The Federal Government and Azura Power Holdings Limited Monday signed a $1 billion-financing deal for the flagship 450 megawatt Azura-Edo Independent Power Project (IPP) which is located Edo State.
The project also involves a $300 million investment which is being made by Seplat Petroleum Development Company Plc in new gas processing facilities at its Oben Gas Plant, which is part of Seplat’s joint venture with the Nigerian Petroleum Development Company would supply the Azura-Edo IPP with the project’s fuel gas requirements.
The Azura-Edo IPP is first Nigerian power project to benefit from the World Bank’s ‘Partial Risk Guarantee’ structure which was specifically created to meet the developing needs of emerging markets globally.
It also offers political risk insurance for equity and commercial debt from the Multilateral Investment Guarantee Agency, which is part of the World Bank group.
Speaking at the Azura Transaction Closure Summit in Abuja, the Co-ordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala said the sheer number of investors that participated in the IPP further showed the confidence which the international investors has on the Nigerian economy.
Meanwhile, Governor of Edo State, Adams Oshiomole has commended President Goodluck Jonathan for providing the policy framework which has enabled private sector involvement in power sector.