Nigerian energy firm Geometric Power and US-based General Electric (GE) have signed an agreement to jointly develop a 1,080MW power plant in Nigeria.
As part of first phase of the project, the partners will construct 500MW of power generation capacity by 2019, with a potential investment of $800m.
Reuters cited Geometric Power CEO Bart Nnaji as saying that UK-based Standard Chartered Bank will serve as financial adviser for the first phase.
Nnaji said: “The power goes to the national grid.”
Negotiations are underway with potential investors from China, Europe and US, to fund for the construction of the facility, with financial close projected by year-end.
Construction of the project is scheduled to commence in early next year in Abia State, southeast Nigeria.
Nigeria planned to invite private investments in its power sector two years ago. However, the country’s power production had standstill at almost 50% of the total capacity.
The current installed power capacity varies around 6,000MW to just over 7,000MW in the power starved country.
Meanwhile, Russia’s Rosatom is also considering developing new nuclear power plants in the country, according to the news agency.