Mainstream Energy Solution Limited and RusHydro International AG, has reached an agreement to commence the rehabilitation of Kainji and Jebba hydropower plants, worth $452 million, about N72.32 billion. The electricity supply capacity is expected to increase by 1,300 megawatts (MW).
This is in line with the five-year cooperation agreement, reached between Mainstream and RusHydro in 2013 with regard to the modernisation of the Kainji and Jebba hydropower plants in Nigeria.
Mainstream Energy, in a statement obtained from RusHydo’s website, noted that its Board of Directors has approved the Capacity Recovery Plan (CRP) prepared by RusHydro, for the rehabilitation of the Kainji and Jebba hydropower plants in Nigeria.
Earlier, Mainstream Energy had said it will spend $452 million for the project and would pay RusHydro a fixed fee for rendered services and additional remuneration for organisation of tenders.
Mainstream Energy in its concession conditions said, provide for rehabilitation and modernisation of the power plants and bringing their capacity back to the design level.
According to the statement, the next step for RusHydro International will be to assist Mainstream Energy Solutions to prepare tender documentation and commence procurement (tender) procedures for the supply of equipment, construction, and assembly work.
Mainstream said the engineering services provided by RusHydro International AG include development of project documentation, organisation of tenders for equipment supply as well as for installation and construction works and also consulting on operation and maintenance of the plants.
The firm said, “RusHydro International AG implements the project in partnership with Institute Hydroproject (RusHydro Group), Pöyry and Mott MacDonald.”
The Kainji and Jebba hydropower plants are located on the River Niger and have installed capacity of 750 mega watts (MW) and 578 MW, respectively. Currently available capacity of the plants is substantially below their installed capacity.
RusHydro International AG had in April, declared that it has completed feasibility studies for the reconstruction of both dams.
In August 2013, Guaranty Trust Bank Plc and multilateral financial institution, Africa Finance Corporation, AFC, provided a $170 million (N27.2 billion) facility to Mainstream Energy Solutions Limited Consortium, MESL, for the acquisition of Kainji Power station, one of the former assets of the Power Holding Company of Nigeria, PHCN.
Chairman, MESL, Mr. Sani Bello, said at the signing ceremony that the facility is for the purpose of part- financing the concession of Jebba Power station and Kainji Hydro Electric Plc.