TheCable

The senate committee on power and the federal ministry of power have agreed on the concession of the 700 megawatts Zungeru hydroelectric power project.

In February this year, TheCable reported that the federal government had approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the power plant concession.

MESL had offered a fee of $70 million per year, for a period of 30 years, to secure the deal.

According to a statement, Abubakar Aliyu, the minister of power, addressed the senate committee on power, chaired by Gabriel Suswam, on Wednesday in Abuja.

The minister said the Zungeru hydroelectric dam was financed jointly by China Exim Bank and the Nigerian government.

“All the best practices and regulations have been complied with to ensure that Nigeria is not shortchanged in the concession agreement,” he said.

Aliyu also emphasised that the hydroelectric infrastructure is still owned by the federal government and the concession is only for a period of 30 years.

He said government has been diligently addressing all the challenges facing the Zungeru power project to make it secure and functional for more electricity supply, so as to meet the energy demands of Nigerians.

Both parties, therefore, agreed that the deal was in the best interest of the country.

The committee also advised that public enlightenment on the happenings in the power sector should be carried out.

In addition, lawmakers who spoke during the hearing, supported the federal government’s various interventions in the power sector.

Adamu Aliero, senator representing Kebbi central and member of the committee, said the concession was in the best interest of Nigerians.

Meanwhile, earlier in the week, the minister met with Abubakar Bello, the governor of Niger state, where they discussed issues relating to settlements for communities affected by the power project.

Aliyu urged electricity distribution companies to improve their performance by ensuring that customers are at the centre of their services.

He also encouraged the companies to focus on improving their facilities.

“The federal government will continue to support the electricity distribution companies to ensure that Nigerians enjoy stable electricity supply,” he added.