Foreign firms from China and the United States (U.S) have pledged to invest over $14 billion in the second phase of the National Integrated Power Project (NIPP), The Nation reports. The second phase projects include construction of large hydropower plants such as Mambilla, Gurara II and 10 small hydropower plants, transmission and distribution facilities and equipment.
A source said the State Grid of China/CET/Westron, had committed to invest over $8 billion in first tranche and additional $4 billion later (on equity/loan participation) in Transmission Company of Nigeria through Niger Delta Power Holding Company (NDPHC) Limited with a minimum of $600 million contribution by NDPHC which oversees the NIPP projects on behalf of the three tiers of the government.
The source also noted that Africa Group from U.S. committed to invest over $2 billion in power projects in Nigeria using NDPHC as a fulcrum, adding that there are some other interested investors committed to financing small transmission projects in the range of $50 million and $200 million, citing a firm called Ak-Ay.
However, he said following some challenges confronting the project and the over N64 billion owed the NDPHC by the Federal Government, the foreign investments may be stalled. He explained that because of the challenges confronting the NIPP projects, including litigations, bidders have actually started to withdraw their bid bonds.