President Jonathan flags off first phase of the $1billion Azura-Edo Power Plant

President Goodluck Jonathan has flagged-off the first phase of the $1billion Azura-Edo Power Plant.
The power plant, which is the first fully privately financed Independent Power Plant (IPP) in the country is situated in Ihovbor/Orior Odemwende communities of Edo state.

Jonathan called on communities around the country who are hosts to several federal, state and private sector projects to play their roles, as there is development in partnership, while saying that the Federal Government will continue to ensure that the growth of the electricity industry becomes self-sustaining and sustainable.

He said “I want to use this opportunity to call on all the local communities around the country who are hosts to several federal, state and even private sector projects, that have been hindered by community disruptions, to recognize that in partnership there is development and so, everyone must play their roles”.

“My administration is fully committed to continuously improving the framework and enabling environment based on sound policy formulation, access to long-term low interest finance, and transparent and consistent regulatory guidelines,” he added.
The first phase of the Azura-Edo IPP is a 450 MW green field, open cycle gas turbine Power power station, with a total capital cost of $735 million. It represents the first phase of a 1,500 MW power plant facility.

Besides being the first fully financed private sector power plant project, it is also the first power generation project to receive the World Bank Partial Risk Guarantee and Multilateral Investment Guarantee Agency (MIGA) support.
The project has a 450megawatts of new generation capacity, and it’s expected to be completed by early 2017.
The plant has attracted almost a billion dollars, mainly in foreign direct investment, into the power sector; comprised of $700 million in construction of the power plant, and $300 million in associated gas supply infrastructure.

Jonathan said he was greatly encouraged at the progress made so far, towards reforming the power sector, since the launch of the Road Map on Power Sector Reform back in August 26,2010.
He said the flag-off of the project is the first signal from the global financial industry, that the years of work that the federal government has dedicated to the reform of the power sector, in order to attract private sector developers and financing, is finally yielding results.

The President also said of the Azura project; “We have laid a strong foundation on which we are building a sound and sustainable electricity industry, with great expectations for robust growth in the sector. However, success in any endeavour does not happen by accident, but is facilitated by sound decisions, conscious effort, and immense persistence.”

Furthermore, he stated that his government is committed to repositioning the Nigerian power sector as a pivot for the attainment of the nation’s developmental targets.
“We are also maintaining our policy push for increased diversification of our energy, expanding investments in large hydro power projects through public-private partnerships, and the provision of necessary support to accelerate the exploitation of our coal resources” he said.
He also urged the sponsors of the project and their contractors to make certain that they meet the estimated completion date of early 2017.

The Edo state governor, Adams Oshiomhole, in his remarks, stated that the financial support received by the investors from the international finance community confirms that Nigeria is still an investment haven.

Oshiomhole said that Jonathan has fostered investors’ confidence through the privatization of the power sector, adding that the success recorded by the Jonathan’s administration in its power reform has further shown that government works better with synergy and collaboration between federal, states, ministries and other government agencies.

The co-Managing Director of Azura West Africa, David Ladipo, tsaid that he project which is still at its first phase is being financed by the World Bank, Africa Development Bank, United States Development Bank, China Development Bank and a consortium of local banks in the country.
He added that the project would create 1000 direct and 20,000 indirect jobs during its construction assuring that Azura would continue to be a key driver in the power industry to ensure an increase the nation’s total grid-based power generation capacity for a long time to come.