Federal government has assured Azura Group, an independent power producer, of its support for the company’s 450mw power plant in Edo state.
Speaking in Abuja when he received the group’s delegation, the minister of power, Prof. Chinedu Nebo, described the project as the second largest green independent power producing plant (IPP) and largest greenfield in Nigeria.
Nebo said government was committed to driving the ongoing privatization to a logical conclusion, adding that the position of power as the engine of growth and development in Nigeria cannot be over emphasised.
Describing Nigeria’s power sector as attractive and lucrative, he said, “this is the auspicious time to invest in power.”
He assured that government was poised to buy all power generated, through its agency – the Nigeria bulk electricity trader (NBET), and had the backing of the World Bank backing through the partial risk guarantee (PRG).”
“All power generated will be paid for 100% when produced. There is also the buy-back scheme. All these measures are attractive to the genuine investors, coupled with the fact that the market in Nigeria, West Africa and Africa is huge, only waiting for the robust transnational transmission Lines to come up stream”, he said.
Acknowledging the efforts of Azura Group in the development of critical infrastructure for gas utilization, the minister commended the company’s incorporation of investment in gas infrastructure into its plan.
Prof. Nebo used the occasion to call on other investors to take position and invest in power, stressing that the suppressed demand for electricity in Nigeria was 3 to 4 times more than the current production level.
Speaking earlier on the project, its cordinator, David Ladipo, said the proposed project would generate initial capacity of 450mw at a total cost of $735 million, while its financial books would be closed in May 2014.
He assured that the company would adhere to the 30 months’ time frame for the construction of its first phase, assuring that the plant would accommodate future expansion which he put at 1,500mw.
He said the Azura story had signaled the absolute confidence of the international community in Nigeria’s power sector divestment programme.
