The Nigerian Government has signed two separate agreements with Chinese firms SINO Hydro and Gezhouba Group to construct hydro power plants in the country.
State Power minister Zainab Kuchi was quoted by allAfrica as saying that the companies would develop a 3,050MW station in Mambilla, Taraba and a 700MW station in Zungeru, Niger.
Kuchi said that China’s Export-Import Bank will extend 75% of the Zungeru project’s financing, while Nigeria will offer 25%, entailing $309m.
Exim Bank of China would fund 85% of the $3.2bn Mambilla project with the Government and other private equity funds contributing to 15%.
The minister expects the completion of the two plants by 2014 as the country seeks more investments in the power industry.
Nigeria is presently generating 5,000MW of power but demand considerably exceeds output by more than double, reported Bloomberg.