The Federal Government of Nigeria has approved the replacement of the preferred bidder for the concession of the 6MW Ikere Gorge hydropower plant in Iseyin, Oyo State, after years of project dormancy.
This decision was based on the bidder’s failure to accept the project offer and commence work within the designated five-year contract period, as confirmed by the Minister of Power.
Adelabu also informed the State House that this replacement was among several approvals totaling over N40 billion.
Bidder replacement and project revival
Minister of Power during a post-Federal Executive Council (FEC) briefing in Abuja, explained that the government revoked the original concession due to non-performance and the expiration of contractual terms.
Adelabu added that the government has now approved the reserved bidder, Quent Power Infrastructure Nigeria Limited, to take over the concession under revised terms..
“However, the preferred bidder for the Ikere Gorge hydro power plant, Misuse Power Control and Appliances Limited, failed to accept the offer within the stipulated time frame, and for five years running, nothing has happened”.
“We have carried out due diligence on this company, and we have also discussed with their technical partner. We have realized that they have all it takes to ensure that this hydro power plant in the Iseyin part of Oyo State is revamped and even improved to 15 to 20 megawatts,” Adelabu said.
He noted that the transition is aimed at fast-tracking power generation in underserved regions of Oyo State and beyond.
This supports Nigeria’s long-term goal to harness its 12,220 MW hydropower potential, of which only 1,930 MW is currently developed, as stated by Suleiman Adamu, former Minister of Water Resources, in 2019.
The approved concession terms include a one-time concessional fee of N291.6 million and an annual concession fee of N66.3 million.
The approval also forms part of a broader N1.202 trillion infrastructure spending plan recently approved by the FEC, targeting energy, aviation, and road sectors
Additional infrastructure investments
Among the several approvals was a major substation upgrade project in Ibadan, Oyo State.
Adelabu announced the award for the construction and installation of a 2×60 MVA, 132/33kV substation, valued at $18.3 million and N9.9 billion, inclusive of 7.5% VAT.
The project is scheduled for completion within 24 months.
“A separate consultancy service contract for the substation was approved for Team Spirit Consult Limited at $1.4 million and N589 million, also including VAT, and to be completed within 24 months”, the minister explained.
He assured that the infrastructure will enhance power stability for industrial zones and institutions in areas such as Iwo Road, Manatan, and Iyana-Ofa.
