[size=14pt]Fed Govt, GE in $10b power deal[/size]
By Emeka Ugwuanyi

[img]http://www.thenationonlineng.net/2011/thumbnail.php?file=Barth_Nnaji_652768961.jpg&size=article_medium[/img]
Prof. Barth Nnaji Prof. Barth Nnaji

A MEMORANDUM of understanding (MoU) involving Federal Government and the General Electric (GE Energy) has been signed in London.

The deal covers a N175 billion (about $10 billion) investment in power plants with capacity to generate 10,000 megawatts.

Power Minister Prof. Barth Nnaji, who led a delegation to sign the agreement at the Nigerian High Commission in London, told reporters that the GE has interest in acquiring at least 15 per cent stake in power plan.

The development countered earlier reports that the British firm wanted to build a 10,000 megawatts capacity plant in Nigeria.

The investment could be sunk into existing plants or on new plants. But such investment will be after the conclusion of the privatisation of the power sector, The Nation learnt.

According to the minister, the GE’s move is the highest expression of investment support toward the govern-ment’s aspiration of achieving 40,000 megawatts generation by 2020.

He said: “To have a company willing to work with us on the delivery of 10,000MW is a show of confidence in Mr. President’s vision.

“Even if the equity is one per cent, it is still significant because it will take us somewhere. And with 15 per cent, Federal Government will provide the balance.”

He explained the government will not be involved in any of the projects, but will provide guarantees for the private sector participants.

He said: “The local content will be huge power because GE and any other foreign investor must have local partners.”

The minister said what the government and GE had signed after a meeting with President Goodluck Jonathan in Abuja, was a series of general agreements for support in various sectors of the economy including power, transportation, especially rail, and health.

He said: “What we are doing today is the culmination of a series of work done, some behind the scenes, and some in the open. With the meeting between President Goodluck Jonathan and the Chairman of GE last month in Abuja, there was a narrowing of areas of focus for the country and GE to collaborate on specific areas of focus.

“Accordingly, GE developed MoUs specific to the various sectors, and today, the MoU we are signing relates to power alone.”

Nnaji described the $10 billion as very ambitious in the face of the cash crunch at the international capital market and noted that with GE’s cash and government’s bank guarantees, the projects would become much more bankable, as investors can approach financial institutions to raise funds.

He noted that the relationship between the government and GE is a long term one, as the energy company has moved from just being a supplier of power equipments in the country, to being an equity investor.

“The MoU creates a relationship that will allow GE to not just sell turbines to Nigeria, but also have equity participation in collaboration with the government and private sector,” he said

GE’s President, Sub-Sahara Africa, Mr. Jay Wileman, said with the signing of the MoU, things can get rolling because now is the beginning of the real work of delivering power in the country.

He recalled the discussions with GE started in 2009, adding that with the MoU, Nigeria has become “the epicentre of GE’s focus and we will be bringing in our experience, and partners to demonstrate our capacity.”

Nigeria’s Acting High Commissioner in Britain, Ambassador, O. Anozie, said the epoch making event complements Mr. President’s reform agenda, particularly in the area of power which he identified as a prerequisite for economic and national development.

http://www.thenationonlineng.net/2011/index.php/news/41066-fed-govt-ge-in-10b-power-deal.html

we are finished!
These americans will show us peper!
Steady power supply with enslaving tarrif!
Anyway sha
trust naija
if NEPA too cost we roll out our tiger generators!
Gbagaun!

moderattor: we are finished!
These americans will show us peper!
Steady power supply with enslaving tarrif!
Anyway sha
trust naija
if NEPA too cost we roll out our tiger generators!
Gbagaun!

Might still be cheaper than money spent on fuel for gen, we could not do it ourself

Former president Obasanjo could not provide electricity with $15 billion when he was in power, so how will only $10 billion provide electricity this time around?

Nice.

Btw, GE is an American firm, not British. Thomas Edison..

Febup: Former president Obasanjo could not provide electricity with $15 billion when he was in power, so how will only $10 billion provide electricity this time around?

$10 Billion is definitely not going to cut it, for the whole nation,or even a 10th, at this point -- that time is past. However, $10 billion can still make a significant dent in the power needs of this nation, as it stands today. Just that I am not sure the Federal Government being in charge of such a project would work out this time. Just by past experience, I would rather funds be made available to aid states with serious plans, in building generating capacity.

Not certain, however, why the federal Government is still in to the power generation area, even after suggesting that states take over. Does the Federal government expect that it will have to continue spending on generation projects even as more and more states start spending money on the same?

I pray it works out.

Ah ah!!

How is $10 billion equal to N175 billion?
Or am I missing something on the new exchange rate?

Point of correction,$10 billion is approximately 1.75 trillion Naira as against 175 billion Naira stated by the poster.I think the amount will go long way in improving the power situation in the country.The implementation is of more paramount importance,we are tired of hearing this and that and no concrete action.

