Everything needed to commence the construction of the $1 billion Azura Independent Power Plant (IPP) in Edo State is on ground, President Goodluck Jonathan has said, noting that the 450 megawatts IPP was a sign of the Federal Government’s commitment to power sector reforms.
“I am pleased to join you today on this history making occasion as we witness the ground-breaking of the Azura Edo Power Project. This initiative is a major milestone in our power sector reforms programme and we are happy to associate with Azura as this model of private sector investment in new generation capacity represents the next logical step in our vision for uninterrupted access to power for our people,” said Jonathan who noted that the “project financed” Greenfield IPP represented a great opportunity for more private sector-led investments in Nigeria’s electricity industry.
“This project is a first in many ways. It is the first fully financed private sector power plant to get to this final stage, under the new framework facilitated by our reform instituted agencies. It is the first power generation project to receive the World Bank Partial Risk Guarantee and Multilateral Investment Guarantee Agency (MIGA) support. It is also the first signal from the global financial industry that the years of work that the federal government has dedicated to the reform of the power sector, in order to attract private sector developers and financing, is finally yielding results,” the president said.
“This 450 megawatts of new generation capacity has attracted almost a billion dollar, mainly in foreign direct investment, into the power sector; comprised of $700 million in construction of the power plant and $300 million in associated gas supply infrastructure,” he said further.
He expressed the government’s commitment to repositioning the Nigerian power sector as a pivot for the attainment of the nation’s developmental targets. He also said the government was working towards diversifying energy source.
Being developed by a consortium of local and international investors led by Amaya Capital Limited and American Capital Energy and Infrastructure, Azura-Edo IPP comprises a 450MW open cycle gas turbine power station; a short transmission line connecting the power plant to a local substation and a short underground gas pipeline connecting the power plant to the country’s main gas-supply. It represents the first phase of a 1,500MW power plant facility to be built on the same site.
Present at the tod surning of the plant include Governor of Edo State, Adams Oshiomhole, Ministers of Power and Petroleum Resources, Chinedu Nebo and Diezani Alison-Madueke amongst others.