Nigeria government signs off six hydro dams to private operators

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The Nigerian government, through the Ministry of Power, Works and Housing, has signed treaties to concede six hydro dams to private operators. This, according to the Minister in charge Mr. Babatunde Fashola, is a move towards the government’s new build, operate and transfer scheme.

According to reports, the move is aimed at energizing educational institutions and markets in the country. This, he says, is because the dams are government-led initiatives that are based on the rural electrification plan. These plans were approved by the President in 2016 for the purposes of providing access to power for rural dwellers and vulnerable members of the society.

As such, the government moved to make use of six small hydro dams which had been abandoned for decades. According to Mr. Fashola, there are currently 15 markets that are under contemplation with Sabon Gari , Ariaria and Sura markets in Aba, Kano and Lagos as flagships.

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He further explained that the government will utilize this opportunity such that it becomes possible to pass own renewable energy to the future generations. This, he says, is as the whole value chain and power privatization gradually evolves.

Last year, Mr. Fashola put the total percentage contribution of three hydro power generation companies (Gencos) in Nigeria – Kainji, Jebba, and Shiroro, to the country’s daily power generation at 26%. This, he says, is up 15% from the situation in 2015. He also said that in Abuja, the contributions of hydro power to Nigeria’s energy mix is down 11% to 74% in 2015.

Earlier on this year, Fashola revealed plans to start building a US $5.8Bn hydro-power plant in the eastern Mambila region. The construction was to take place following an agreement on loan terms with the Export-Import Bank of China.