As part of the effort to solve the power challenge in the country, the Nigerian National Petroleum Corporation, NNPC, has concluded arrangement to build 1,350 megawatts of electricity from $1.16m grants in Abuja.
NNPC had stated that the grants would form part of the funding for NNPC-Abuja Independent Power Project.
The arrangement for the grant according to the corporation was made with the United States Trade and Development Agency, UNTDA.
NNPC disclosed that the power plant with the capacity of 1,350 megawatts would be ablr to solve the problem of power generation in the country.
The meeting of both NNPC and USTDA officials was held in Abuja where both sides have agreed to close out the deal on December 1, 2019.
The Group Managing Director, NNPC, Mele Kyari, said the plan by the corporation to build the 1,350MW power plant in Abuja was part of the national strategy to monetise the abundant natural gas resources across the country.
Kyari said the USDTA grant was to complement the ongoing feed project in order to make the Abuja IPP initiative more bankable for strategic investors’ participation.
He said, “As a state-owned oil company and enabler organisation, we know that our investment in the Abuja 1,350MW IPP will increase energy supply level with great impact on the nation’s economy.
“Therefore, the USTDA grant is timely to make it a bankable project that would attract foreign direct investment into the country.”
The GMD who promised to judiciously utilise and properly give account of the grant said the power plant reduce power challenge in Abuja and its environs.
The company is focused on making our systems and processes transparent and accountable and that is why we are engaging world-class institutions with good track record in execution of our projects,” Kyari said.
He called on the USTDA to look beyond feasibility studies to actual delivery of the project, stressing that the power plant project had a lot of viable investment opportunities for all investors.
The Country Manager, Power Africa and the leader of the USTDA delegation, Jullian Foerster, said her organisation was determined to work with the corporation to sign off on the grant not later than December 1, 2019.
She said that USTDA is ready for business opportunities with the corporation in the coming year.