AfrElec: Nigeria awards $1.3bn Zungeru hydroelectric plant contract to Mainstream Energy Solution

Nigeria has awarded a contract to operate and manage the 700-MW Zungeru hydroelectric power plant (HPP) to local energy firm Mainstream Energy Solution Ltd (MESL).

The Chinese-funded HPP, which is being built for $1.3bn in the northwestern state of Niger, is expected to provide a boost to Nigeria's erratic power supplies.

Zungeru, the biggest hydropower project under construction in Nigeria, was funded through a loan facility from the Export-Import Bank of China. The project will provide power generation, flood protection and water for irrigation.

According to the Bureau of Public Enterprises (BPE), MESL won the bid with a proposal to operate and manage the plant at a cost of $70mn per year for the next 30 years. The power plant is expected to begin supplying power by the end of March.

If you would like to read more about the key events shaping the African energy sector then please click here  for NewsBase's AfrElec Monitor.