10 July 2012 – The government of Nigeria has signed the latest in a series of Memoranda of Understanding (MoUs) with major international electrical companies, to facilitate the production of 10,000 MW of power in the country. In early July it signed a MoU with South Korean company Daewoo Engineering and Construction Company, which in addition to agreeing to facilitate the production of 10,000 MW in Nigeria has undertaken to provide 20% equity in the various projects identified under the scheme.
Daewoo will also provide advice and guidance on electrical production and construction of power projects to companies wishing to do business in Nigeria under the agreement. Nigeria’s minister of power, Professor Bart Nnaji says that such MoUs will replace the old system of contractors coming to the country simply to work and get paid, with investors willing to join in the expansion of the power sector.
The Nigerian federal government has previously signed MoUs with US Exim Bank to provide US$15 billion to the Nigerian power sector and with Siemens of Germany to assist in the provision of 10,000 MW of power generation infrastructure in the country and 10% to 15% equity in new power generation stations.
MoUs were also signed General Electric of the United States and Electrobras of Brazil under identical terms with the one signed with Siemens.