Companies from Canada, U.S. and France Target Reforming Nigerian Power Industry

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Chris Cooter, the Canadian high commissioner (ambassador) to Nigeria, has said that there is a global awareness that something massive is unfolding in the Nigerian Power Industry. At a time when a raft of reforms and new initiatives are being applied to the country's power sector, Cooter and his deputy, Jean Gauthier, met Nigerian Power Minister Bart Nnaji at the end of October to identify specific areas where Canada could take part in Nigeria's power plan, according to the country's power ministry.

Canada is interested in bulk trade and is focusing on hydropower, where it could have a high comparative advantage. In response, Nnaji said that Nigeria was ready to take on Canadian partners for two hydroelectric projects, Mambilla and Gurara, from which the combined power output was expected to be a minimum of 3,300 MW. Mambilla is estimated to require an investment of more than $1 billion.

Cooter said Canadian companies were scheduled to visit Nigeria and join other multinationals in bidding for different aspects of the Power Industry. He added that they applauded the efforts to resolve the electricity challenges and galvanize the country's industrial leadership of Africa.

In another significant development, the local company ProGlobal Power Limited has signed a memorandum of understanding with international power companies Finagestion (Paris, France) and Symbion Power LLC (Washington, D.C). ProGlobal International Power Consortium (PIPC) has been established and already has indicated an interest in the Power Holding Company of Nigeria's (PHCN) privatization process, with a view to participating in the development of the power sector. The consortium is reported to be planning a $600 million investment in the country's power sector.

PIPC chairman Robert Ofoegbu said that the consortium had worked on bidding for the Abuja and Enugu distribution companies and expected to submit its bid in the first quarter of 2012, in line with the Bureau of Public Enterprises (BPE) timetable.

Finagestion Managing Director Marc Alberola said that the company was excited by the prospect of helping to light up the country, and expressed optimism that it could bring their expertise to bear in Nigeria, citing its experience in some West African countries.

Paul Hinks of Symbion Power said that the company is ready to bring the technological know-how of the U.S. to deliver sustainable power in Nigeria. For related information, see October 25, 2011, article - U.S. Ex-Im Bank Provides $1.5 Billion to Nigeria's Power Drive, Eyes $220 Billion Infrastructure Projects, and September 13, 2011, article - Nigeria Maintains Pressure on Power Projects and Hydrocarbon Energy Sources.

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