan from China. 

The Concession Agreement was signed on December 13, 2023, by the Bureau of Public Enterprises (BPE) and Penstock Limited. 

Following Council approval, the Concessionaire fulfilled its obligation by paying 50% of the commencement fees on January 5, 2024. 

According to reports, the official handover ceremony took place on January 23, 2024, officially transferring the plant’s operations to Penstock Limited.