Nigeria, Chinese firm sign 1 bln USD power project

The Nigerian government on Tuesday signed an agreement with a Chinese firm for the construction of a 700 MW power plant in Zungeru in Niger State. Minister of State for Power Zainab Kuchi and Du Nan, the vice president of Sinohydro-Cneec Corporation, signed the agreement respectively. Kuchi said the plant, to be completed in 48 months, would create more than 1,000 employment opportunities, adding that the local contract components of the project would be handled by competent Nigerian companies. She said the project would cost about 163 billion naira ( about 1 billion U.S. dollars), adding that the EximBank of China would bear most of the cost of the project. Kuchi said Eximbank would bear 75 percent of the cost of the project while a counterpart funding balance of 309 million dollars had been made available by Nigeria. On his part, Du pledged that the project would be completed on schedule as the company had the capability to do so. He confirmed that Eximbank would serve as the financier. Proposal for the project was mooted in 1982.