The National Council on Privatisation (NCP) has announced Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant (ZHPP) for a fee of $70,000.25 per year for a period of 30 years.
The council gave the approval at its 2nd meeting for 2023, according to a statement that was issued by the Bureau of Public Enterprises (BPE) today. The meeting was held at the presidential villa, Abuja.
In a related development, the council on privatization has approved a scheme of external restructuring proposed by KEPCO Energy Resources Nigeria Limited (KERNL), the core Investor in Egbin Power Plant.
The approval is to enable the entity boost its capacity to raise the required capital to double the existing capacity of the plant to 2,640MW.
The council meeting which was chaired by Vice President Yemi Osinbajo directed the BPE to commence the negotiations and execution of the concession agreement with the preferred bidder.
MESL (the preferred bidder) scored 1,142 marks (94.3 percent) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75 percent of 1,200 marks, having offered the highest concession fee of $70,000.25 to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points.
The council at its 7th meeting for the year 2020, held in December, approved the concession of the ZHPP, consequent on which the Federal Ministry of Power donated an irrevocable power of attorney to the BPE on June 30, 2021 for the implementation of the NCP’s decision.
Based on this, the BPE published the Requests for Qualifications (RfQ) for the concession of the power plant in three national newspapers on October 27, 2022 which at the close of the deadline, 11 firms submitted bids.
Three of them – Africa Plus Partners Nigeria Limited Consortium (APPNLC), Mainstream Energy Solutions Limited (MESL), and North-South Power Consortium (NSP) were prequalified.
