FG to concession Gurara Power Plant

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The Federal Ministry of Water Resources, said on Tuesday that negotiations were on to fully concession the 30MW Gurara Power Plant in Kaduna State. The News Agency of Nigeria reports that the project is expected to enhance power supply in the northwest part of the country.

Mr Benson Ajisegiri, Director, Water Supply and Public Private Partnership (PPP) in the ministry, who made the disclosure, said the Gurara dam would also provide sustainable, cost-effective and feasible option of boosting potable water supply to Abuja. The director disclosed that the Gurara dam also has 1,800 hectares of irrigation land that has been leased to 11 commercial farmers and individuals especially retirees.

Ajisegiri stressed that the retirees were considered to enable them go into full agricultural activities. ‘‘The dam is of utmost importance to the Federal Government, it will also provide electricity to the industrial area of Kaduna so that they can revive the industries there. ‘‘We are just about concluding that, by the time it comes up, you will discover that it can send power to that place and it will improve more industrial activities in Kaduna leading to more employment and so many things.”

According to him, the concession model adopted will allow one concessionaire to take custody of the project for a period of time as determined by the financial analysis. He added that the concessionaire will be responsible for generating hydro power and connecting it to the transmission network made available by the Transmission Company of Nigeria for distribution. The director said that the ministry is negotiating with the preferred and reserved bidder in line with the guidelines of the Infrastructure Concession Regulatory Commission (ICRC), to drive the processes to benefit Nigerians. He said the rule in the guidelines of ICRC stipulated that a Transaction Adviser be involved in the processes. He stressed that shortlisted firms had been given their Request for Proposal and analysed in choosing the preferred and reserved bidder.

Ajisegiri added that the processes are being spearheaded by the Project Delivery Team which consists of ICRC, Ministries of Water Resources, Environment and Power, Works and Housing, Nigeria Electricity Regulation Commission and Nigerian Bulk Electricity Trading Company.

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