Power: Nigeria, World Bank seal 500mw deal

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The Federal Government, the World Bank, the Niger Delta Power Holding Company and the Nigerian Bulk Electricity Trading (NBET) yesterday signed agreements that would add over 500 megawatts of electricity to the national grid.

NBET was said to be currently investing about $500 million in the construction of gas processing facility at the Uquo Field in Akwa Ibom state.

The sealed deals include an agreement for a partial risk guarantee between the NDPHC and the World Bank to secure the supply of about 130 million cubic feet per day of gas to NIPP Calabar plant by the Seven Energy.

A gas supply agreement was signed between the NDPHC and the Seven Energy with legal obligations on the gas supplier to deliver gas to the power plant in Calabar, expected to come into force within 90 days.

Vice President Yemi Osinbajo described the agreements as significant as their signing would open up new opportunities for investments in the nation’s gas and power sectors.

The agreements were signed by Finance Minister Kemi Adeosun, World Bank Country Director Rachid Benmessaoud, NDPHC Managing Director Chiedu Ugbo and Seven Energy CEO Philip Iheanacho.

Meanwhile, Vice President Yemi Osinbajo said the Federal Government needs $25billionn annually, for the next 10 years to develop critical infrastructure to a sustainable level.

He stated this at the Aso Rock Presidential Villa in Abuja yesterday during a knowledge-sharing forum on Public Private Partnership jointly organised by the African Development Bank Group and the Ministry of Finance.

He said: “It is estimated that Nigeria requires about $25billion annually for the next 10 years to grow its infrastructure to sustainable levels. It is obvious that this cannot be funded entirely by the public sector which brings the Public Private Partnerships model to the forefront of our considerations.”

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