Released August 29, 2013 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--If all the power plants in Nigeria's project pipeline come to fruition, the country could see its drastic electricity supply shortfall reduced to manageable proportions over the next 10 years. But the "if" is a big one, based on past performance and government promises.
Having said that, there are two projects now being developed that together could add almost 2,000 megawatts (MW) to the national grid.
Transcorp, which is majority-owned by Heirs Holdings (Lagos, Nigeria), has completed funding for the $300 million Ughelli power plant in the state of Delta. This project is part of the company's commitment to the U.S.-backed Power Africa initiative, which is aimed at fast-tracking the development of the continent's power sector.
Transcorp Ughelli Power Limited (TUPL) signed a cooperation agreement with General Electric (NYSE:GE) (Fairfield, Connecticut) for the development of the sector, and last week paid the $225 balance to Nigeria's Bureau of Public Enterprise for the 1,000-MW plant. The plant was unbundled as part of the privatization of the Power Holding Company of Nigeria. The debt financing facility for the acquisition of the plan was co-arranged by the local United Bank of Africa and Africa Finance Corporation, and co-financiers First City Monument Bank and Fidelity Bank.
TUPL plans to expand the plant's generating capacity from 300 to 1,070 MW over the next five years.
Running parallel to the U.S.-driven Power Africa initiative is China's development of power and infrastructure in Nigeria. The federal government has signed a memorandum of understanding (MoU) with HTG/Pacific Energy (China) for a $3.7 billion coal-to-power project, which will include a 1,200-MW power plant.
Foreign banks will be the main source of funding for the project, which is scheduled for commissioning within the next four years. The project is sited in Enugu state and will be fired with coal from the Ezima mine.
The memorandum of understanding allows Pacific Energy to move into the Ezima complex to begin exploitation of the rich coal resources within the area. The company will perform its own investigation to confirm estimated and confirmed reserves in the area that could feed the project for 50 years. The project investment will be in two parts, covering the coal mine and the power plant.
For related information, see August 21, 2013, article - Almost 400 Companies Bid for 10 Nigerian Power Plants, and July 2, 2013, article - Obama Launches $7 Billion 'Power Africa' to Boost African Power Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Having said that, there are two projects now being developed that together could add almost 2,000 megawatts (MW) to the national grid.
Transcorp, which is majority-owned by Heirs Holdings (Lagos, Nigeria), has completed funding for the $300 million Ughelli power plant in the state of Delta. This project is part of the company's commitment to the U.S.-backed Power Africa initiative, which is aimed at fast-tracking the development of the continent's power sector.
Transcorp Ughelli Power Limited (TUPL) signed a cooperation agreement with General Electric (NYSE:GE) (Fairfield, Connecticut) for the development of the sector, and last week paid the $225 balance to Nigeria's Bureau of Public Enterprise for the 1,000-MW plant. The plant was unbundled as part of the privatization of the Power Holding Company of Nigeria. The debt financing facility for the acquisition of the plan was co-arranged by the local United Bank of Africa and Africa Finance Corporation, and co-financiers First City Monument Bank and Fidelity Bank.
TUPL plans to expand the plant's generating capacity from 300 to 1,070 MW over the next five years.
Running parallel to the U.S.-driven Power Africa initiative is China's development of power and infrastructure in Nigeria. The federal government has signed a memorandum of understanding (MoU) with HTG/Pacific Energy (China) for a $3.7 billion coal-to-power project, which will include a 1,200-MW power plant.
Foreign banks will be the main source of funding for the project, which is scheduled for commissioning within the next four years. The project is sited in Enugu state and will be fired with coal from the Ezima mine.
The memorandum of understanding allows Pacific Energy to move into the Ezima complex to begin exploitation of the rich coal resources within the area. The company will perform its own investigation to confirm estimated and confirmed reserves in the area that could feed the project for 50 years. The project investment will be in two parts, covering the coal mine and the power plant.
For related information, see August 21, 2013, article - Almost 400 Companies Bid for 10 Nigerian Power Plants, and July 2, 2013, article - Obama Launches $7 Billion 'Power Africa' to Boost African Power Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
