The Nigerian Federal Government today handed over Sapele Power Plc. To Eurafric Power Ltd. in culmination of a transaction supported with a $51 million credit facility provided to Eurafric by the African Export-Import Bank (Afreximbank).
With the handover, Eurafric completed the formal acquisition of 100 per cent of the equity stake in Sapele Power Plc., owner of a 1,020 megawatt thermal plant located in Ogorode, Delta State of Nigeria. The sale of the plant was carried out by the Bureau of Public Enterprises under the government’s power sector privatization programme.
Tony Onoh, chairman of Eurafric Power ltd., received the certificate transferring the ownership of the plant from Godknows Igali, representative of Nigerian Vice President Namadi Sambo, who is also the Chairman of the National Council on Privatization.
The Sapele Power Plant consists of six steam/thermal turbines with sub-critical boiler units and four gas turbines.
The facility provided by Afreximbank to Eurafric is intended to enable the company to implement capacity revamp and to effect operational efficiencies at the plant.
Eurafric acquired the privatized power plant at a total cost of $201 million, including $60 million in equity contribution.
Afreximbank indicated that it supported the transaction because it believed that a viable power sector was vital for facilitating trade since it drove production and enhanced the creation of a viable economy.