Federal government has picked local energy firm Mainstream Energy Solution Ltd to operate and manage a Chinese-funded hydro electric power station at a cost of $70 million a year for the next 30 years, the Bureau of Public Enterprises (BPE) said on Wednesday.

BPE had said in November it was looking to grant a concession for the 700 megawatt (MW) Zungeru Hydroelectric Power Plant that is being built at a cost of $1.3 billion in Northcentral Niger state.

BPE spokesperson Uzoma Ibeh said in a statement that Mainstream Energy Solution Ltd offered the highest bid.

The firm says on its website it has been in operation for 11 years and is chaired by Sani Bello, a businessman who owns a local oil and gas company.

Zungeru, which is being funded by loans from China's Exim Bank, is expected to boost erratic power supplies in Africa's most populous nation. The power plant is expected to begin supplies by the end of March.

Reuters