The government of Nigeria has signed an agreement with a consortium of China National Electric and Engineering Corporation (CNEEC) and SinoHydro for the construction of the 700MW Zungeru hydro-electric power project.
Exim Bank of China is funding 75% of the total project cost of $1.3bn, while the remaining 25% is being funded by the Nigerian government.
The plant, which is likely to be completed in four years, was captured in the 2012-2014 medium term borrowing plan approved by the National Assembly.
Nigeria’s finance minister Ngozi Okonjo-Iweala told Reuters that this project is likely to create thousands of jobs for Nigerian engineers, technicians and artisans during the construction phase, boosting the local economy.
The project, which will be a boost to the country’s current 4.5GW electricity capacity, is part of the government’s efforts to curb electricity shortages in the country.