20 December 2004 – Nigeria and Iran have signed a Memorandum of Understanding for Iranian energy company, Farab Limited to rehabilitate the Kainji hydro power plant.
Nigeria’s Power and Steel Minister, Liyel Imoke and Iranian Power Minister, Habibullah Bitaraf, signed the MOU while Imoke was visiting his Iranian counterpart on 15 December. Both countries are still calculating the financial costs and details of the projects.
Under the terms agreed upon in the MOU, Farab Limited is to perform a total overhaul of the plant and return it to its full electricity generation capacity of 120 MW within a three-month period. Other agreements reached in the MOU include the rehabilitation of five transformers located at Ogba, Lagos, Owerri, Ibadan, Gombe and Kaduna.
Imoke expressed confidence that the successful completion of the projects would boost power generation and supply in the country, and hoped that deals such as this would help to create bilateral relations between Nigeria and Iran.