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Standard Chartered explains role in Azura power project

By BusinessNews Staff on May 8, 2014

Standard Chartered Bank Nigeria has said that the success recorded in the privatisation of the power sector as well as its drive to contribute significantly to the reforms in the sector are major reasons for its financing of the Azura Independent Power Project.

Standard Chartered is leading other banks as the Global Mandated Lead Arranger for the $750m for the Azura IPP, which will be located in Edo state.

The plant is the first foreign private investor-led power project in the country, which is projected to add 450 megawatts to the national grid in the first phase, and peak at 1,500 MW on completion.

Speaking on the role of the bank in the project, the Managing Director, Standard Chartered Bank, Mrs. Bola Adesola, described the Azura IPP as one of the most innovative projects being undertaken by private investors in Nigeria.

She said since poor power supply was a major impediment to the growth of the non-oil sector, there was a need to address the challenge through innovative financing models for investors.

She expressed optimism that the Azura power plant would serve as a template for other investors to learn from and invest in the country’s power sector.

Adesola said, “Today marks the official milestone signing ceremony of one of Nigeria’s first privately funded power plants in 15 years, the Azura-Edo Power Plant.

“The signing coincides with the World Economic Forum for Africa event and reiterates the Nigerian government’s commitment to addressing the country’s power supply gap through positive reform in the power sector.

“The power generation from this transaction is expected to tangibly impact Nigeria’s economic growth and the banks are proud to be part of this, and Standard Chartered in particular is proud to be playing an important role in progressing and structuring the transaction by acting as the structuring bank and the Global Mandated Lead Arranger.”

[Punch]

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