There is now more hopes for better electricity supply in Nigeria. Federal Government (FG) further shows its resolve to end epileptic power supply and handover the dilapidated Power holding Company of Nigeria (PHCN) firms to better organised private sector when it gave a big nod to a deal for Chinese state companies to build a $1.3 billion power plant.
FG gave nod to China’s proposal to build the plant after it has been pending for about three decades.
With the privatization process of the power sector nearing completion, the finance ministry revealed on Sunday that a loan from China’s Eximbank will facilitate payment for 75 percent of the planned 700 megawatt Zungeru hydro-electric power plant and the rest is to be completed with cash.
The plant, to be finished in four years, is expected to boost to the country’s current 4,500 megawatt electricity capacity.
The project to build a hydro plant in Zungeru, Niger state, was initiated about 30 years ago but just getting kicked off this year
“This project will create thousands of jobs for Nigerian engineers, technicians and artisans during the construction phase … It will also boost the economy,” Nigeria’s Finance Minister Ngozi Okonjo-Iweala said in a statement.
Experts still wonder why despite Nigeria having world’s ninth largest gas reserves generates a meagre tenth of the amount of electricity as South Africa for its large population which outsizes that of South Africa.
There are fears this project does not get stalled like previous ones that have gulped millions of Naira in the country.
Prime Energy Reports 