Friday, January 26, 2024

Nigerian company begins operating $1.3 billion Chinese-funded power plant

LAGOS, Jan 25 - Nigeria's Mainstream Energy, which already runs two of the country's biggest hydroelectric plants, has begun operating a new Chinese-funded facility, nearly a year after winning the concession, the utility said on Thursday.

Mainstream Energy Solution Ltd said its subsidiary Penstock Energy Ltd is running the new 700 megawatts plant in Zungeru, central Nigeria, which has been built with a $1.3 billion loan from China.

Nigeria's privatisation agency, the Bureau of Public Enterprises (BPE), last February awarded the concession to Mainstream Energy, which will pay the Nigerian government $70 million annually over three decades to operate the plant.

"This is where the real work starts in ensuring that the asset is managed in accordance with international standards," Mainstream Energy CEO Audu Lamu, said in a statement on Thursday.

Over the last decade, China has been active in Nigeria, providing finance through its development bank to build infrastructure including rail, airports, and power generation plants.

The Mainstream Energy-run Kainji and Jebba hydroelectric plants have a combined output of 1,338 megawatts which accounts for about 33% of Nigeria's current 4,000 megawatts power generation.

Much more is needed as millions of households and businesses suffer frequent blackouts. 

By Isaac Anyaogu, Reuters

Related stories: Video - Nigeria grapples with higher electricity prices amid supply constraints

Nigeria to sell power distribution firm over $130 million debt



No comments:

Post a Comment