Power: FG, World Bank seal 500mw deal

Power: FG, World Bank seal 500mw deal

The Federal Government, the World Bank, the Niger Delta Power Holding Company and the Nigerian Bulk Electricity Trading (NBET) on Thursday 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 included 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.
Also signed as 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 info 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.
He said the arrangement was the first of its kind for gas supply in the country and reflected the present administration's commitment to increasing power supply.
He stated: “It'll encourage investment in the gas infrastructure and we are certainly looking forward to the multiplier
effects that will come from this. Given the current power situation, we expect that this gas that'll go into the Calabar plant will provide about 500MW of power which is very significant given our current situation. The gas pipeline itself is a feat of some sort, I'm told that it traverses five rivers. That, by itself, is worth celebrating. Even if all we get from social media this evening is an engineering feat, we'll be quite pleased with that.’’
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.
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.
Iheanacho said the signing of the agreements would unlock about $700 million investments in the Nigeria's gas infrastructure.