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AFC to double electricity generation in 18 months

Posted by By Sun News Publishing on 2008/04/22 | Views: 406 |

AFC to double electricity generation in 18 months


Following formal approval of the action plan proposed by the Presidential Committee on Accelerated Expansion of Electricity infrastructure by President Umaru Yar’Adua and the Federal Executive Council (FEC), the Africa Finance Corporation (AFC), a private sector majority owned and managed multilateral international development financial institution, will today launch the bankable due diligence for up to $2.8 billion private sector managed and financed special purpose vehicle (SPV) structured arrangement to help Nigeria double current power supply to 6,000 megawatts in 18 months.

Following formal approval of the action plan proposed by the Presidential Committee on Accelerated Expansion of Electricity infrastructure by President Umaru Yar’Adua and the Federal Executive Council (FEC), the Africa Finance Corporation (AFC), a private sector majority owned and managed multilateral international development financial institution, will today launch the bankable due diligence for up to $2.8 billion private sector managed and financed special purpose vehicle (SPV) structured arrangement to help Nigeria double current power supply to 6,000 megawatts in 18 months.

Accordingly, Minister of State for Energy (Power), Mrs. Fatima Balaraba Ibrahim, has formally conveyed the decision of the FEC to all key ministers, government leadership and other major stakeholders in the power generating, transmission and distribution companies for onward communication to all key local and foreign firms undertaking projects in the power sector.

Besides, Ibrahim has formally introduced all parties concerned to the AFC’s President and Chief Executive Officer, Mr. Austine O. Ometoruwa, as the co-ordinator of the due diligence assessment.

Mr. Ometoruwa, who returned to Nigeria over the weekend after an extensive trip abroad working with international partners to ensure today’s successful launch, said the AFC was committed to helping Nigeria fix the endless power crisis that has trapped the country in increasing poverty and damaged economic growth and social progress despite current record oil prices.

“We understand the enormity of our challenges but remain confident we can all succeed given the leadership clarity and determination of President Yar’Adua to make history here and with the force of God’s strength behind us,” he said.

The spectrum of the intensive bankable due diligence to be completed in six weeks covers:
“Technical engineering and robust evaluation.

This includes designing a bankable economic model to certify and optimise capital expenditure required to achieve physical and financial completion of all projects in generation, transmission and distribution and deliver the immediate 6000 megawatts minimum target. The world’s leading power engineering group, UK’s PB Power Limited, will lead a team of other international power specialist firms working with the AFC Power Engineering and Project Development Groups.

“Management due diligence entails designing and delivering the international management capacity for timely and cost efficient project development, execution and completion, to operate and manage and achieve a bankable power sector in Nigeria.”
The world’s leading management strategy firm, Mckinsey and Company of the USA, will lead this engagement with AFC.

“Financial due diligence to design and deliver a bankable financial model and structure the optimal financing and business plan, and a bankable commercial term sheet for the immediate interim financing and the takeout long term financing that will be subject to a competitive bid by local and international banks. The world’s leading power project financing banks (Citigroup, HSBC, Morgan Stanley, Standard) with the largest local banks, along with specialist foreign financial modeling firms, are working with AFC here.”

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.