22 October 2014, Abuja — Three additional Memoranda of Understanding (MoU), geared towards improving electricity generation and distribution in the country was recently signed with private sector investors by the federal government.
The MoU include an agreement for the construction of a gas power plant in Ajaokuta with 3D Hitech System Ltd, as well as investments in Nigeria’s distribution and transmission sectors by SEPCOIII Electric Power Construction Corporation and CGC Nigeria Ltd.
At the signing ceremony in Abuja, the Minister of Power, Prof. Chinedu Nebo said the collaborations were geared to boost generation and distribution of electricity in the country.
A statement from the ministry of power, quoted Nebo to have stated that “the MoU were timely as Nigerians are hungry for power and would still demand for more, even if the output of these MoU were doubled, tripled or quadrupled.”
Nebo also stated that the capacity that 3D Hitech has demonstrated in the test running of the 110MW of power it is currently working on and which will soon be commissioned in Ajaokuta, will go a long way in enriching the national grid.
He stated that Nigeria’s transmission network was fast becoming a major bottleneck in the distribution of electricity, and commended both the CGC Nig Ltd and SEPCOIII for their interests in financing and provision of transmission infrastructure.
According to him, the move was in the right direction while the money being injected into the sector by private institutions will go a long way to revamp the transmission network.
Nebo also assured the investors of government’s support in their commitment to Nigeria’s power sector, adding that the government will remain committed to its reform of the sector.
The statement equally quoted the Chief Executive Officer of 3D Hitech System Ltd, Mr. Patrick Azi to have stated that the ground breaking ceremony for the 500 megawatts (MW) gas fired plant in Ajaokuta, Kogi State, will be held soon. He however said that the plant will be installed within nine months.
Also, the Managing Director of CGC Nig. Ltd, Li Xuhui, was said to have affirmed that the company’s MoU with the government was for financing and execution of transmission projects.
He thus assured of the firm’s commitment to ensure the funds are made available for the strengthening of the transmission network. On his part, the Executive President of SEPCOIII, Zhang Hongsong, pledge that the company will ensure that the supply, refurbishing and replacement of transmission materials are given top priority.
*Chineme Okafor – Thisday