Mainstream Energy Solutions Limited has injected a fresh $26m (N8.3bn) investment into the Kainji Hydro Power Plant to rehabilitate its Hydro Turbine Generator unit.
The agreement for the rehabilitation project was signed with General Electric in Abuja.
With the rehabilitation expected to be completed in 24 months, the fresh investment will add 80 megawatts, thus raising Mainstream’s power generation capacity from both Kainji and Jebba Hydo Power plants to about 1, 000MW.
The two plants have a combined installed capacity of about 1, 330MW.
The Chairman, MESL, Col. Sani Bello (retd.), said his company was committed to the concession of Kainji and Jebba plants with a view to significantly improving power supply to the people.
He said negotiations for the rehabilitation of the Jebba plant were ongoing, noting that the rehabilitation would further increase power output from Mainstream’s operations by another 96MW of electricity.
He called on the government to meet its own side of the agreement to enable the company achieve its set objectives.
The chairman said, “We can’t meet our own side of the bargain unless our partners in the concession also meet their own side of the agreement.
“So far, the agreement has been truncated but we have managed to survive and keep our heads above water. I hope that payments are substantially made as agreed. We have got a lot of outstanding invoices.”
Bello noted that the N701bn payment guarantee of the Federal Government, which was meant for invoices between January this year and December 2018 was very significant.
He said the initiative would provide up to 80 per cent of invoices payment within the period.
The Managing Director of the company, Mr. Lamu Audu, said the agreement was in line with Mainstream’s capacity recovery obligations under the concession with the Federal Government