The Federal Executive Council (FEC) has approved an Operation and Management concession for the 360 megawatts Gurara II Multipurpose Dam & Hydro Power Plant and the 40 megawatts Kashimbilla Hydro Power Plant under a Public-Private-Partnership (PPP) model with a projected revenue target of N647.7 billion from the deal.
The approval by the FEC was sequel to the consideration of the regulatory guidance by the Infrastructure Concession Regulatory Commission (ICRC) which also led to the approval for the concession of a Secure E-ticketing solutions for the Lagos-Ibadan rail service and the Warri-Itakpe rail service and the Device Management System, a project by the Nigerian Communications Commission (NCC).
The approvals by the Council is expected to boost the nation’s power generation by 400 megawatts, improve private sector funds into the nation’s economic/infrastructure development and rake in N647.7 billion as revenue to government coffers.
It will also help in the fight against crime, terrorism and insecurity while improving the effectiveness of the rail services in the specified routes.
The 360MW Gurara II HPP is a greenfield project that will adopt a Build, Operation, Maintenance and Transfer PPP model that will be executed by Messrs. CGCOC Group Co. Limited under an Engineering Procurement and Construction (EPC) contract for a concession period of 30 years.
The dam, hydropower plant, and other complementary infrastructure will be executed within a concession period of 30 years and an expected total revenue generation of $875million USD within the period.
Both the Gurara and the Kashimbilla HPP projects will also enhance citizens living standards, create jobs, support agriculture through irrigation, reduce greenhouse emissions and preserve the nation’s foreign exchange (FX) among other benefits.
For the Kashimbilla 40MW HPP the executive council’s approval is for the operations and maintenance of the hydropower Plant.
It would be recalled that one of the primary objectives of the dam was to mitigate the environmental disaster associated with overflow of flood water in various downstream states of Taraba, Benue, Kogi, Delta, Cross River and Bayelsa, and potentially affecting more than 6 million people.
The hydropower component of the dam will also aid in ecological flood control, water supply for a population of about 400,000 people, irrigation potentials for about 3,000 hectares of arable land for farming as well as fishing to support food security.
The project cost is put at N7.68 billion approved for a concession period of 15 years. It is projected to generate a total revenue of N85 billion.
The Device Management System which has the NCC as grantor, seeks to provide a single control point for comprehensive device management for mobile communication devices in Nigeria.
Specifically, the proposed DMS will support capabilities for tracking of mobile communication devices to eliminate fake and substandard devices, provide detailed statistical information for stakeholders use, and support the fight against cybercrime and insecurity.
It adopts a Design, Build, Finance, Operate, Maintain and Manage PPP model for a concession period of 10 years at a cost of $26 million. A total N86.6 billion is targeted as revenue from the project
For the Lagos-Ibadan E-ticketing and the Warri-Itakpe concessions, they adopt a Design, Finance, Build, Operate and Manage a Secure Ticketing Solution (Hardware and Software) for the Passengers’ Stations.
The solution seeks to ensure the provision of electronic tickets (e-tickets) and manual tickets, provision of adequate infrastructural security, deployment of adequate maintenance regime, provision of adequate training regime and provision of value-for-money throughout the life of the solution.
The Lagos-Ibadan concession was approved at a cost of N1,100,000,000 (N1.1 billion), granted to Messrs Global Software Digital Solutions Ltd (GSDS) and Datamataic Global Services Ltd (DGS) as technical partner, for a period of 10 years. A total of N112.8 billion will be generated from this project.
The Warri-Itakpe counterpart will be executed at the cost of is N860,806,423, granted to Fane International Consult Limited and Artificial Intelligence Technologies Limited (AITL) as technical partner, also for a 10-year term. Revenue generation from the project is estimated at N63.3 billion.
