The Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) have concluded a deal that will see the pair sign a $1.16 million grant which will be used as partial funding for the NNPC-Abuja Independent Power Project (IPP).
The plant, when complete, will generate 1,350 megawatts of electricity and contribute to the alleviation of the chronic power shortages in the West African country.
The announcement was made following a meeting between NNPC and USTDA official in Abuja. The parties have agreed to finalize the deal by December 1.
A statement signed by the Acting Group General Manager, Group
Public Affairs Division stated that the USDTA grant was to complement the ongoing feed project in order to make the Abuja IPP initiative more bankable for strategic investors’ participation.
The power plant would be fed by natural gas, a cleaner alternative to heavy fuel oil or coal.