10,000MW: GE Delivers its commitment to Nigeria

The GE CEO of Grid Solutions/Energy Connections, Africa, Dr. Lazarus Angbazo has maintained that the needs of Nigeria remains the same not minding the change of government and party in Nigeria.
He stated that the company did not commit to invest $10billion in the power MoU signed at the Nigerian High Commission in London in March 2012 rather pledged to collaborate with government and other investors, as well as project sponsors, to deliver 10,000MW of incremental power.
“Some people translated that into $10 billion. Now, could it be $10 billion? It could be more but we don’t talk in terms of $10 billion; we talk in terms of actual output because we have seen projects where 1,000MW has cost this country more than $2 billion,” he stated.
“What we signed in that power MoU, which originated from the company-to-country agreement, was that GE, working with the Federal Government of Nigeria, will invest in the development of new power generation capacity of up to 10,000MW of power – incremental power, which means that GE is going to work with investors, private sponsors of projects and if government also wants to invest in projects, GE will also look at those projects and co-invest. We have done that. If you look at our portfolio of projects in Nigeria, we have got several projects at several stages of development,” stressed Angbazo.
He further stated that his company continued to invest in Nigeria even at a time projects were cancelled globally because of the crash in oil prices.
GE according to him believes that there is commercial opportunity in Nigeria and the country’s outlook will get better in the future.
The GE boss commended the federal government’s efforts to encourage private investors in the power sector and also listed the challenges facing the implementation of power projects in Nigeria.
“I can spend the rest of the day talking about them but let me just give you some highlights. I think number one on the new developments, which is the IPPs (independent power plants), where we are putting money to private Nigerian firms – just going through development phases with government, whether it is getting their PPAs (power purchase agreements) because if they don’t get their PPAs, the rest of the funding is not going to come through. To get a PPA, you need to get assurance on gas and if gas is not provided, there is no assurance on generated power and if there is no assurance of PPA agreement, there is no assurance of financing. Number three: You also need to get assurance of evacuated power. We know how degraded the grid infrastructure is in Nigeria. I am telling you that we have got issues,” stressed the CEO

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