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Power Project: Tinubu’s government to get $2.2 billion from South African firm

November 20, 2023
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Power Project: Tinubu’s government to get $2.2 billion from South African firm
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Monday, November 20, 2023

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TINUBU; LANTERN IN DARKNESS

President Bola Tinubu and Lantern In Darkness]

Sun Africa LLC has pledged to support President Bola Tinubu’s government with $2.2 billion to provide vital power infrastructure for Nigeria.

This was announced in a statement on Sunday by Bolaji Tunji, spokesman for the power minister.

The commitment, formalised during the week, was disclosed by power minister Adebayo Adelabu after a meeting with representatives of Sun Africa led by its chairman, Goran Rajsic, said the statement.

The minister said the project’s initial phase would focus on delivering 961MWp of solar photovoltaics infrastructure and 455MWh of battery energy storage, valued at approximately $2.2 billion.

“Sun Africa, with its partners, is set to implement this transformative project in the coming months,” he said.

According to the minister, as Africa’s largest economy, Nigeria faces significant demands for new power infrastructure to support economic needs and transition to a sustainable power mix.

“The commitment from all parties involved ensures a close collaboration to execute this vital renewable power infrastructure, addressing the nation’s requirements,” said Mr Adelabu.

Mr Rajsic thanked the partners for their support in designing the cutting-edge project, featuring leading solar PV and battery storage technologies, financed with affordable, long-term debt under OECD guidelines.

The OECD guidelines are for ‘Multinational Enterprises on Responsible Business Conduct’; the guidelines are recommendations jointly addressed by governments of multinational enterprises to enhance the business contribution to sustainable development and address adverse impacts associated with business activities on people.

He said Sun Africa’s financing partners, ING Bank and Citi, had also emphasised their commitment to up to $10 billion in financing projects in the coming years.

Mr Rajsic said, “This support extends to both the initial phase and future developments. Additionally, Sun Africa is collaborating with Sterling & Wilson Renewable Energy Limited, its Engineering, Procurement and Construction (EPC) partner, by playing a pivotal role in providing services for the initial project phase.

“The Joint efforts signify a remarkable milestone in advancing sustainable and reliable energy solutions for Nigerians, aligning with the commitment to driving positive change through innovative renewable energy solutions.” 

(NAN)

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