Nigeria has signed an agreement with Sinohydro-Cneec Corporation to secure financial assistance for the construction of the 700MW Zungeru hydro power project.
Estimated to require an investment of $1bn the hydro power station is proposed for construction on the Northern Zungeru River in Niger state and is expected to be completed in 2014.
Nigeria Minister of State for Power Zainab Kuchi was quoted by Ventures Africa as saying that the Export-Import (Exim) Bank of China will extend 75% of the project’s costs, while Nigeria will provide the remaining funds.
The announcement follows on a recent deal between Nigeria and Sinohydro Corporation of China to construct a 3,050MW hydro plant on the eastern Mambila Plateau.
Swedish trade Secretary Gunnar Oom further expressed an interest in the country’s power sector, hinting at future investments.
“What make me excited are the ambitious plans that you have in Nigeria and it fits so well with Swedish expertise and industries,” Oom said.