Nigeria, Chinese firm sign $1 bn power project

Last Updated: Wed, Dec 12, 2012 07:50 hrs

Abuja, Dec 12 (IANS) The Nigerian government has signed an agreement with a Chinese firm for the construction of a 700 MW power plant in Niger state.

Minister of State for Power Zainab Kuchi and Du Nan, the vice president of Sinohydro-Cneec Corporation, signed the agreement, Xinhua reported.

Kuchi said the plant, to be completed in 48 months, would create more than 1,000 employment opportunities, adding that the local contract components of the project would be handled by Nigerian companies.

She said the project would cost about 163 billion naira (about $1 billion), adding that the EximBank of China would bear most of the cost of the project.

Kuchi said Eximbank would bear 75 percent of the cost of the project while a counterpart funding balance of $309 million had been made available by Nigeria.

On his part, Du pledged that the project would be completed on schedule as the company had the capability to do so. He confirmed that Eximbank would serve as the financier.

The proposal for the project was mooted in 1982.

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