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  • News - North Central - Benue
  • Updated: November 15, 2022

Benue: NCP Approves Governance Framework For $3Billion Power Plant

Benue: NCP Approves Governance Framework For $3Billion Power

The National Council on Privatization (NCP) on Tueday approved a governance framework for the development of a $3 billion plant in Makurdi, Benue State.

This was made at the meeting of the Council presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja

The development of the project, which emerged by way of an unsolicited proposal, will now proceed through the Public Private Partnership arrangement subject to compliance with all existing laws including the Public Procurement Act.

The novel project will be the first of its kind in the country is expected to provide 1,650 megawatts of power.

It is also expected to be the largest hydropower project in West Africa.

Under the NCP approved Governance Framework, a PPP procurement process is adopted whereby the proponent of the unsolicited proposal and other qualified interested investors would participate in a transparent bidding process.

Similarly, there is a Project Steering Committee of the NCP to provide leadership and high-level support to ensure the success of the transaction. 

The membership includes Power Minister as Chair, Water Resources Minister as Co-Chair, the BPE DG as Vice Chairman and other members drawn from the Ministries of Justice, Environment, Agriculture, representatives of the Infrastructure Concession Regulatory Commission, ICRC; NBET, and TCN.

Benue, Nasarawa and Taraba State Governments will also have members and the Director of Infrastructure & PPP at BPE will serve as Secretary.

A Transaction Adviser of international repute would also be engaged for the project to assist BPE.

The Council also received updates on the Zungeru Hydroelectric Power Plant and was notified of the investors’ interest in the concession of the plant.

The Infrastructure Concession Regulatory Commission (ICRC) has issued a Certificate of Compliance in respect of the Outline Business Case (OBC) submitted for the project.

The Project Delivery Team held a meeting in September 2022 and reviewed the documents after the Transaction Adviser submitted the documents, including the Strategy paper, Inception Report, and Request for Qualification.

Regarding updates on the situation with the Electricity Distribution Companies, DISCOs, Council was informed of the intervention and restructuring of Kano, Benin, Kaduna, Ibadan and Port Harcourt Discos.

The notification for change of directors of those Discos has now been fully filled to the Corporate Affairs Commission, reflecting the takeover of the 60% shares by the lenders in 3 out of the 5 Discos namely Kaduna, Kano and Port Harcourt.

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