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Electricity: FG signs $30bn MoU with Korean firm

By on June 1, 2013

As part of efforts to boost the country’s power generation capacity, the Federal Government on Friday signed a $30bn Memorandum of Understanding with HQMC Korea Company Limited.

The Minister of Power, Prof. Chinedu Nebo, said the MoU would give rise to a quantum leap in power generation by 10,000megawwats for the next 10 years.

According to Nebo, the Korean firm is set to inject $30bn in the power sector for the next 10 years, adding that this was no doubt a laudable and visionary effort which was in line with the transformation agenda of President Goodluck Jonathan.

The minister, in a statement from the Ministry of Power, said the addition of 1,000MW of solar power annually for the next 10 years would give the nation the required energy mix needed for sustainable development.

He said the development would also enhance the adequate spread of power across the country and Nigerians in the rural areas will benefit immensely from the proposed project.

Nebo said Korea is a top ranking technologically advanced economy, stressing that projects of this magnitude would provide Nigerians with job opportunities and skill acquisition that will positively impact on youths in the country.

“Nigeria as an emerging economy is set to provide the best market for direct foreign investment especially in the power sector,” he said.

The minister expressed optimism that the Federal Government will continue to create avenues for foreign investment so as to ensure the desired turn around in the fortunes of the power sector.

The Permanent Secretary, Ministry of Power, Dr. Godknows Igali, said the MoU signing event was part of efforts geared towards the realisation of the sector’s desire for more foreign investment.

The Managing Director, HQMC Korea, Mr. Moon Sang Kim, said the firm was determined to make a success of the project.

Meanwhile, Nebo explained that the short and medium targets projected in power roadmap had been surpassed, as the nation’s generation capacity had increased from 2,000MW in 2010 to an average of 4,517MW as at December 2012.