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The ICRC is reviewing the $1.3bn Zungeru Hydropower Project, which has an installed capacity of 700MW but is currently generating about 350MW.
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The regulator has brought the Power and Water Resources ministries, BPE and concessionaire Penstock Limited together to address contractual and operational constraints.
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The ICRC said similar compliance reviews would be conducted on Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila power projects.
October 8, (THEWILL) – The Infrastructure Concession Regulatory Commission (ICRC) has commenced a review of the $1.3bn, 700-megawatt Zungeru Hydropower Project to address contractual and operational constraints limiting the plant’s performance.
The project, operated under a Public-Private Partnership (PPP) arrangement, is currently generating about 350MW for the National Grid, roughly half of its installed 700MW capacity.
The review brings the ICRC together with the Federal Ministry of Power, Federal Ministry of Water Resources and Sanitation, Bureau of Public Enterprises (BPE) and Penstock Limited, the concessionaire operating the plant.
The commission said the exercise was to identify and resolve issues preventing the hydropower project from operating at optimal capacity.
ICRC Reviews Contractual, Operational Constraints
Speaking at a stakeholders’ meeting in Abuja, the Director-General of the ICRC said PPP power assets such as Zungeru could not be allowed to operate below their potential at a time the Federal Government was seeking to address Nigeria’s electricity challenges.
He said the meeting was convened to identify the legal, contractual and operational issues affecting the plant and develop a path towards improved performance.
“President Bola Ahmed Tinubu’s promise to Nigerians that he will solve the power problem is not words for the sake of it. It is a statement he meant, and he has charged all of us to support him by playing our roles to deliver on this promise,” Ewalefoh said.
The DG clarified that the ICRC was established as the regulator of PPP arrangements and was not a party to individual concession agreements.
He said the commission’s responsibility was to monitor compliance by both the grantor and concessionaire with the terms and obligations contained in PPP agreements.
Section 20 of the ICRC Act 2005 mandates the commission to take custody of concession agreements, monitor compliance with their terms and conditions, ensure efficient execution of government concession contracts and perform other duties necessary to ensure the effective performance of its functions.
According to Ewalefoh, signing a concession agreement was only the beginning, while effective implementation of its provisions was necessary to deliver the expected outcomes.
“Signing a concession agreement is only the first step; implementation of the terms in the PPP agreement is what delivers results”, he said.
He added that PPP arrangements involved shared risks and responsibilities between the parties, stressing that the objective was to ensure sustainability, returns on investment, service delivery and value for money for Nigerians.
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Similar Reviews Planned For Other Power Plants
Ewalefoh disclosed that the commission would extend its compliance review to other PPP-operated power assets, including Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila.
He said the findings from the reviews would be consolidated into a final report for submission to the President.
The ICRC said the exercise was part of its broader regulatory responsibility to ensure that government assets transferred to private operators under PPP arrangements deliver the efficiency and services for which the arrangements were established.
Ewalefoh pledged the commission’s continued collaboration with the Federal Ministry of Power and other stakeholders to improve the performance of PPP power projects and ensure that they contribute more effectively to Nigeria’s electricity supply.
He said the commission would also review other existing PPP arrangements where necessary, noting that efficiency remained one of the key reasons government assets were handed over to private-sector operators.
At the conclusion of the Zungeru meeting, the ICRC and participating stakeholders itemised the legal, contractual and operational issues identified during the review.
The parties also agreed on a date for a follow-up meeting to consider the issues further and determine the actions required to improve the plant’s performance.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
