Nov. 7 (Bloomberg) -- Nigeria signed a memorandum of understanding with China’s Sinohydro Corp. to build a 3,050-megawatt hydropower plant on the West African nation’s eastern Mambila Plateau, Power Minister of State Zainab Kuchi said.
Sinohydro will build the power plant at its expense and operate it for nine years before transferring ownership to the Nigerian government, Kuchi told reporters today in the capital, Abuja.
The company will work with China National Electrical Equipment Corp. to build another 700-megawatt hydro power station on northern Zungeru River, with China’s Export-Import Bank providing 75 percent of required funds, according to the minister. Nigeria will provide 25 percent, or $309 million, she said.
Africa’s top oil producer and most populous country of more than 160 million people is seeking increased investments in power to meet demand which is more than double the current output of about 5,000 megawatts. The government has ended state monopoly of power utilities and sold generation and distribution companies to private investors.
The two hydro power projects planned with the Chinese companies are expected to be completed by 2014, the minister said.
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