The Zungeru hydropower project billed to cost $1.29bn is among the most cost-effective in the world, consultants to the project, Decrown West Africa Company Limited, has said.
In a statement made available to our correspondent, Decrown said it would be wrong to compare the cost of the hydro power plant in the country with similar projects in China and India because the turbines were manufactured in those countries.
The statement said, “The project had been well studied over the past three decades and the engineers affirm after several geotechnical investigations that the project has minimal geological and geotechnical risks.
“It takes advantage of the regulation provided by the Shiroro HPP to produce 2,630GWhr of renewable energy generation (zero carbon) per year and offers 700 MW capacity at a reasonable cost.
“Construction conditions are good and favorable to a Turnkey EPC type Construction Contract giving time for Completion at 48 months (first unit). EPC Contract was awarded in December 2012 to Sinohydro of China in association with CNEEC of China by the Federal Executive Council for the sum of $1.293b.”
According to the company, Hydropower Projects have generally an EPC construction cost between $2,000 and $2,600 per kW installed capacity, adding that Zungeru Hydropower Project is cheaper comparatively to similar projects in Africa.
Decrown said the economic analysis of Zungeru was very favourable.
The annual energy generation of the 700MW Zungeru Hydropower Plant will be 2,630GWhr/year with zero carbon emission. The Internal Rate of Return of the Project is higher than 10 per cent assuming energy selling rate of six cents and the payback period is less than 10 years, Decrown added.
The Zungeru Hydropower Project is expected to generate about 10,000 skilled jobs during construction mostly in Engineering and related fields and thousands more in linkage services.
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