PPP: ICRC moves to optimise 700MW Zungeru hydropower

Engages Power and Water ministries, BPE, others

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The Infrastructure Concession Regulatory Commission (ICRC) has stepped up its regulatory oversight on the $1.3 billion, 700-megawatt Zungeru Hydropower Project for optimisation.

Director General of the Commission Jobson Ewalefoh, speaking during a stakeholders’ meeting convened in Abuja on Thursday, in conjunction with the Federal Ministry of Power, the Federal Ministry of Water Resources and Sanitation, and the Bureau of Public Enterprises (BPE), indicated that the action is in a bid to optimise the performance of the plant, which is operated under a Public-Private Partnership (PPP) arrangement and currently generating about 350 megawatts to the national grid and in line with the charge by President Bola Ahmed Tinubu to unlock the potential of Nigeria’s power sector.

Further addressing the stakeholders, Dr Ewalefoh highlighted that with the administration earnestly working to resolve the country’s power challenges, PPP assets such as Zungeru could not be allowed to operate below capacity. He said the meeting was called to identify and address all issues hindering the plant’s optimal performance, and in line with the charge by President Bola Ahmed Tinubu, to unlock the potential of Nigeria’s power sector.

“President Bola Ahmed Tinubu’s promise to Nigerians that he will solve the power problem is not words for the sake of it. It is a statement he meant, and he has charged all of us to support him by playing our roles to deliver on this promise,” he said.

Dr Ewalefoh, however, explained that the ICRC was established as a regulator of PPPs, and is therefore not a party to any PPP agreement, but ensures compliance of both the grantor and the concessionaire with the terms and obligations as contained in the agreement.

Section 20 of the ICRC Act states:
“The Commission shall: take custody of every concession agreement made under this Act and monitor compliance with the terms and conditions of such agreement;
should ensure efficient execution of any concession agreement or contract entered into by the Government;
ensure compliance with the provisions of this Act;
perform such other duties as may be directed by the President, from time to time and as are necessary or expedient to ensure the efficient performance of the function of the Commission under this Act.”

“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results. In PPP, risks are shared, and no party is doing the other a favour. Our duty is to ensure sustainability, return on investment is achieved, services are delivered, and value for money is secured in the interest of the Nigerian people,” Ewalefoh said.

He further disclosed that the ICRC Act 2005 defines the Commission’s reporting line to the President, adding that similar compliance reviews would be carried out on other PPP-operated power plants, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila, and a final report submitted to the President.

The DG pledged the Commission’s commitment to working with all stakeholders, particularly the Federal Ministry of Power, to ensure that every PPP power project contributes optimally to meeting the energy needs of Nigerians.

He added that the ICRC is equally committed to reviewing other existing PPP arrangements to ensure they perform optimally, stressing that efficiency is a key reason government assets are handed over to the private sector, and the Commission must ensure that efficiency is achieved through regulatory monitoring and compliance.

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