NNPC Secures $1.16m US Grant For Abuja Power Project
By Iheme Kelechi 30 days ago
United States Trade and Development Agency (USTDA) and Nigerian National Petroleum Corporation (NNPC) have concluded arrangement to sign a $1.16 million U.S dollar grant as part funding for the NNPC-Abuja Independent Power Project (IPP).
This was disclosed in a statement by Mr Samson Makoji, Acting Spokesman for NNPC, in Abuja on Thursday.
According to Mr Samson, the arrangement was as a result of the outcome of a business meeting between the Management of NNPC and USTDA at the NNPC Towers, Abuja.
Both parties agreed to close out the deal on Dec. 1, stated Makonji, adding that the power project was modelled to generate 1,350 megawatts of electricity which will alleviate the power shortfall in the Country.
Malam Mele Kyari - Group Managing Director of NNPC, said that the plan by the corporation to build the 1,350mw power plant in Abuja was part of the national strategy to monetize the abundant natural gas resources in the country.
He went further to state that the USDTA grant will complement the ongoing feed project so as to make the Abuja IPP initiative more bankable for strategic investors’ participationRelated: Anambra State: Frequent Prayer Sessions About To Cause Problems In Markets, Commissioner Sues For Peace
“As a state-owned oil company and enabler organisation, we know that our investment in the Abuja 1,350mw IPP will increase energy supply level with great impact on the nation’s economy."
“Therefore, the USTDA grant is timely to make it a bankable project that would attract foreign direct investment into the country,” he said.
Malam Kyari assured the U.S. team that every money given as grant to the corporation would be fully utilised and accounted for.
“This company is focused on making our systems and processes transparent and accountable and that is why we are engaging world-class institutions with a good track record in the execution of our projects,” the GMD explained.
He called on the USTDA to look beyond feasibility studies to the actual delivery of the project, stressing that the power plant project has a lot of viable investment opportunities.
In her remark, the Country Manager, Power Africa and the leader of the USTDA delegation, Jullian Foerster, stated that her organisation was determined to work with the corporation to sign off on the grant not later than Dec.1.
She said that USTDA was open to other business opportunities in the coming year (2020), noting that NNPC’s strategic role as a key player in the oil and gas industry made the U.S. Agency to “jump at the opportunity to work on this deal” of providing support in the form of a grant.