The Federal Government has commenced a regulatory review of the $1.3 billion Zungeru Hydropower Project over concerns about the plant’s low electricity generation.

The 700-megawatt power plant is currently generating about 350MW for the national grid, prompting the Infrastructure Concession Regulatory Commission to investigate the factors limiting its performance.

The ICRC said the review would examine the contractual, legal and operational issues affecting the project, with a view to improving its efficiency and increasing its contribution to the national grid.

The Commission said it would review the terms of the concession to ensure that all parties were complying with their contractual obligations.

The review brings together the Federal Ministry of Power, Federal Ministry of Water Resources and Sanitation, Bureau of Public Enterprises and Penstock Limited, the concessionaire operating the plant.The BPE serves as the grantor under a power of attorney from the Ministry of Power.

Speaking at a stakeholders’ meeting in Abuja, ICRC Director-General, Dr Jobson Oseodion Ewalefoh, said public-private partnership assets such as Zungeru could not be allowed to operate below capacity.

Ewalefoh said the meeting was convened to identify the challenges preventing the plant from operating optimally and work with the relevant stakeholders to resolve them.

According to him, Section 20 of the ICRC Act 2005 mandates the Commission to keep custody of concession agreements, monitor compliance and ensure their efficient implementation.

Ewalefoh stressed that signing a PPP agreement was only the beginning, adding that proper implementation of the agreed terms was necessary to deliver the expected benefits.

He said the arrangement was designed to share risks and responsibilities between government and private investors while ensuring sustainable operations, reasonable returns for investors and value for Nigerians.

The Zungeru review is expected to form part of a wider assessment of PPP-operated power projects across the country.Ewalefoh said similar compliance reviews would be conducted on the Kainji, Jebba, Shiroro, Dadinkowa and Kashimbila power plants.

The Commission will assess the performance of the facilities and determine whether they are meeting the contractual obligations governing their operations.The ICRC said a final report from the reviews would be submitted to President Bola Ahmed Tinubu.

At the end of the Zungeru stakeholders’ meeting, the parties identified and documented the legal and operational challenges affecting the project.