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FG Forecasts Revenue Of $875million From Power Projects
The sale of two power projects, the e-ticketing of two rail routes, and the Device Management System are expected to bring in $875 million for the federal government.
The two power projects, the 40 MegaWatt Kashimbilla Hydro Power Plant and the 360 MegaWatt Gurara II Multipurpose Dam and Hydro Power Plant, would be concessioned under a Public Private Partnership model for operation and management.
Secure E-ticketing Solutions for the Lagos-Ibadan and Warri-Itakpe rail services, as well as the Device Management System, a project created by the Nigerian Communications Commission, are additional projects up for concession.
According to a statement issued by the ICRC acting spokesperson, Ifeanyi Nwoko, on Friday, in Abuja, the projects will be under the regulatory guidance of the Infrastructure Concession Regulatory Commission.
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The 360MW Gurara II HPP, a greenfield project will adopt an operation, maintenance and transfer PPP model under an Engineering Procurement and Construction contract for a concession period of 30 years that will be executed by Messrs CGCOC Group Co. Limited.
The spokesperson noted further that approval for the Kashimbilla 40MW HPP has been granted for the operations and maintenance of the Hydropower Plant by Messrs Mainstream Energy Solutions/KEPL Consortium-Concessionaire/Technical Partner.
Part of the statement in that regard read, “Both the Gurara and the Kashimbilla HPP projects will bring about Improved living conditions and employment, promotion of agriculture through irrigation, reduction of Greenhouse Gases as well as foreign exchange preservation.
“One of the primary objectives of the dam is to mitigate the environmental disaster associated with overflow of flood water in various downstream states of Taraba, Benue, Kogi, Delta, Cross River and Bayelsa, potentially affecting more than 6 million people.
“The hydropower component of the Dam will also aid in ecological flood control, water supply for a population of about 400,000 people, irrigation potentials for about 3,000 hectares of arable land for farming as well as fishing to support food security.
“The hydropower component of the Dam will also aid in ecological flood control, water supply for a population of about 400,000 people, irrigation potentials for about 3,000 hectares of arable land for farming as well as fishing to support food security.
“The dam, hydropower plant, and other complementary infrastructure will be executed within a concession period of 30 years and an expected total revenue generation of $875million USD within the period, while project cost for Kashimbilla HPP, is put at N7.68 billion approved for a concession period of 15 years. It will yield a total revenue of N85 billion,” the statement explained.
