U.S. Ex-Im Bank, Nigerian Ministry of Power Sign Agreement for up to $1.5 Billion to Increase Power Output in Nigeria
October 19, 2011
(Ex-Im Bank)
Ex-Im Financing Will Help Create, Maintain Jobs
in Both U.S. and Nigeria
ABUJA, NIGERIA --- The Export-Import Bank of
the United States (Ex-Im Bank) and the Nigerian
Ministry of Power (MOP) today (Oct. 19) signed
a Memorandum of Understanding (MOU) aimed at
securing up to $1.5 billion of U.S. exports of
goods and services directed at a ten-fold
increase in power output in Nigeria by 2020.
"$1.5 billion is just a start. We want to
deploy this financing as quickly as possible to
help meet President Goodluck Jonathan's goals
for growing the Nigerian economy by greatly
expanding the availability of power in the
country. The bank's board of directors will
certainly consider additional financing if
needed," said Fred P. Hochberg, Ex-Im Bank
chairman and president. "We are also interested
in financing U.S. exports in support of
Nigeria's other infrastructure needs, which we
understand may total over $220 billion between
2012 and 2016," he said.
Nigeria intends to increase power output from
the current four gigawatt level to 15-20
gigawatts by 2015, and 40 gigawatts by 2020.
The Bank and the MOP intend to establish a
framework to support U.S. exports to power
projects in Nigeria. They expect that the
projects would be structured on an Independent
Power Producer basis (IPP), where the sale of
power from the IPPs is supported by an adequate
level of sovereign or other strong credit
support.
Transactions under the power sector framework
would be approved by Ex-Im Bank on a
case-by-case basis, in compliance with Ex-Im's
credit, environmental and other policies and
procedures. The agreement was signed in Abuja,
the Nigerian capital, by Chairman Hochberg and
Minister of Power Bart Nnaji during the
Chairman's business development mission to the
country this week.
Nigeria is one of nine countries in the world
that Ex-Im Bank has identified as offering U.S.
companies the greatest opportunities for sales.
The other countries are South Africa, Turkey,
India, Indonesia, Vietnam, Brazil, Mexico, and
Colombia. All have growing economies and
significant infrastructure needs.
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