The Federal Government has officially transferred the operations of the Zungeru Hydroelectric Power Plant to Penstock Limited.
This move is expected to “boost Nigeria’s power generation capacity and contribute significantly to meeting the country’s growing energy demands.
The Concession Agreement was signed on December 13, 2023, by the Bureau of Public Enterprises (BPE) and Penstock Limited.
Following the Council approval, the Concessionaire fulfilled its obligation by paying 50% of the commencement fees on January 5, 2024.
The 740MW Zungeru power facility located at the upper and middle reaches of River Kaduna in Niger State is the largest hydropower project in Nigeria.
The facility is expected to produce 2.64bn kWh of electricity annually and meet around 10% of Nigeria’s total domestic energy requirements.
The Zungeru hydropower project will provide power generation, flood protection, and water for irrigation. The project includes a roller-concrete compacted dam, an intake tower and diversion tunnel, an underground powerhouse, a power transmission line, and an access road.
The project is expected to provide employment opportunities to more than 2,000 people during the peak construction period.