**yawns**
Everything that involves yanks companies in Nigeria have always been made believe projects. Why can't we look else where? Nigeria will never learn. American companies on the African continent are frauds, go figure. Wasted time, wasted ink, and wasted paper on a pipe dream. I would have preferred a South African or Asian company.

i have gone to ge website, i cant find sure a deal.

I hope and pray it is true and it works.
If it works, I hope we will not forget this date ten years to come when they start making profits.

Ten billion dollars isn't small money and if we fail to do it ourselves, let serious business men come in with their money and do it.
When darkness becomes history, I hope wouldn't come out and start claiming giants and rip offs

This is the real deal. A company like GE that makes more money than the whole of Nigeria, Ghana, Benin, etc put together will certainly be of benefit to us. More useful than imaginary 3rd party Austrian vs Chinese power companies that had been contracted with over $15B by the previous adminstrations.
GE is the company where other developed countries go for assistance with energy, medical equipments, and even aircraft engines.

Story story...
Story!...

Are you sick of tribalists talking trash on NL?

Do you live in Washington DC area?

Would you like to confront an Igbo man or Yoruba man live?

Show your interest at ohafiawardance@yahoo.com

We can set it up.

GE can do it! if dis deal's true though

I hope say this company know wetin dem dey do sha. The same reason why NEPA no gree function fit no make them function as well... Anyway, anythin wey go give us hopes go help, but omo the thing go cost o.

vaLasce:
Story story...
Story!...

was about 2 say same thing! Once upon a time, time time

shymmex: **yawns**
Everything that involves yanks companies in Nigeria have always been made believe projects. Why can't we look else where? Nigeria will never learn. American companies on the African continent are frauds, go figure. Wasted time, wasted ink, and wasted paper on a pipe dream. I would have preferred a South African or Asian company.

Wen asians like lebanese,chinese,indians are using ur fellow Nigerians like slave.its sweeter and respectable working wit american firm in all ramfication.wich american coys are fraud in Nigeria.even our indigeous coys r fraudulent too so wat are u saying?

We'v had enough of these......federal govt is embarkin of this 2day, on that 2maro and so on. When wil d 2ru actualizatn of these so cald 'projects' surface

onyewec3:

Wen asians like lebanese,chinese,indians are using ur fellow Nigerians like slave.its sweeter and respectable working wit american firm in all ramfication.wich american coys are fraud in Nigeria.even our indigeous coys r fraudulent too so wat are u saying?

Tell me one successful American project in Nigeria or West Africa? They only have exploitation corporations like Chevron and Exxon Mobil. American companies don't give a phuck about Nigeria. They see the Nigerian establishment as utterly corrupt - and they will join in the corruption.

What happened to corporations from countries like:

- China.
- South Africa.
- Brazil.
- South Korea.
- Iran (yes Iran).
- Canada.
- Germany

American and British companies in Nigeria are fraudulent! Another Halliburton project in Nigeria!

Low IQ and utterly corrupt leaders + stupid, retarded, and gullible followers = Nigeria

Private sector driving this investment and it will succeed. Obasanjo failed because the IPPs were funded by govt

GE is a reputable company, they will do a good job for sure and maybe put an end to this never ending power problem. However, the government should clearly lay down rules and regulations (not unnecessary or frustrating ones) which they should strictly adhere to.

"But such investment will be after the conclusion of the privatisation of the power sector, The Nation learnt." what is this?

OBJ failed because d entire IPP stuff in his time was a huge fraud. It was money for his 3rd term thots.

As long as i am concerned,its all abt fraud and that thing wont stop in this country,they know power is important to everyone so whatever they tell us,we dont have choice than to accept becos we be all muniru's and munira's lol..Naija gvt save us frm all dis stories..obasanjo tenure,15b$ disappear till date nothing to write home abt,the country is full of too many strong people that are above the law

Good News!

Well its a good step in the right direction.

With all the jobless electrical and mechanical engineers our universities produces year-in year-out, cant they buld a power plant ??, this kontery don tire me ohh!

the same good old stories. this same jonathan declared emergency on the power sector and alongside this professor, they have been investing and sharing funds like their predecessors.
pdp cannot give us light because they are made up of men of darkness.it is really really unfortunate that in a very religious country like ours, dark powers are enjoying upper hand.
useless and shameless stories with endless lines.
we will soon hear how the generator cabals are frustrating the efforts of the FG but the only thing the cabal will never frustrate is increment of tariff.

If GEJ continues with this type of development programs, and is able to accomplish like 30% of what he sets out to do before his term ends, it would be a pleasure to vote him once more come 2015. This are the type of news we need here, and not some rubbish about Awo Vs Ojukwu posted by the little-minded and backward members of this blog.
More of this Beaf....If you keep posting stuff like this, then your actually doing a real PR job and deserve a great of complement.

Febup: Former president Obasanjo could not provide electricity with $15 billion when he was in power, so how will only $10 billion provide electricity this time around?

then, who was d minister of power? Wat knowledge had he in d power sector. No matter d amount, management is very very important.