NNPC-Abuja Independent Power Project will receive a massive boost, following the agreement reached between the Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) to provide $1.16 million grant as part funding for the project.
According to the Punch, the agreement was reached after a business meeting between top officials of both bodies in Abuja.
Why this matters: The project is an important one for the NNPC because it is expected to deliver 1,350 megawatts to boost Nigeria’s power distribution plans. Also, it is another way to make more money out of Nigeria’s abundant gas resources.
The GMD, NPPC, Mele Kyari said the deal is expected to be fully sealed by December 1st to complement the ongoing feed project that will make the power project attractive for more investors to partake in.
“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.”
Reacting to the development, Jullian Foerster, the Country Manager, Power Africa and the leader of the USTDA delegation, said the grant would be ready by December 1st as all hands were on deck regarding that purpose. She explained that NNPC’s reputation and track record in the oil and gas industry made USTDA consider it for the grant.
The NNPC boss urged the USTDA to intensify its efforts towards the December 1st deadline, noting that the money would be duly 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,” Kyari said.
