ICRC demands full capacity operation of 700MW Zungeru Hydropower Plant

The Director General of the ICRC, Dr. Jobson Oseodion Ewalefoh, made this known when he convened a stakeholders’ meeting, according to a statement shared with Nairametrics on Thursday by Ifeanyi Nwoko, ICRC Acting Head, Media and Publicity.

The stakeholders included the Federal Ministry of Power, the Federal Ministry of Water Resources and Sanitation, the Bureau of Public Enterprises (BPE), which acts as grantor under a power of attorney from the Ministry of Power, and the concessionaire, Penstock Limited.

Ewalefoh urged stakeholders to identify and address all issues hindering the plant’s optimal performance.

ICRC Demands Full Zungeru Capacity

According to the ICRC, the Zungeru Hydropower Project is currently generating about 350 megawatts to the National Grid, despite having a 700-megawatt capacity.

Addressing the stakeholders, Ewalefoh said the administration was earnestly working to resolve the country’s power challenges and that PPP assets such as Zungeru could not be allowed to operate below capacity.

• “President Bola Ahmed Tinubu’s promise to Nigerians that he will solve the power problem is not words for the sake of it. It is a statement he meant, and he has charged all of us to support him by playing our roles to deliver on this promise,” he said.
• “Our duty is to ensure sustainability, return on investment is achieved, services are delivered, and value for money is secured in the interest of the Nigerian people,” he said.

He further disclosed that in line with ICRC Act 2005, a final report will be submitted to the President in respect of Zungeru and other PPP-operated power plants, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.

He stated that signing a concession agreement is only the first step, while implementation of the terms in the PPP agreement is what delivers results.

He also urged stakeholders to note that in PPP arrangements, risks are shared and no party is doing the other a favour.

The ICRC said it and the stakeholders itemised all the legal and operational issues raised and agreed on a date for all parties to reconvene.

It also highlighted that the commission would review other existing PPP arrangements to ensure they perform optimally.

Zungeru Plant Handover and Financing

In 2024, the Federal Government formally handed over the operations of the $1.3 billion Zungeru Hydroelectric Power Plant to Penstock Limited.

• The announcement was made at the inaugural 2024 session of the National Council on Privatisation (NCP), held at the Presidential Villa in Abuja.
• The transition was projected to significantly increase Nigeria’s power generation capacity.
• The plant was expected to help meet the country’s expanding energy requirements.
• The 700-megawatt plant in Zungeru, central Nigeria, was facilitated by a $1.3 billion loan from China.

The Federal Government’s handover of the plant to a private operator was part of the PPP arrangement under which the project operates.

The ICRC has now called on stakeholders to address the legal and operational issues affecting the plant’s performance.

Zungeru’s Expected Power Contribution

The Zungeru plant is Nigeria’s largest hydropower project and ranks among the biggest power initiatives across Africa to secure a preferential loan facility from the Export-Import Bank (Exim Bank) of China.

• The project was expected to provide power generation, flood protection and water for irrigation.
• The 700-megawatt Zungeru hydropower plant was estimated to generate 2.64 billion kilowatt-hours (kWh) of electricity a year.
• Its projected annual generation was expected to meet close to 10% of Nigeria’s total domestic energy needs.

The project was also expected to contribute to flood protection and provide water for irrigation.

The ICRC’s intervention comes as the commission seeks to ensure that Zungeru and other PPP-operated power plants perform optimally and deliver the expected value to Nigerians.