The Minister of Power, Works and Housing, Mr. Babatunde Fashola, while signing the contract agreement for the joint venture with three Chinese firms on Friday, said it marked a new dawn for Nigeria’s power sector.
Fashola lauded President Muhammadu Buhari for executing the project which has been on the drawing board for about 40 years.
The project is a new dawn for Nigeria’s power diversity and energy mix. This project will give us the opportunity for energy security and enable us to comply with our Paris Climate Change agreement because it will be delivering renewable energy.
The $5.79bn project is expected to be completed in six years. The funding consists of $4.92bn from the Chinese Exim Bank and other Chinese lenders are expected to provide 85 percent of the contract sum amounting to $4.92 billion. The federal government will put forward 15 percent amounting to $868.87 million.
The scope of work for the project includes four large dams (Nya, Sumsum, Nghu and Api Weir), and two underground powerhouses 12 units of 250mw each.
The other project components include two units of 330KV of 700km transmission lines to Makurdi and Jalingo, 120km of access roads connecting the project site and nearby communities and the resettlement of an estimated 100,000 impacted persons.
While Fashola signed the agreements on behalf of the federal government, the representatives of the Chinese firms, who signed for their organizations, include Yong Jun for China Gezhouba Corporation, Gan Yongskiv for Sinohydro Corporation Ltd and Ye Shijing for CGOC Group Ltd.
The Federal Executive Council (FEC) had on August 30, 2017, approved the award of the turnkey contracts of the project to Messrs China Gezhouba Corporation, Sinohydro Corporation Ltd and CGOC Group Ltd.