A consortium of foreign lenders is ready to invest  $600 million in the construction of a 1,500 megawatts (Mw) power plant in Okija, Anambra State, the Chief Executive Officer, Century Power Generation Limited, Dr Chukwueloka Umeh, has said.

The banks are to provide the funds, once the firm is ready with the predocumentation required for the construction of the plant.

Umeh, who spoke on the phone in Lagos, said local lenders had agreed to be part of the deal. He, however, refused to mention the names of the banks.

Century Power Generation is the utility arm of Nestoil Group, a conglomerate with interest in power generation and provision of gas pipelines, among others.

Umeh said: “A consortium of international banks, in conjunction with some Nigerian banks, has agreed to provide the funding, which is between $600 million and $650million in 2020.  Bigger banks in Nigeria are also going to provide funds.

“The fund required for the Okija power plant is similar to the ones provided for the Azura Power Plant in Edo State. The size of the plant is huge, as it would assist in providing electricity for millions of people in the Eastern part of the country.”

According to him, financial institutions expected Nestoil Group or its subsidiary, Century Power Generation Limited to submit documents, such as Power Purchase Agreements (PPAs), that are necessary for the construction of the project.

“We have been on the issue for some time. We are working to provide the documents for the release of the funds in 2020. By this, we are wrapping up the process of providing the power plant soon. Already, the company has resolved issues  on the allocation of the land for the plant. What needs to be done is movement of machinery to the site of the plant, immediately the funds are ready,” he said.

In 2013, the Federal Government opened the window for private participation in the power sector through privatisation of the sector.

Source: The Nation