Nigeria signs $500m power agreement with World Bank
The Nigerian Government has signed a number of agreements that will add more than 500 Megawatts electric power to the National Grid. This is aimed at fulfilling its commitment to increasing power supply in the country and further tap into the ‘gas to power’ value chain.
Speaking at the signing ceremony, which took place in his office, Nigeria’s Vice President, Professor Yemi Osinbajo said the agreement, which he described as a great achievement for the country, portends a bright future for Nigeria and would greatly improve electricity generation.
He said the project meant to improve gas supply to Calabar Power Plant, would also encourage investment in the power sector.
This is a very significant event for us; we know that it will encourage investments in gas infrastructure in the country. Giving the current power situation in the country, we expect that this gas that will go to the Calabar plant will provide another 500 megawatts of power.
The gas pipeline itself is a feat of sorts as we are told that it traverses five rivers. That by itself is worth celebrating.
Professor Osinbajo thanked the World Bank for always supporting Nigeria, as he sued for future support from the organization.
The Vice President then commended the World Bank and other partners for the confidence in the present administration especially in guaranteeing investment worth about 500 million dollars.
Finance Minister, Mrs. Kemi Adeosun signed the agreement on behalf of Nigeria while the World Bank’s Country Director for Nigeria, Mr. Rachid Benmessaoud signed for the global financial organization.
Speaking to Voice of Nigeria, the Managing Director of the Niger-Delta Power Holding Company, Mr. Chiedu Ugbo, said following the signing of the agreement, the World Bank would provide the Partial Risk Guarantee PRG, for the project.
“This is the first World Bank Partial Risk Guarantee PRG to be signed for the supply of gas in Nigeria. What it means is that it’s a permanent security for the supply of gas we need to put power in the grid and we need gas to do that but the liquidity situation in the market now is such that there could be a breach in payment so the World Bank stepped in to guarantee payment,” the Managing Director stated.
Mr. Ugbo said the Calabar power plant had suffered gas supply in the past but with the signing of the agreement, there would be a steady supply of the product which translates into progress in the power sector.