PRESS RELEASE

May 11, 2023

FEC approves Management Concession for Gurara II, Kashimbilla power plants, others, targets 400MW power, N647.7bn revenue – ICRC

…As NCC’s System to fight terrorism, insecurity gets approval

…Secure E-ticketing for Warri-Itakpe, Lagos – Ibadan also get executive nod

The Federal Executive Council (FEC) on Wednesday approved an Operation and Management concession for the 360 Mega Watts Gurara II Multipurpose Dam and Hydro Power Plant as well as the 40 Mega Watts Kashimbilla Hydro Power Plant under a Public Private Partnership model.

The move by FEC which followed the regulatory guidance of the Infrastructure Concession Regulatory Commission (ICRC), also saw the approval for the concession of a Secure E-ticketing Solutions for the Lagos Ibadan Rail Service and the Warri-Itakpe Rail Service in addition to the Device Management System, a project by the Nigerian Communications Commission (NCC).

The approvals by FEC will bring about the generation of 400 mega watts of electricity, infusion of private sector funds into the nation’s economic/infrastructure development and a total revenue generation of N647.7 billion.

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.

The Gurara and the Kashimbilla HPP projects will bring about Improved living conditions and employment, promotion of agriculture through irrigation, reduction of Greenhouse Gases as well as foreign exchange preservation.

For the Kashimbilla 40MW HPP FEC’s approval is for the operations and maintenance of the Hydropower Plant.

Recall that one of the primary objectives of the dam is 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.

Project cost is put at ₦ 7.68 billion approved for a concession period of 15 years. It will yield a total revenue of ₦ 85 billion.

The Gurara and the Kashimbilla HPP projects will bring about Improved living conditions and employment, promotion of agriculture through irrigation, reduction of Greenhouse Gases as well as foreign exchange preservation.

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 revenue generation of ₦86.6 billion.

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 solutions seek 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 Messers Global Software Digital Solutions Ltd (GSDS) and Datamataic Global Services Ltd (DGS) as technical partner, for a period of 10 years.

A total of ₦112.8 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 is estimated at ₦63.3 billion. End.

Signed:

Ifeanyi Nwoko

Ag. Head, Media and Publicity

For enquiries send a mail to: info@icrc.gov.ng