Don't Miss


Home   >   Business   >   Industries   >   Energy   >   US firm to invest N20.8b in Nigeria’s power sector

US firm to invest N20.8b in Nigeria’s power sector

By on December 8, 2013

The American Capital Energy & Infrastructure (ACEI) plans to invest up to N20.80 billion ($130 million) into the Nigerian Power sector.

The funding is for the 1,000 Mega Watt Azura-Edo Power Project in Edo State, Nigeria, the first phase of which will be commissioned in 2016/2017, according to Azura Power Holdings Limited, the company responsible for developing the project on Thursday.

The statement added that “the Azura-Edo power project is a proposed 450MW open cycle gas turbine power station being developed near Benin City in Edo State and represents the first phase of a 1,000MW power plant facility.

“Azura and the Nigerian Bulk Electricity Trading Plc signed a groundbreaking power purchase agreement on April 22, 2013, which is being used as a template for other project-financed independent power producers in the country.

“The transaction has been showcased by President Goodluck Jonathan as critical to the Nigerian power sector reform process.

“The first phase of the plant, which is targeted to reach financial close in early 2014 and come on stream in 2016/2017, is forecast to create over 1,000 jobs during its construction and operation,” the company said.

The project is expected to have a positive impact on the industrial and social wellbeing of the area.

As a partner in the presidential initiative, ACEI, the statement said, is actively pursuing investments in African power companies to originate, develop, finance and operate regional energy infrastructure assets in West Africa, East Africa and Southern Africa.

Over the the next four years, the company plans up to $800 million in total investment on the continent.

With a goal of becoming the leading power development company in West Africa, Azura said it would utilize ACEI’s investment to fund the first and second phases of the Azura-Edo power project. This is in addition to pursuing its greenfield development pipeline and future acquisitions, expand its team, and grow its construction and operational capabilities.

Paul Hanrahan, chief executive and co-founder of ACEI, said the investment in Azura is “a good example of the type of investment in high growth platforms in the energy infrastructure space that we are targeting.

“Our investment is in recognition of the significant progress made by the Azura co-founders on the first phase of the Azura-Edo power project, the growth opportunities in the Nigerian and West African markets, and our confidence in the Federal Government of Nigeria’s power sector reform program.”

In June 2013, ACEI joined Power Africa, a United States Government initiative launched by President Obama that is focused on supporting economic growth and development in Africa by increasing clean and reliable access to electrical power.

The United States Government along with the governments of Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania, and private sector partners have coordinated to accelerate and spur investments in the continent.

“In line with our Power Africa efforts, ACEI is investing in the leading independent power producer platform in this key African market,” said Lisa Pinsley, ACEI Director of Africa Investments.”

Sundeep Bahanda, co-founder of Amaya Capital Partners, the lead sponsors of Azura, and Dr. David Ladipo, Managing Director of Azura said in a joint statement: “ACEI’s investment will exert a transformative impact on our business and accelerate Azura’s drive to create a flagship, multi-asset, power generation company.

The development of Nigeria’s electricity supply industry is a vast undertaking that requires a long term commitment from all parties.

“Together with ACEI, the Federal Government of Nigeria, state governments and our partners and advisers, we are committed to the creation of an indigenous world class business that will provide electricity to the people of Nigeria and, in so doing, will boost the country’s industrial growth, its job creation and its social welfare.”

 
[Daily Independent]