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FEC approves Management Concession for Gurara II power plant

Gurara II Multipurpose Dam & Hydro Power Plant

Photo: Afrik21

The Federal Executive Council (FEC) has approved an Operation and Management concession for the 360-Megawatt Gurara II Multipurpose Dam & Hydro-Power Plant and the 40-Megawatt Kashimbilla-Hydro Power Plant, under a Public-Private Partnership model.

The move by the FEC, which followed the regulatory guidance of the Infrastructure Concession Regulatory Commission (ICRC), also saw the approval for the concession of a Secure E-ticketing Solutions for the Lagos-Ibadan Rail Service and the Warri-Itakpe Rail Service as well as the Device Management System – a project by the Nigerian Communications Commission (NCC).

The FEC approvals are expected to bring about the generation of 400 megawatts of electricity, infusion of private sector funds into the nation’s economic and infrastructure development and a total revenue generation of N647.7 billion.

It will also help in the fight against crime, terrorism and insecurity while improving the effectiveness of the rail services in the specified routes.

The 360MW Gurara II HPP is a greenfield project that will adopt a Build, Operation, Maintenance and Transfer PPP model to be executed by Messrs. CGCOC Group Co. Limited under an Engineering Procurement and Construction (EPC) contract for a concession period of 30 years.

The dam, hydro-power plant, and other complementary infrastructure will be executed within a concession period of 30 years and an expected total revenue generation of $875 million within the period.

Both the Gurara and the Kashimbilla HPP projects will bring about Improved living conditions and employment, Promotion of agriculture through irrigation, reduction of Greenhouse Gases as well as foreign exchange preservation.

For the Kashimbilla 40MW HPP, the FEC’s approval is for the operations and maintenance of the Hydro-power Plant.

One of the primary objectives of the dam is to mitigate the environmental disaster associated with the overflow of flood waters in various downstream states, such as Taraba, Benue, Kogi, Delta, Cross Rivers and Bayelsa – potentially affecting more than 6 million people.

The hydro-power component of the Dam will also aid in ecological flood control, water supply for a population of about 400,000 people, irrigation potentials for about 3,000 hectares of arable land for farming as well as fishing to support food security.

Project cost is put at N7.68 billion approved for a concession period of 15 years. It is projected to yield a total revenue of N85 billion.

The Device Management System, which has the NCC as grantor, seeks to provide a single control point for comprehensive device management for mobile communication devices in Nigeria.

Specifically, the proposed DMS will support capabilities for tracking of mobile communication devices to eliminate fake and substandard devices, provide detailed statistical information for stakeholders use, and support the fight against cybercrime and insecurity.

It adopts a Design, Build, Finance, Operate, Maintain and Manage PPP model for a concession period of 10 years at a cost of $26 million, and a total revenue generation of N86.6 billion.

For the Lagos-Ibadan E-ticketing and the Warri-Itakpe concessions, they adopt a Design, Finance, Build, Operate and Manage a Secure Ticketing Solution (Hardware and Software) for the Passengers’ Stations.

The solution seeks to ensure the provision of electronic tickets (e-tickets) and manual tickets, provision of adequate infrastructural security, deployment of adequate maintenance regime, provision of adequate training regime and provision of value-for-money throughout the life of the solution.

The Lagos-Ibadan concession was approved at a cost of N1,100,000,000 (N1.1 billion), granted to Messers Global Software Digital Solutions Ltd (GSDS) and Datamataic Global Services Ltd (DGS) as technical partner, for a period of 10 years.

A total of N112.8 billion will be generated from this project.

The Warri-Itakpe counterpart will be executed at the cost of N860,806,423, granted to Fane International Consult Limited and Artificial Intelligence Technologies Limited (AITL) as technical partner, also for a 10-year term.
Revenue generation is estimated at N63.3 billion.

Writing by Biodun Dare; Editing by Oluwaseyi Ajibade and Tony Okerafor