Concession agreement dated 4 July 2005 was effective from 4 August, 2016
Federal Ministry of Water Resources
Hydropower is the most important and widely-used renewable source of energy. Hence, there is a need to increase power-generating capacity significantly. The project is very much needed to restore the total available capacity of the two plants and to increase power generation significantly in Nigeria. The national peak power demand forecast figure is 12,800MW, against the available power of less than 4,000MW. This calls for newer power projects to be implemented. Nigeria, with a population of ~162 million people, has a total installed electricity generation capacity of 8,644MW. 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 plant is a hydropower generating facility with an aggregate capacity of 39MW at Dadinkowa Dam in Gombe state. Dadinkowa Dam is an earth dam with a concrete spillway containing three gates that control the water level in the reservoir. The inlet to the hydro-electric plant is through penstocks. A visual inspection indicates that the major part of the civil engineering element has been completed and the level of workmanship of the structure is good, with no evidence of major cracks or deterioration of the concrete structures, valve, and radial gate control gear. All of the steelwork and seals that are visible appear to be in good condition, although the penstock system and flumes into the power house have been underwater for 20 years, and have not been operated for lack of power. Some salient features of the dam are as follows: a. Type: earth and rock fill; b. Height of crest: 42m above the deepest foundation; c. Length of crest: 520m; d. Width of crest: 8m; e. Live storage capacity: 1,770 million cubic meters; f. Surface area: 3,000 square kilometres; g. Spillway • Location: left abutment • Type: gated overflow crest chute-flip bucket • Gates: 3 Nos motorized radial gates, 6m x 8m • Upstream stop log guides; h. Irrigation release facilities • Outlet right abutment • Inlet invert level EL 23,350m • Design discharge: 10 cubic meters • Length of canal lined: 3.7km (other figure reads 2.7km), concrete line completed; i. Power house intake • 2 Nos bulkhead gates • 2 Nos service gates • Hoisting house and electric hoisting system for the gates • Trashrack panels; j. Power house • 2 Nos penstocks (4.25m internal diameter • 2 Nos draft tubes • 4 Nos draft tube gates ( 2 Nos stoplog sets) • Electrical monorali hoisting system • Overhead cranes • Concrete works for the power house (for 2 Nos turbines); k. Discharge and tailrace channel.
The concessionaire shall be responsible for the operations, construction, installation, and maintenance of the dam for the purpose of hydro-electricity generation.
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 project requires 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 was carried out, as well as 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 within the environmental and social areas of influence. At a stakeholders’ meeting on August 6, 2012, which was attended by the Executive Governor of Gombe State, former Minister of Power, former Minister of State for Power, former Permanent Secretary FMoP, top management staff of FMoP, representatives of the Federal Ministry of Water Resources, and the ICRC, as well as representatives of MABON, MABON was instructed to work with the Ministry of Power and other related government bodies to address all transaction, technical, and financial requirements, to bring the transaction to a close within six (6) weeks. Another stakeholders meeting took place on March 6, 2014 at FMoP. It was agreed to undertake a site inspection to confirm Mabon’s claim that they had continued work at the site.
Baseline description of project.
Concession agreement dated 4 July 2005 was effective from 4 August, 2016
Contract Tenure Expires
Redacted PPP Contract attached
40% equity and 60% debt,
Finance through Equity and Debt
|Type of risk||Description||Allocation||Mitigation|
|Pre-construction risk||Risk associated with project preparation/Permit and approval risk||Public Sector|
|Construction / Completion||Construction and Renovation of Terminal structures||Private Sector|
|Cost risk||Cost Overrun||Private Sector|
|Refinancing risk||Financial Close/Debt servicing/interest repayment||Private Sector|
|Risk related to change in law, taxes, scope, technical standards, regulatory framework||Project scope, laws, environment, government policies||Public Sector|
|Exchange rate risk||Fluctuation in country's exchange rate/devaluation/global impact||Public and Private Sectors|
|Operating risk||Competition, workers action, etc.||Private Sector|
|Force majeure||termination||Public and Private Sectors|
|Events of Default||Brief description||Termination Payments||Documents|
|Any material breach by the Company of any covenant.||Immediate termination notice||Pay to the Employer any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Employer as a consequence of such termination|
|Performance Failure||Any breach of any of the payment obligations imposed on The Company.||Pay to the Employer any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Employer as a consequence of such termination|
|Events of Default||Brief description of events of default||Termination Payments||Documents|
|Government Action||The Expropriation, Nationalization or compulsory acquisition by a Regulatory Authority of any constituent element of the Hydro Property or the Operations.||Pay to the company any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the company as a consequence of such termination|
The Federal government has assured the government and people of Gombe State that the abandoned 39 MW Dadin Kowa Hydro Electric Dam will be completed and ready for commissioning by October this year.
This cheering news was disclosed by the Acting Director of the Infrastructure Concession Regulatory Commission, (ICRC), Chidi Izuwah while on a courtesy visit to government house Gombe.
The Dadin Kowa Hydro Electric dam situated in Deba local government area of Gombe State, 45 kilometers from the metropolis, is home to both Hydro Electric Dam, water supply and dry season irrigation.
Abandoned by previous successive administrations, the Hydro Electric Dam is 75 percent completed with both generation and transmission nearing completion. This was undertaken by the Infrastructure Concession Regulatory Commission, through the Public Private Partnership, PPP.
Briefing the Gombe state governor, the Acting Director General called for more partnership with the state government.
The project seen as a major boost for the transformation of the lives of the northeast especially the people of Gombe.
The Dadin Kowa dam is the second largest dam in the country carrying a capacity of 2.8 billion cubic liters of water generating 39mw of electricity energy changing the narrative of the people in the north east and for the country in search of energy.