KUDOS TO UNCLE JONA ON THE HYDROELECRIC POWER PROJECT
As part of the Transformation agenda of the Jonathan-led
government, the co-coordinating minister of the economy and minister of
finance, Mrs Ngozi Okonjo-Iweala, in company of the power minister
recently signed an agreement worth approximately $1.293 billion on power
project with a group of Chinese companies. The project, which is
popularly called the Zungeru Hydroelectric Power Project can be
described as a positive step in a positive direction by the Nigerian
government as part of its efforts to end electricity shortages in the
country.
Located in Zungeru, a local community in Niger State, 150 km away
from Abuja, the Zungeru Hydroelectric Power Project is expected to
generate 700 megawatts of power to boost the country’s current 4,500
megawatts capacity and is scheduled to be finished in four years.
According to the Minister of Finance, the contract is captured in
the 2012-2014 Medium Term Borrowing Plan approved by the National
Assembly. In her words, “The total cost of the project is estimated at
$1.3 billion, that is 75% of the entire cost, will be financed by a loan
provided by the China Eximbank while the Federal Government has already
paid 25% of the running cost to kick-start the project. The loan is
obtained at a highly favourable concessional term: 2.5% interest rate
with a seven year grace period and 20 years maturity.”
Kudos should be given to the President for surrounding himself with
a brilliant team of technocrats, headed by the globally renowned
Okonjo-Iweala. Now Nigerians can begin to appreciate the efforts of the
government in tackling head on the age-long problem of power shortage in
the country. No doubt, this latest initiative will yield savoury
dividends in economic and social opportunities, part of which is job
creation for the Nigerian people after the project, not to mention the
direct and indirect jobs that will be created in thousands for local
technicians, engineers, artisans and others during the construction
phase.
The nation can only be the better off for this Zungeru Project in
terms of economic growth, which will usher in a new period of
industrialization and urbanization of our rural areas. Meanwhile, I will
urge our leaders to keep the timeframe for this project to the four
years they have told us; while we the people need to give maximum
support to make the project a reality.
Nigeria is the latest business destination in Africa, and the
government is trying its best to create a conducive economic environment
for business to thrive, and power is a major issue to achieve this end.
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