FG announces preferred bidder for Zungeru hydropower plant concession

The federal government has approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the 700 megawatts Zungeru hydroelectric power plant.

Ibeh Chidi, head of public communications for the Bureau of Public Enterprises (BPE), in a statement on Wednesday, said MESL offered a concession fee of $70 million per year, for a period of 30 years.

“The national council on privatisation (NCP) has approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru hydroelectric power plant (ZHPP) for a fee of $70,000,000.25 per year, for a period of 30 years,” the statement reads.

According to the statement, the council — chaired by Vice-President Yemi Osibanjo — gave the approval at its 2nd meeting in 2023, held on Tuesday, at the presidential villa, Abuja.

The council further directed BPE to commence the negotiations and execution of the concession agreement with the preferred bidder.

“MESL (the preferred bidder) scored 1,142 marks (94.3 percent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 percent of 1,200 marks, having offered the highest concession fee of $70,000,000.25 to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points,” BPE said.

On June 30, 2021, the ministry of power granted an irreversible power of attorney to the BPE after the NCP approved the concession of the ZHPP on December 21, 2020.

Consequently, the BPE published the requests for qualifications (RfQ) for the concession of the power plant in three national newspapers on October 27, 2022, which at the close of the deadline, 11 firms submitted bids.

Three of them: Africa Plus Partners Nigeria Limited Consortium (APPNLC), Mainstream Energy Solutions Limited (MESL), and North-South Power Consortium (NSP), prequalified for the deal.

In another development, the NCP has approved a scheme of external restructuring proposed by Kepco Energy Resources Nigeria Limited (KERNL), the core investor in Egbin Power Plant.

“The approval is to enable the entity to boost its capacity to raise the required capital to double the existing capacity of the plant to 2,640MW,” BPE said.