Nigeria plans to concession the 700 MW Zungeru hydroelectric plant that is been built on the Kaduna river in the northern state of Niger, and which is set to become operational by the end of 2021.
It has therefore through the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE), invited expressions of interest from qualified technical advisers to provide transaction advisory services for the award of the concession.
Interested parties are expected to submit their bids by 31st march 2021.
Responsibilities of the selected advisor
Among other responsibilities the selected advisor will be required to carry out a due diligence review of the operating company and the activities necessary to prepare it for the subsequent concession transaction; review all relevant laws, regulations, and policies that could impact the successful concession of the enterprise.
Develop strategies that would attract interest from international investors, and detailed concession plans for the enterprise along the lines of the strategic concession criteria determined by the NCP; conduct the marketing and bidding processes necessary for maximizing private sector participation and develop post-concussion exit strategy options for the enterprise.
Overview of Zungeru hydropower plant project
Executed by a consortium of China National Electric Engineering Company (CNEEC) and Sinohydro, the project is so far over 87% complete. Its main components include a 101 m-high, 1090 m-wide roller-compacted concrete (RCC) gravity dam, a clay core rockfill dam, an underground powerhouse equipped with four 175 MW units, a tailrace channel, and two switchyards on both banks of the river.
The project, which upon completion will be the second biggest hydroelectric dam in the West African Country after the 760 MW Kainji hydropower dam, is designed to generate 2630 GWh/year, equivalent to around 10% of the country’s supply requirements.
In addition to electricity generation, the facility will also provide flood control, irrigation, and water supply.