Local banks to fund investors on power projects

Oil Barges Hit Bridge17 June 2013, Abuja – Banks in Nigeria have resolved to join in funding interested local investors of the 10 National Integrated Power Projects, NIPP, when the Federal Government commences their privatisation.

The banks made the resolve at the last Bankers’ Committee meeting that took place at the Central Bank of Nigeria, CBN, headquarters in Abuja, last week.

The NIPPs were built by the Federal Government in partnership with state and local governments to shore up power generation under the Niger Delta Power Holding Company. The plants have combined power generation capacity of 5,45400 megawatts, mw.

According to the Managing Director/ Chief Executive Officer of Stanbic IBTC, Yinka Sanni, “some of the interested investors have started approaching the banks on the projects.”

Sanni disclosed that at the meeting, the banks agreed to provide the funding and by August when the privatisation will commence, more liquidity will be provided by the banks to take care of the project.

“Banks are the institutions that provide funding for such projects, we have been waiting for such opportunities to come and we want to assure all of us that the banks are ready. Already we are discussing with some of these companies in this privatisation process. We will certainly give support to these institutions,” he said.

He said, “Post August, we believe that these institutions need some liquidity to keep some of these assets working efficiently and to provide the level of power that we all need to be happy in the country. I can assure all of us these are objectives that will be achieved not only by government but by Nigerians in general.”

The plants include Alaoji, Geregu, Omotosho, Ihovbor, Calabar, Egbema, Gbarain, Sapele, Omoku and Olorunsogo power stations.

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