US, Korean Consortium to Invest $10bn in 4,185MW Ebonyi Power Project

Olawale Ajimotokan in Abuja

A consortium of investors from the US and South Korea has offered to invest the sum of $10 billion in the Ebonyi Independent Power Project (EIPP) by the end of September.

The investors made commitment to invest in the Nigerian energy sector Thursday when the delegation led by Terey Moreland, Chairman Hodges and Bakersfield Limited, paid a visit to the Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha.

Moreland told the SGF that their legal and management partners had evaluated that the project would be carried out in three phases.

The EIPP is a public-private partnership between Hodges & Bakersfield Limited and the Ebonyi State Government and seek to develop a 4185MW Power Plant to be sited at the West Bank of the Cross River on Oferekpe/Akahufu Inyimagu land in Ikwo Local Government Area of Ebonyi State.

The project is owned 80 per cent by the Hodges & Bakersfield Limited and 20 per cent by the Ebonyi State Government. The funding of this project is 100 per cent by Hodges & Bakersfield Limited through an equity and debt arrangement.

The value of the first part of the project is worth $3 billion.

The completed plant will consist of 9 x 310MW Gas Turbine Units. The construction process will be in four phases. The First – Third phases consist of three gas turbines of 930MW each whilst the fourth stage consists of 1395MW Combined Cycle Steam Turbines. The projected gas requirement of the completed plant is 221 billion cubic feet per year. Phase 1 requires 73.67 billion cubic feet per year.

Moreland said their visit to the SGF was to secure government’s support in acquiring licence and in getting gas for the power project here in the country. Moreland gave assurance of their capacity to finance the project.

He similarly said they had the technical capacity to assist the Nigeria National Petroleum Company (NNPC) by laying the pipeline that will be connected to the grid.

The SGF expressed federal government’s full commitment to investing in infrastructure that will meet the needs of its citizenry.

The SGF told representatives of the consortium that government would welcome business men with genuine intention to do business in the country as there is an enabling environment for investment to thrive.

Mustapha further assured the group that government would do everything possible to support them wherever there are constraints in getting approval and acquiring licence from Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC), Ministry of Power, Works and Housing and Ministry of Environment that would enable them to carry out their projects in energy.

“We want to invite the whole world to come and invest in Nigeria. As a country and government, we are interested in issuance of any licence and we will treat it with dispatch,” he added.

He presented to the investors the areas of the country’s concern as in tackling the 17 million housing deficit, energy distribution because of the rise in the generation among other things.

He advised them to do a formal letter that will contain details of the projects and also enumerate areas of constraints.

Apart from Moreland, the other individuals at the meeting with Mustapha included Cyril – Solicitor to the Project, President & CEO Company : DongGang Agro-Specialised Industrial Complex Development Co. Ltd Jang Wonjin An, Chul Gyu – Wonjin, Choi, Minhyun, Onyebuchi, Anyaku Alicho, Duze Musa Theobald, Ituah Ighodalo, Carnahan Daniel Lawrence, Kim Chol Koun and Director- Keumho Solar Co. Ltd, Project Relation- Gas Pipeline Supplier, Kim Jimoh.