Nathaniel Zacchaeus, Abuja

The Senate has directed the Infrastructure Concession Regulatory Commission(ICRC) and the Bureau for Public Enterprises (BPE) to stop further actions on the concessioning of the Zungeru Power Plant in Niger State.

The upper chamber wondered why the two federal agencies went ahead with the concessioning arrangements despite an earlier resolution of the federal parliament that the action be put on hold until the power plant had been completed and tested.

The Senate then urged the BPE to honour the commitments it made before the Committee, to concession only the ZHPP after it had been completed, tested, and inaugurated.

It also recommended a new timetable for the concession process which must be adopted by the BPE.

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The Senate said it would allow time for the actualization of key contractual milestones that are critical to the success of the proposed concession.

The chamber also said it would make room for full compliance with the EPC contract between the Federal Ministry of Power and the Contractor.

The upper legislative chamber also agreed to intimate the National Privatisation Council about its decision, asking BPE and ICRC to apply the brakes until the project is completed and tested.

The resolutions were sequel to the consideration of the report on the ongoing bid to concession the 700 MW Zungeru Hydro- electrical Power Plant in Niger State by the Chairman, Senate Committee on Power, Senator Gabriel Suswam, (PDP, Benue North-East).

The Senate asked the Federal Ministry of Power to liaise with all the stakeholders regarding the concession of the ZHPP to resolve all identified constraints that will frustrate the noble objective of the concession.

The constraints included 100 per cent completion and testing of the Plant to confirm that 700MW was delivered by the contractor.

It also included the completion of the 35km 132kv transmission line to the Tegina Substation as a precondition for the evacuation of the 700MW to be generated from the plant.

The Ministry of Power was also asked to resolve all disputes over unsettled variation claims made by the contractor against it.

The ministry was also expected to address issues of unpaid contractor and project consultant invoices.

The Senate also stressed the need to conclude the payment of compensation and resettlement of affected communities at the site of the project.

It was also asked to extend the Project Contractor’s contract from 28th December 2023 to 23rd June 2024 which is the end of the defect liability period.

The Power Ministry was asked to engage an EOM contractor to test the plant to confirm that 700MW is what has been procured by the FG and concessioned to the successful concessionaire.

The Upper Chamber also mandated the Federal Ministry of Power and other relevant MDAs to the proposed concession of the ZHPP to ensure transparency in terms of budgetary releases made by the Federal Government for payment to the Project Consultant or to cover other aspects of the ZHPP outside the loan secured by the Federal Government to finance the project.

It also resolved that it would, in collaboration with other relevant MDAS monitor the concession of the ZHPP.

It noted that the idea would ensure vigilance in any Public Private Partnership (PPP) involving Government’s power assets.

This according to it, would ensure that Government was not short-changed in the process but such transactions give the Government and people of Nigeria value for money spent on such assets.

The Senate also asked the BPE and ICRC to adopt a common position on the tenure of the ZHPP concession.

The red chamber said, “If they are unable to reach a consensus on the tenure of the concession, the recommendation of the ICRC as the apex regulator of Federal Government’s concession arrangements should prevail.”

Meanwhile, the Senate Power Panel Chairman had noted that from what his Committee had gathered, the Zungeru Power Plant would not be able to evacuate the required power as it was yet to be completed.

He said the action of both BPE and ICRC, going ahead with the concession of the Zungeru Power Plant had left the Federal Government seriously short-changed.

He lamented that the bidding of $70 million per annum for 30 years was grossly far too less than the $2.2m so far expended on the project by the Federal Government.

The Chairman of the Senate Public Accounts Committee, Senator Matthew Urhoghide, said it was important to ensure that the 320KVA transmission line was installed before the power plant is handed over to the concessionaire.

Chairman, Senate Services Committee Senator Sani Musa, expressed worries over BPE and the Federal Government’s decision to conclude the concession arrangements.

He noted that several issues including the settlement of over 44 displaced communities and the naming of the power plants had yet to be resolved.