Isaac Anumihe, Abuja
Mainstream Energy Solutions (MESL), (owners of Kainji and Jebba hydro power) and Andritz Hydro of Austria, yesterday signed a euros 32 million contract to rehabilitate a 2G6 unit of Jebba Hydro Plant burnt down over 40 years ago.
Speaking during the signing, in Abuja,, Managing Director of MESL, Engineer Lamu Audu, said that the unit was burnt down 40 years ago. After several efforts by the Federal Government to fix it failed, Mainstream inherited it after it was concessioned.
“Now, as part of our capacity recovery programme we have to recover 96.4 megawatts of generating capacity of that unit to add to the national grid.
“The contract duration is two years and the cost is €32 million. The funding is coming through loans. We are taking commercial loans from Nigerian banks, about three banks are coming together to support us.
In 2017, we signed the contract for the rehabilitation of Kainji which is over 80mw which will be commissioned in the first quarter of this year.
“The project is to be completed by the second quarter of 2022 and will cost approximately €32 million. This is to be financed through commercial loans. I said estimate because hydro is such a big project because once the project starts you will discover one or two things,” he said.
In his remarks, the Director General of Bureau of Public Enterprises (BPE), Mr Alex Okoh said that Mainstream has met all the key performance targets of the privatization agreement, adding that BPE was willing to support the power plant.
“We are very pleased to note that the key programme target that were set in the performance agreement and privatisation agreement are being met by Mainstream Energy Solutions and we see the occasion of today as one of the milestones geared towards the achievements of the turnaround and rehabilitation of two plants,” he said.