NCP okays governance framework for $3bn hydropower plant in Benue

The National Council on Privatisation (NCP) has approved a governance framework for the development of a $3 billion hydropower plant in Makurdi, Benue state.

In a statement on Tuesday, Laolu Akande, spokesperson to Vice-President Yemi Osinbajo, said the approval was given at the NCP meeting chaired by the VP at the presidential villa in Abuja.

Akande said the Benue plant would be the largest hydropower project in West Africa.

He added that the project would be the first of its kind in the country, expected to provide 1,650 megawatts of power.

Akande said with the NCP’s nod, the development of the project, which emerged by way of an unsolicited proposal, will now proceed through the public-private partnership (PPP) arrangement subject to compliance with all existing laws, including the public procurement act.

He also said a project steering committee of the NCP would provide leadership and high-level support to ensure the successful transaction.

“The membership includes the power minister as chair, the water resources minister as co-chair, the BPE DG as vice chairman and other members drawn from the ministries of justice, environment, agriculture, representatives of the Infrastructure Concession Regulatory Commission, ICRC; NBET, and TCN,” the statement reads.

“Benue, Nasarawa and Taraba state governments will also have members, and the director of infrastructure & PPP at BPE will serve as secretary.

“A transaction adviser of international repute would also be engaged for the project to assist BPE.”

Akande said the council also received updates on the Zungeru Hydroelectric Power Plant and was notified of the investors’ interest in the concession of the plant.

He said the Infrastructure Concession Regulatory Commission (ICRC) had issued a certificate of compliance in respect of the outline business case (OBC) submitted for the project.

He said the project delivery team held a meeting in September 2022 and reviewed the documents after the transaction adviser submitted the documents, including the strategy paper, inception report, and request for qualification.

Regarding updates on the situation with the electricity distribution companies, Akande said NCP was informed of the intervention and restructuring of Kano, Benin, Kaduna, Ibadan and Port Harcourt DisCos.

Akande said the notification for change of directors of those DisCos had been fully filled to the Corporate Affairs Commission (CAC), reflecting the takeover of the 60 percent shares by the lenders in three out of the five DisCos, namely Kaduna, Kano and Port Harcourt.

“The filings for Ibadan and Benin are ongoing and should be completed soon, the council was informed,” the statement adds.

“In addition, AMCON issued an advert last week for the sale of 60 percent of the shares of Ibadan Disco.”

He said the NCP had also approved the appointment of Sutura Aisha Bello as a director for infrastructure and PPP in the Bureau of Public Enterprises (BPE).