Mainstream Energy Solutions Limited (MESL) has been selected as the preferred bidder by Nigeria’s National Council on Privatisation (NCP) for the concession of the Zungeru Hydroelectric Power Plant for a fee of $70 million per year for a period of 30 years.
The Council, chaired by Vice President Prof. Yemi Osibanjo, directed the Bureau of Public Enterprises (BPE) to begin negotiations and execution of the concession agreement with the preferred bidder at its second meeting for the year 2023, held on Tuesday, February 21, 2023 at the Presidential Villa, Aso Rock, Abuja.
According to the Bureau’s statement, MESL received 1142 points (94.3%) out of a total of 1,200 points, exceeding the minimum benchmark score of 75% of 1,200 points, having offered the highest concession fee of $USD70,000,000.25 to beat Africa Plus Partners Nigeria Limited Consortium, which received 742 points.
According to its website, the company has been in operation for 11 years and is chaired by Sani Bello, a businessman who owns a local oil and gas company.
The Zungeru Hydroelectric Power Station is a 700 megawatt hydroelectric power plant in Niger State, Nigeria. When finished, it will be Nigeria’s second-largest hydroelectric power station, after the 760 megawatt Kainji Hydroelectric Power Station.
The estimated cost of the project is 1.3 billion US dollars. The Federal Government of Nigeria contributes 25%, and the Chinese government contributes 75% through the Exim Bank of China. Construction began in 2013, and the power station is expected to improve Nigeria’s power supplies. The power plant is expected to start up by the end of March.
