The concessionaire would give FG $70 million a year for the next thirty years to manage the facility, according to the Presidency.
According to an estimate by Channels Television, the Federal Government will receive a total of $2.1 trillion over the following 30 years from the concession of the 700 MW Zungeru hydropower facility.
In a statement our correspondent was able to receive on Tuesday, Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications (Office of the Vice President), stated that the concessionaire would give FG $70 million annually for the next three decades in exchange for administering the complex.
As a result, the projected revenue for the following 30 years is now $2.1 trillion.
After the project’s commencement fee was paid on January 5, 2024, ownership of the Zungeru Hydroelectric Power Plant was transferred to Penstock Limited on January 23, 2024.
Nkwocha claims that the agreement was revealed on Tuesday at the Presidential Villa in Abuja during the National Council on Privatization (NCP) inaugural meeting for 2024.
The Bureau of Public Enterprises (BPE) and Penstock Limited signed the Concession Agreement on December 13, 2023, the NCP said during the meeting.
It said that on January 5, 2024, the Concessionaire paid 50% of the beginning fees in order to satisfy its duty, as approved by the Council.
Penstock Energy Ltd. is a division of Mainstream Energy Solution Ltd., which is the concessionaire of the 578.4MW and 760MW installed capacities of the Kainji and Jebba Hydro Power Plants (HPP).
With a startling $1.3 billion loan from China, Penstock Energy Limited funded the 700 MW Zungeru hydropower station, the second largest hydropower plant in Nigeria.