A private management firm, Asset & Resource Management (ARM) Company Limited has announced that it was investing N1billion in the 450mwAzura-Edo based Independent Power Plant (IPP) project being developed near Benin in Edo state.
The company in a statement said the signing of the key industry contracts and debt financing on the $750million transaction had been completed.
It further stated that the financing comprised long term debt and equity committed by a consortium of local and international financiers led by the lead sponsor, Amaya Capital Limited, and co-sponsored by other equity investors, including the ARM.
It said the financing also incorporates a number of novel features for the Nigerian market such as the financial support provided by the federal government through a Put and Call Option Agreement (PCOA).
It said it was the first Nigerian power project to benefit from the World Bank’s recently developed ‘Partial Risk Guarantee’ (PRG) structure, specifically created to meet the developing needs of emerging markets worldwide.
It disclosed that another $300million was being invested by Seplat Petroleum Development Company (SPDC) Plc in new gas processing facilities at the Oben Gas Plant, which would supply the Azura-Edo IPP with the project’s fuel gas requirements.