Nigeria and China Sign $1.2 Bn Agreement to Build Power Plant

Nigeria and China have signed a $1.293 billion agreement to develop the Zungeru Hydroelectric Power Project in Niger State. The plant is expected to generate 700 Megawatts (MW) of electricity. The contract was awarded to two Chinese electric power firms, China National Electrical Equipment Corporation (CNEEC) and Sinohydro Consortium, and they got a loan facility by the EximBank of China, with preferential conditions. The Eximbank would bear 75 percent of the cost of the project and Nigeria will provide $309 million. “The project will create thousands of jobs during the construction phase both directly and indirectly. A lot of Nigerian technicians, engineers and artisans and others will be employed during the construction phase,” said Nigeria’s Finance Minister, Dr. Ngozi Okonjo-Iweala, who signed on behalf of the Nigerian Government. Chinese Ambassador in Nigeria Deng Boqing, who signed the agreement on behalf of the Chinese Government said, “The Zungeru Hydroelectric Power Project was significant to the Nigerian people, because it will contribute greatly to economic growth, meeting growing power demand as the West African nation ushers in a new period of industrialization and urbanization.” “China and Nigerian share the same dream, that is to bring prosperity and stability to the people, and these visions have been fully communicated by the leaders of our two countries when President Goodluck Jonathan visited China in July 2013.” “The construction of Zungeru Hydroelectric Power Station is one of the many consensuses reached by the presidents of our two countries. Today, the signing ceremony is the fruit of that state visit and we believe more concrete steps will be taken to further boost our already flourishing cooperation and enrich our strategic partnership.” “The contractors of this project, Sinohydro Corporation and China National Electrical Equipment Corporation (CNEEC) both reputed for professional experience and cutting-edge expertise, are top-ranking companies in the field of engineering and construction. I have great expectations for the two companies. It is their responsibility to ensure that all works are done with good quality as well as in a timely manner,” the Chinese envoy added.