The Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) have reached an agreement to sign a 1.16 million dollar grant as part funding for the NNPC-Abuja Independent Power Project (IPP).
This was made known in a statement issued by NNPC signed by the acting Spokesman Mr Samson Makoji issued on Thursday in Abuja. He said that the arrangement was the outcome of a business meeting between the Management of NNPC and the USTDA at the NNPC Towers.
Makoji noted that both parties agreed to close out the deal on Dec. 1, adding that the IPP was modeled to generate 1,350 megawatts of electricity to alleviate the power challenge in the country.
The Group Managing Director of the NNPC, Malam Mele Kyari, said that the plan by the corporation to build the 1,350mw power plant in Abuja was part of the national strategy to monetize the abundant natural gas resources in the country.
He added 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.
“As a state-owned oil company and enabler organisation, we know that our investment in the Abuja 1,350mw IPP will increase energy supply level with great impact on the nation’s economist.
“Therefore, the USTDA grant is timely to make it a bankable project that would attract foreign direct investment into the country,” he said.
The GMD assured the U.S. team that every money given as grant to the corporation would be fully utilised and accounted for.