Project proposal received
Received update proposal from BPE to ICRC
Federal Ministry of Power, Works and Housing
Nigeria, with a population of 180 million people, has a total installed electricity generation capacity of 8,644 MW. However, the peak generation is much lower at around 4,000 MW. The reasons for the shortfall in generation can be attributed to the inadequate fuel supply to thermal plants, which constitute over 80% of the installed capacity, hydrological factors for hydropower stations, maintenance outages at power plants, and transmission and distribution outages. The peak demand is forecasted at 12,800 MW. When seen against the available power of less than 4,000 MW, there is a peak load shortage of more than 8,000 MW. Thus, the available generation capacity is less than one-third of the total peak demand for electricity.
The dam is built on the Niger River, just upstream of Kainji Island, and has two rockfill embankments separated by an intake dam and spillway. The plant consists of eight units with a total installed capacity of 760 MW. Kainji Dam is located in Borgu LGA of Niger state. Kainji Dam comprises the civil dam structure, gated spillway, hydroelectric turbine and generators, and a navigation lock, with monitoring and control systems for all these. The development perimeter comprises the main concrete gravity dam with earth embanked dams on either side of the main and saddle dams, which closes a secondary valley, and two gates. The main dam is 550m long with a maximum height of 64m. It comprises the water intakes, flood evacuator, and abutments. The powerhouse is located downstream of the dam, on the right bank, and at right angles to the water intakes. The reservoir, which presently forms Lake Kainji, is 136km long and has a capacity of 15 billion m³. The Kainji powerhouse is equipped with eight turbine-alternator groups, including four Kaplan-type rated at 80 MW, two turbines also Kaplan-type rated at 100 MW, and two propeller turbines rated at120 MW. The available head ranges between 23.8m and 41.2m, according to the water level in the reservoir. The development perimeter comprises the main concrete gravity dam, with earth embanked dams on either side of the main and saddle dams, which closes a secondary valley, and two gates.
The PPP contract is to operate, maintain, refurbish, and expand the power stations; design and conduct restorations; generate power; sell the electricity; and provide ancillary services. These services are to be performed in such a way as to increase the available capacity of the power station. The dam stores and safely releases water to generate hydroelectric power, provides flood protection, and supports navigation. The dam generates renewable energy.
The project was conceptualized for the design, rehabilitate, operate, maintain (recover capacity), and provision of ancillary services. Hydropower is a clean, efficient, and dependable source of electric power at affordable prices. The technology for small hydro is mature and has been in use for decades. The nature of a hydropower project causes limited impact on the flora and fauna of the project area, and has no displacement or rehabilitation impact on humans. The services in the project require the operation and maintenance of the existing capacity of the power station to restore generation capacity, which is currently damaged, and to design, construct, operate, and maintain new generation capacity and comply with the performance requirements and standards detailed in the agreement.
Stakeholder engagement was carried out during the PPP process. Stakeholder identification and vulnerability analysis of existing communities carried out implementation and periodic review of the stakeholder engagement plan to address issues of power supply equity in surrounding communities. Project update consultation events were undertaken with communities in the environmental and social areas of influence. Public grievance mechanisms (PGM) were developed for appropriate use for local communities, based on existing standards. PGM was disseminated to communities in the areas of influence through respective channels. The PGM addresses how parties can raise grievances with the management directly and has been distributed to residents in the surrounding communities.
The Kainji/Jebba and Shiroro Hydro Power Plants Concession was undertaken by BPE during the global privatization of unbundled PHCN successor companies. The transaction commenced (in 2007) before the inauguration of the ICRC; it was stalled and subsequently re-commenced .The transactions were guided by the approvals received by NCP alongside the other GENCOs and DISCOs.
Received update proposal from BPE to ICRC
Contract expires after 30 years
REDACTED PPP AGREEMENT
|Type of risk||Description||Allocation||Mitigation|
|Construction / Completion||Risk of not meeting project schedule milestones||Private Sector||Regular review of project implementation schedule|
|Risk related to change in law, taxes, scope, technical standards, regulatory framework||Public and Private Sectors|
|Operating risk||Risk of low water levels||Private Sector||Increase catchment area|
|Project risk||Risks associated with project preparation||Public and Private Sectors||Develop a high level Project Implementation plan to reduce impact , severity and or probability of occurrence.|
|Permits/Approvals Risk||Risk of not obtaining all required approvals, licences and or permits||Private Sector||Appropriate relevant stakeholder consultations and engagement|
|Events of Default||Brief description||Termination Payments||Documents|
|Financial Event||Breach of payment obligations ,not remedied within 15 days after notice is given|
|Event||Any other material breach by the concessionaire of any covenant in the agreement|
|Events of Default||Brief description of events of default||Termination Payments||Documents|
|Political Event||Nationalization or compulsory acquisition by a regulatory authority of any constituent element of the hydro property or operations|
|Political Event||Revocation or termination of the generation license or Water License, as a result of default,omision, or breach by authority|