The government of Nigeria has signed an agreement with a consortium of China National Electric and Engineering Corporation and SinoHydro for the construction of the 700 MW(megawatt) Zungeru hydro-electric power project. Three quarters of the project is being financed by a major Chinese bank, to the tune of US$1.3-billion dollars, and the remaining quarter is likely to be paid for by the government of Nigeria. The plant, which is likely to be completed in four years, was captured in the 2012 to 2014 medium-term borrowing plan approved by the national assembly.
Nigeria's finance minister Ngozi Okonjo-Iweala told Reuters this project is likely to create thousands of jobs for Nigerian engineers, technicians and artisans during the construction phase, benefiting the local economy. The project, which will be a boost to the country's 4,5 gigawatt electricity capacity, is part of the government's efforts to curb electricity shortages in the country.