Nigeria, China sign agreement to fund major power projectStaff writer ▼ | September 30, 2013
Located in Zungeru, a local community in Niger State, 150 km away from the capital city Abuja, the Zungeru Hydroelectric Power Project is expected to generate 700,000 kilowatts or 700 megawatts of power for Africa's most populous country, Minister of Finance Ngozi Okonjo-Iweala said at the signing ceremony, reports Xinhua.
The Nigerian official noted the contract awarded to two Chinese electric power firms, China National Electrical Equipment Corporation (CNEEC) and Sinohydro Consortium, was given a loan facility by the EximBank of China, with preferential conditions.
The Eximbank would bear 75 percent of the cost of the project while a counterpart funding balance of 309 million dollars had been made available by Nigeria.
Chinese Ambassador in Nigeria Deng Boqing, who signed the agreement on behalf of the East Asian nation's government, said the Zungeru Hydroelectric Power Project was significant to the Nigerian people, because it will contribute greatly to economic growth, meeting growing power demand as the West African nation ushers in a new period of industrialization and urbanization.
The Zungeru Hydroelectric Power Project was conceived in 1982, but due to constraints of funds, the construction work could not commence. The Nigerian government approved the project in 2012 in order to obtain more electricity, help maintain appropriate power prices and promote economic growth and development of the country. ■