Nigeria, China Sign $1.293bn Zungeru Power Plant Deal

The Federal Government and China Saturday signed approximately $1.293
billion agreement on a major power project, the Zungeru Hydroelectric
Power Project, in a boost to their mutual cooperation.
Located in Zungeru, a local community in Niger State, 150 km away from
Abuja, the Zungeru Hydroelectric Power Project is expected to generate
700 megawatts of power for Nigeria, Minister of Finance Ngozi
Okonjo-Iweala said at the signing ceremony.
Agency reports quoted the minister as saying that the contract awarded
to two Chinese electric power firms, China National Electrical
Equipment Corporation (CNEEC) and Sinohydro Consortium, was to be
executed through a loan facility by the EximBank of China, with
preferential conditions.
The Eximbank would bear 75 percent of the cost of the project while a
counterpart funding balance of $309 million had been made available by
Nigeria.
"The project will create thousands of jobs during the construction
phase both directly and indirectly. A lot of Nigerian technicians,
engineers and artisans and others will be employed during the
construction phase," added Okonjo-Iweala, who is also the Coordinating
Minister for the economy.
She expressed delight at the progress of work at the project site,
noting the two Chinese contractors are expected to finish work in
2018.
Chinese Ambassador to Nigeria Deng Boqing, who signed the agreement on
behalf of the East Asian nation's government, said the Zungeru
Hydroelectric Power Project was significant to the Nigerian people,
because it will contribute greatly to economic growth and efforts to
meet growing power demand as the country ushers in a new period of
industrialisation and urbanisation.
"China and Nigeria share the same dream, that is to bring prosperity
and stability to the people, and these visions have been fully
communicated by the leaders of our two countries when President
Goodluck Jonathan visited China in July 2013.
"The construction of Zungeru Hydroelectric Power Station is one of the
many consensuses reached by the presidents of our two countries.
Today, the signing ceremony is the fruit of that state visit and we
believe more concrete steps will be taken to further boost our already
flourishing cooperation and enrich our strategic partnership," Deng
said.
He said the project, when completed, would also help bring the
much-needed electricity for economic transformation toward achieving
Nigeria's "2020:20 Vision".
"The contractors of this project, Sinohydro Corporation and China
National Electrical Equipment Corporation (CNEEC), both reputed for
professional experience and cutting-edge expertise, are top-ranking
companies in the field of engineering and construction. I have great
expectations for the two companies. It is their responsibility to
ensure that all works are done with good quality as well as in a
timely manner," the Chinese envoy added.
The Zungeru Hydroelectric Power Project was conceived in 1982, but due
to constraints of funds, construction work could not commence.
The Federal Government approved the project in 2012 in order to obtain
more electricity, help maintain appropriate power prices and promote
economic growth and development of the country.
In May, President Jonathan said the $1.293 billion power project would
be the largest to be built by his administration.