Following the signing of share subscription agreement with the management of Azura Power West Africa Limited for the construction of 1000 megawatts power plant, Edo State government on Friday said the project would create the template for the successful development of Independent Power Plants (IPPs) in the country.
Igbinidu Inneh, executive director of Edo State Public-Private Partnership office, who made the remark in Benin City, opined that the state government would also pride itself for its pioneering role in determining the future of Nigerian power sector.
Inneh said the project, which was initially conceptualised in 2010, had been jointly incubated by the Edo State government and Amaya Capital, the key promoter of Azura Power West Africa, as a privately financed initiative under strategic PPP to deliver $1 billion investment in electricity generation and gas supply infrastructure in Edo State.
According to him, the Azura-Edo IPP is therefore expected to create the template for the successful development of IPPs in Nigeria going forward.
BusinessDay reports that the Edo State government and the management of the power company had last Thursday signed share subscription agreement.
Inneh added that the agreement was the reaffirmation of the commitment of the state government to the successful development of the project as well as a demonstration of the confidence co-investors and developers had on the investor-friendly environment.
Under the agreement, the state government has provided land as part of its contributions to the development of the project in addition to other incentives such as tax incentives or waivers, among others.
The financing has been 100 percent by a number of quality investors, he said, which is a clear demonstration of the confidence the international investors have in the Nigerian economy.
He said the Azura Power West Africa Limited, a 1000 megawatts gas powered IPP, when completed would generate 1000 megawatts to the national grid and it would be constructed in two phases of 450 megawatts and 550 megawatts, respectively.
The PPP director posited that the project, which is being financed by $530 million debt, had pooled together the finest club of debt providers led by Standard Chartered Bank and quality equity investors who bring to the table $220 million of equity capital.
He further disclosed that the project involved a $300 million investment, which is being made by Seplat Petroleum Development Company plc in new gas processing facilities at its Oben Gas Plant.
He said the Oben Gas Plant was part of Seplat’s joint venture with the Nigerian Petroleum Development Company to supply the Azura-Edo IPP with the project’s fuel gas requirements.
The project would be sited between Ihonvbor, Orior-Idumuowina communities, as the ground breaking ceremony for the project is expected to take place next month.
IDRIS UMAR MOMOH
