11 January
Financial close
Concession period begins
Energy
Niger
Implementation
Federal Ministry of Power, Works and Housing
02-07-2020 11:34:52
Hydropower is the most important and widely used renewable source of energy. Hence the need to increase significantly the power generating capacity. The project is very much needed to restore the total available capacity of the two plants and increase power generation significantly within Nigeria. The national peak power demand forecast figure is 12,800MW as 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 4,000MW. 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 hydro power stations, maintenance outages at power plants, and transmission and distribution outages. There is a peak load shortage of more than 8,000MW. Thus, the available generation capacity is less than one-third of the total peak demand for electricity. The civil dam structures include a main rock-filled concrete-faced dam.
The power plant land coverage is 34km2 with a rock-filled concrete-faced dam that is 115m high and 700m long. The dam site has a reservoir of 7bM3. It has a power house building comprising several support services. The project has residential quarters, a hospital, and a school. Shiroro has an electrical distribution network comprising 11/0.41kV distribution network and 11/0.415kV sub-stations (110-200kVA). Assets consist of civil structures, the Primary Electro Mechanical Plant, non-core assets, and balance of the plant assets (overhead cranes, fire protection systems). There are four hydraulic turbines, four generators, gates and hoists, plant auxiliaries including a powerhouse portable water treatment plant, sewage treatment plan, lubricating oil treatment plant, one chlorination plant, two flood control pumps, and reservoir management equipment. The available capacity at the Shiroro power station is 600MW.
The PPP contract is to operate, maintain, and refurbish, repower, replace, or expand the power stations; design and conduct restorations; generate power; sell the electricity; and provide ancillary services. The 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; to design, construct, operate, and maintain new generation capacity; and to 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 were carried out, including 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.
The Federal Government of Nigeria through the Bureau of Public Enterprise authorised a concession of the Shiroro Hydro Electric Plc for the generation, operation and activities of power holding company of Nigeria Plc (PHCN), at the power station and in this respect to acquire, employ and make use of such of PHCN’s assets and employees and assumes and/or enjoy such of the rights, undertakings, obligation and function of PHCN that pertain to and/or are incidental to the generation of electricity in accordance with the provision of the EPSR Act. The company’s authorised share capital is five million (5,000,000) Naira divided into ten million (10,000,000) ordinary shares wholly owned by FGN through Ministry of Finance Incorporated (MOFI) and BPE.
This summary is in four parts; Part I contains basic project information, Part II contains specific contract information, Part III contains information on actual performance of the project, Part IV contains information on contract variation (if any).
11 January
Concession period begins
21 February
Contract signed
1 December
Construction begins on civil structures
1 November
Contract expires in line with agreement
Redacted PPP Agreement
Companys authorised share capital is N5000000 divided into 10000000 ordinary shares
Authorised shares owned wholly by the FGN through the ministry of Finance incorporated and BPE
North South Power Company Ltd consists of instutional shareholders from Zambia,USA and Nigeria
| Type of risk | Description | Allocation | Mitigation |
|---|---|---|---|
| Construction / Completion | Risk of not meeting project schedule milestones | Private Sector | |
| 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,Gurara River diversion of 1/3’s of the water to the dam would increase the amount of water available and ultimately increase generation. |
| Land Leases, Asset Transfers | |
| Water usage |
Right to use water flows of the river Kaduna |
| Water License |
issuance to the concessionaire of a water license from the Minister of water resources to permit use of water from the river course for hydro -electric purposes |
| 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 |
| Year | 2015 | 2016 | 2017 | 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| Power Capacity {Monthly average } (MW) | 600 | 450 | 600 | 450 | 600 | 0 | 600 | 0 | ||||||||
Information will be published as soon as it is available.
The Infrastructure Concession Regulatory Commission (ICRC) has restated its commitment to effectively monitor Public Private Partnership projects to ensure optimum utilization of public assets. This position was reinforced at a recent on-the-spot assessment visit to Shiroro Hydro Electric Power Plant in Shiroro, Niger State, undertaken by a joint team from the ICRC, Nigeria Electricity Regulatory Commission (NERC), and the Nigerian Electricity Management Services Agency (NEMSA).
The visit followed a recent flooding at Shiroro plant which occurred as a result of a ruptured valve of the cooling water system at the lower level of the power station during a routine maintenance. The flooding led to a disruption of power generation.
During the inspection, the Director, Contract Compliance Department of the ICRC, Mr. Mohammed Bamalli, who led the delegation, expressed deep regret over the unfortunate incident. He said “we are relieved that no casualty was recorded as a result of this incident”.
Concessionaires of the plant, the North South Power Company Ltd, speaking through its Chief Operating Officer, Engr. U. Chioke, disclosed that the company since commencement of operation in 2013 had embarked on major rehabilitation and turnaround maintenance of the asset leading to a complete recovery of the dam’s installed capacity of 600mw from 450mw at take over.
The Commission and the aforementioned stakeholders are working closely with the concessionaire towards full recovery of services and necessary measures are being designed to mitigate future occurrence.
We wish further to assure the general public especially the communities around the power plant that the situation has been contained and measures are being taken to restore the plant to its optimum capacity.
Manji Yarling
Ag. Head, Media & Publicity
Contract Challenges& Issues
Other relevant information
