The National Council on Privatisation (NCP) has approved a governance framework for the development of a $3 billion hydro-power plant in Makurdi, Benue State under the public-private partnership arrangement.
The approval was announced at a meeting of the Council presided over by the vice president, Prof Yemi Osinbajo, yesterday, at the presidential villa, Abuja.
Spokesman for the vice president, Mr. Laolu Akande, said in a statement that with the NCP’s nod, the development of the project, which emerged by way of an unsolicited proposal, will proceed through the public private partnership arrangement subject to compliance with all the existing laws including the Public Procurement Act.
“The novel project will be the first of its kind in the country and is expected to provide 1,650 megawatts of power,” he said.
Akande explained that 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.
He also announced that 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 the minister of power and chairman, with the minister of water resources as co-chairman; director general, Bureau of Public Enterprises (BPE) as vice chairman,
The other members are drawn from the ministries of justice, environment, agriculture, representatives of the Infrastructure Concession Regulatory Commission (ICRC); Nigerian Bulk Electricity Trading (NBET) Plc, and Transmission Company of Nigeria (TCN).
The membership has also been enlarged to include Benue, Nasarawa and Taraba state governments
A transaction adviser of international repute would also be engaged for the project to assist BPE.
The statement also disclosed that the council received updates on the Zungeru Hydroelectric Power Plant and was notified of the investors’ interest in the concession of the plant.
The meeting had in attendance council members including federal ministers including the minister of industry, trade and investment, Mr. Adeniyi Adebayo; minister of power, Mr. Abubakar Aliyu; minister of agriculture and rural development, Dr. Mohammad Mahmood Abubakar; director general, BPE, Mr. Alex Okoh; representatives of federal ministries, heads of relevant MDAs and other senior government officials.
