A Chinese consortium CNEEC-Sinohydro formed to develop 700MW Zungeru hydroelectric power plant is gearing up to commence the project on 28 May 2013.
The project located in Niger State in Nigeria has secured finds from federal government and Exim Bank of China with latter contributing three-fourth of the investment, while the government puts in the remaining. Nigeria is reportedly investing $309m.
Earlier this year, Nigeria and Exim Bank of China signed an agreement for the funds related to the project.
At the contract signing agreement, Nigeria Minister of State for Power Hajia Zainab Kuchi said that it is awaiting finalization from Ministry of Finance of the 75% funding from the Exim Bank to commence the project.
"The feasibility studies and engineering design was reviewed in 2008 by Coyne et Bellier and a report submitted which recommended that an installed capacity of 700MW consisting of 4X175MW plants units representing downward review of the initial capacity of 950MW should be adopted, the recommendation was accepted by the ministry," Kuchi said then.
CNEEC-Sinohydro chief representative Ju Shiquan was quoted by Thisdaylive.com saying that the group has ensured the progress of the project without any hassle.
The consortium anticipates to repay the credit facility through revenues generated by the project following its completion.