FG opens bid for concession of the 700mw Zungeru Hydropower Plant
The Federal Government has opened a bid for the concession of the 700-megawatt Zungeru Hydropower Project Plant, located 77km downstream of the Shiroro Hydropower Project in Niger State.
In October 2022, the Bureau of Public Enterprises (BPE) released a final request for qualification for the project concession.
In July 2022, the BPE said that the National Council on Privatization approved the strategy and work plan to fast-track the concession of the Zungeru Hydroelectric Power Plant (ZHPP). The enterprise had also said that after the release of the RFQ, it would release a shortlist of prospective investors, issue of RFQ, evaluation of technical proposals; and a shortlist of prospective investors for financial bid opening, as well as, set a date for the financial bid opening, all within a short timeframe.
International competitive tender: In the requested document, the BPE cited that the transaction is an international competitive tender. The government needs a concessionaire to operate, manage, maintain, and transfer the ZHPP project for 30 years.
The concessionaire will ensure that the plant is run efficiently. Both parties will agree on financing and concession details.
According to the RFQ, the concession comes with commencement/upfront fees, an entry fee, and discounted annual concession fee of five years as well as a fixed annual concession fee, and royalty fees (percentage of revenue).
The deadline for the RFQ is November 17, and the deadline for the submission of responses by interested applicants is Thursday, November 24 at 2:00 PM Nigerian time.
All amounts and calculations in the RFQ shall be presented in the Nigerian Naira or its US Dollar equivalent, using the Nigerian Autonomous Foreign Exchange Rate (NAFEX).
Interested applicants must show evidence of a minimum asset base of N50 billion or its USD equivalent.
Applications must contain a description of the company/consortium stating ownership structure, business history, management/organizational structure, energy/hydropower development, operational capabilities, and any other relevant information.
Details must also include key management staff with relevant experience working on a similar project and at least 15 years in the relevant industry.
An additional 700 megawatts of electricity will be added to the national grid from the Zungeru Hydropower Plant as work on the project is being rounded off for inauguration in the first quarter of 2023.
The Zungeru Hydropower Plant project cost $1.2 billion to develop.
The Zungeru Dam is the first dam in the country constructed using the Roller Compacted Concrete (RCC) innovative dam design technology with the main benefit being a reduction in the overall construction period and embankment footprint when compared to a typical gravity dam.
