The Ewekoro power plant is located in the Nigerian state of Ogun. Its recent project will more than triple the Ewekoro power plant’s output in Nigeria, enhancing 1.4 million households’ access to electricity and fostering the nation’s economic development.
According to the agreement, Lafarge Cement should convert Lafarge Nigeria’s 90 MW captive dual-fuel power plant into a 310 MW gas-fired and extremely efficient internal combustion engine power plant. The project entails making a portion of the plant’s current captive capacity available to the national grid.
As part of a power purchase agreement with the National Bulk Energy Trading Company, it will also construct a new 220 MW engine power plant that will be linked to the national grid.
Lafarge Nigeria is the chief manager of the deal, which involves the International Finance Corporation (IFC) and Wärtsilä. IFC will offer financial and commercial structuring through IFC InfraVentures, its Global Infrastructure Project Development Fund. Wärtsilä will build and manage the power plant, and Lafarge will oversee the project as a whole. About $400 million will be invested by the consortium.
Reported on 24th September 2014
Nigeria to construct a new $400m, 260MW power plant
The Nigeria Minister for Power, Mohammed Wakil, has signed an agreement that will see the construction of a new 260MW power plant in Ewekoro, Ogun state. The Minister has described the event as a milestone, which underscores the need to fast-track the nation’s ongoing privatization exercise described as the biggest in the world.
The new 260MW power plant deal brings on board the International Finance Corporation (IFC) – a subsidiary of the World Bank as the financier. Other financiers are Wartsila-Development and Finland-based Financial Services Company. The deal was arranged by Lafarge Nigeria Limited.
President Goodluck Jonathan’s commitment to having “nothing derail the power sector reform” has, according to the Minister, helped in the execution of the deal.
The minister also called for genuine investors to take advantage of current Nigeria’s conducive environment in terms of the legislative framework, market depth, and political will to invest in the country because it assured them of high returns on their investment. He added that the president had urged all ministers to attract foreign investors.
According to Lafarge CEO, for Nigeria and Benin, Guillaume Roux, the new 260MW power plant project would be realized in record time. He added that World Bank has supported Nigeria’s power sector privatization exercise which is still ongoing. The CEO said Lafarge group would support the sector by leveraging all resources needed.
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Lafarge has been at the forefront of calling for additional power generation and has announced a commitment to release additional power from its cement plant to the national grid. On completion, the plant will help increase the nation’s power generation capacity, which forms a substantial leap for the supply value chain in Nigeria. As per the joint agreement, the 260MW power plant is expected to produce at least 220MW which will be channeled to the national grid.