TheCable

President Goodluck Jonathan has flagged off the $1 billion independent power project estimated in Azura, Edo state.

It is the first fully financed private power plant in Nigeria.

At the ceremony, the president commended the Edo state government and  Amaya Capital, a private organisation that collaborated with the government on the project, assuring them that the federal government would continue to work with the private sector to develop the economy of the country.

“We are happy to associate with Azura in this private investment. This project is a first in so many ways. It is the first fully financed private power plant, it is also the first power project to see the World Bank financial guarantee and multilateral investment guarantee agencies,” he said.

“This 450 megawatts of new generation capacity will attract almost $1 billion mainly in foreign investment into the power sector. This is made up of $700 million in the construction of the power plant and $300 million associated with the gas infrastructure.

“Without power, the economy cannot grow the way we intend it to grow. The power roadmap has set up the key fundamental issues that needed to be addressed to remove the obstacles of the private sector investment thereby enabling sectoral growth.”

Jonathan added that the fastest way to increase power generation is by completing the integrated national power plant which has been suspended for a number of years.

He revealed that government is empowering an independent electricity regulatory commission as a bulk trader and will capitalize it to the tune of $800 million.

He said plans were afoot to conclude the privatisation of the PHCN successor companies in a transparent process and settling all labour liabilities.

Also speaking, governor of the state, Adams Oshiomhole, expressed delight that the project was being done in the state.

“The decision by the Azura Group and the support that they have enjoyed by both the International and Local Financial institutions is the most potent vote of confidence on the reforms that has been initiated in the power sector,” he said.

“It has shown that you believe that these reforms are meant to stay. It also shows that bringing an investment of $800 million regardless of what is happening in other parts, that this country is still the safest in the continent for both foreign and local investors.

“The power sector is a sector to which the people had virtually given up. The politics of privatizing the power sector is as old as 1999 and we are beginning to see that the private sector is now having renewed confidence in the reforms you have helped to revived.”

However, there was an outbreak of violence at the Benin airport, as suspected political thugs attacked some top government officials of the state, including secretary to the state government, Julius Ihonvbere, and chief of staff to the governor, Patrick Obahiagbon, when Oshiomhole went to receive the president.

It took the intervention of security personnel to restore normalcy.

The Edo state house of assembly is currently engulfed in crisis, as the lawmakers have been torn along party lines.