A consortium of 15 global investors has pulled together $1 billion for investment into Azura-Edo Independent Power Plant which would hopefully add up to 1,500 megawatts of energy to the national grid.
The Azura-Edo Independent Power Plant, a project being developed in Edo State, comprises two phases, the first would generate up to 450 megawatts of power for a total capital cost of $735 million.
Ngozi Okonjo-Iweala, the coordinating minister for the economy and minister of finance, said on Monday that the investments combined two sources of lender security simultaneously unlocking over $700 million of project-financed investment in a large scale IPP and more than $300 million worth of investments in gas processing, totaling $1 billion worth of investments.
The project would be commissioned in a few weeks and specifically takes off in May but will take up to 30 months for completion.
Nigeria currently generates just about 4,000 megawatts but the expected initial 450 megawatts plant from Azura would mean an addition of over 10 percent of the current level.
The lead sponsor of the project is Azura Power Holdings Limited (APHL) owned by Amaya Capital and American Capital Energy & Infrastructure while the co-sponsors comprise the Edo State government, Aldwych International, Africa Infrastructure Investment Fund 2 (AIIM), and Asset and Resource Management (ARM).
Standard Chartered, Rand Merchant Bank, Siemens Bank, KfW, StanbicIBTC, FCMB, FMO (Netherlands), World Bank Group (IFC, MIGA, World Bank), International Finance Corporation (IFC), DEG (German Investment Corporation), Proparco (French Investment Corporation), Emerging Africa Infrastructure Fund, ICF Debt Pool, Frontier Markets Fund Managers, Swedfund of Sweden and CDC of UK are all lenders to the project, the finance minister said in Abuja.
Receiving the consortium of investors in her office, Okonjo-Iweala said this milestone project is also supported with guarantees and insurance coverage by the World Bank and the Multilateral Investment Guarantee Agency (MIGA).
She noted that the Azura project reflects the positive multiplier effects brought about by the capitalisation of Nigerian Bulk Electricity Trading Company (NBET) and the concomitant provision of the Put Call Option Agreement being provided by the Federal Ministry of Finance.
Beyond this, the Azura project, she stressed, has been identified by the ministries of Finance and Power, Nigerian Bulk Trader and the World Bank Group as a “frontrunner” IPP, which would help to leverage additional investments not just for other IPPs but for other participants in the sector.
She further informed that the Federal Government is reviewing those consents and approvals like the Power Purchase Agreement and the Put-Call Option Agreement required by Azura prior to financial close and issuance of a notice to proceed to the EPC contractor
ONYINYE NWACHUKWU, Abuja
