A group of International and local investors in partnership with the Edo State government on Monday announced their preparedness to invest a whopping $1bn in the 450megawatts Edo-Azura Independent Power Plant project.
The IPP, which is being developed in Edo State, is said to comprise of two phases. The first phase, according to the lead sponsor of the project – Azura Power Holdings Limited, would generate 450MW for a total capital cost of $750m.
Speaking at the headquarters of the Federal Ministry of Power, the leader of the APHL delegation, Dr. David Ladipo, described the IPP as a green field project that will be developed from scratch by its investors as opposed to investing in existing facilities.
The lead sponsor of the Azura-Edo IPP, he said, was APHL, which is owned by by Amaya Capital and American Capital Energy Energy and Infrastructure.
A document made available to our correspondent by the power ministry stated that the investment underscored the confidence which investors had in the Nigerian Economy and in the power sector particularly.
It said, “The Azura project reflects the positive multiplier effects created by the capitalisation of the Nigerian Bulk Electricity Trading Company and the concomitant provision of the Put Call Option Agreement being provided by the Federal Ministry of Finance.
“Through this project, the combination of these two sources of lender security simultaneously has unlocked more than $700m of project-financed investment in a large scale IPP and more than $300m worth of investments in gas processing, for a total of $1bn worth of investments.”
APHL’s co-sponsors in the project, according to the document, consist of the Edo State Government; Aldwych International; Africa Infrastructure Investment Fund 2;and Asset and Resource Management.
The lenders to the project are Standard Chartered Bank; Rand Merchant Bank; Siemens Bank; KfW; Stanbic IBTC; FCMB; FMO; World Bank Group; International Finance Corporation; German Investment Corporation; French Investment Corporation; Emerging Africa Infrastructure Fund; ICF Debt Pool; Frontier Markets Fund; Swedfund of Sweden and CDC of United Kingdom.
Meanwhile, Ladipo explained that the investors had met with gas suppliers and were confident that the terms of agreement as to efficient supply of gas would be met.
He said the fund for financing the project is expected to be ready in May this year when work would fully commence on the 100 hectares of land already acquired for building the plant.
Ladipo added that the construction would last for 30 months and expressed the hope that the project will meet the power needs of many Nigerians.
In his address, the Minister of Power, Prof.Chinedu Nebo,assured the investors that the Federal Government was reviewing the various consents and approvals needed by Azura prior to financial close and prior to the issuance of a notice to proceed.
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