Nigeria’s Zungeru hydropower station to be concessioned

The Federal Government of Nigeria, has announced plans concession the Zungeru hydropower station on the Kaduna river in the northern state of Niger.

Through the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE), expressions of interest from qualified technical advisers to provide transaction advisory services for the award of a concession for the 700 MW power plant has been invited.

Interested parties are expected to submit their bids by 31st march 2021. The transaction 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, policies that could impact the successful concession of the enterprise; Develop strategies that would attract interest from international investors; Develop 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 maximising private sector participation and develop post-concession exit strategy options for the enterprise.

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Bidders requirements

Bidders are required to have at least ten years of experience on similar projects in developing countries within the past ten years. Submission of Expressions of Interest should be accompanied by a Bank Draft for the Naira equivalent of US$ 2000 payable to the BPE. Expressions of Interest must be submitted in one original and five copies with one e-copy in a sealed package clearly marked “(Expression of Interest: TA for the Concession of Zungeru)”.

The Zungeru power station represents the largest hydroelectric project currently underway in Nigeria. The power station will yield 2,630 GWh per year, in a bid to boost grid-connected installed generation capacity. According to the BPE, only 14% of construction and preparation works remains to be completed. It is scheduled to be operational by December 2021.