The State Government has signed a Memorandum of Understanding with Zolts Energy Limited for the construction of a 40 Megawatts Embedded Power Generating Plant in Ogbaru.
The MoU with a total investment worth US$47.25 million which aims to generate and sell electricity to the Enugu Electricity Distribution Company, EEDC, will see the investor put in $45 million as its equity contribution.
The State Government on its part, will bring the sum of $2.2 million and also grant to the SPV, Certificate of Occupancy for the 3 hectares of land to be used for the project. Signing the MoU, Governor Obiano said Power being a key enabler in his administration’s development blueprint, is getting maximum attention from his government, adding that the MoU brings to four, the total number of Power companies that it has so far signed on.
He noted that the siting of the proposed Power Plant near the Onitsha Industrial Layout is strategic to ensure that the industries in the Harbour get the required power to operate at a maximum capacity.
The Governor while noting that the Project also holds great employment and IGR prospects for the State, urged the investor to immediately hit the ground running, assuring that the State is committed to meeting its own side of the deal. The Chairman of ANSIPPA, Chief Joe-Billy Ekwunife who said the MoU was structured in line with international best practices in investment, revealed that an agreement has been reached with the investor that work will commence on the project site within 6 months of the issuance of the land title, failure of which it will be revoked.
Earlier, the Chairman of the State’s Power Committee, Mr Chike Okonkwo acknowledged that the 18 months designated for the execution of the project will ensure that it is realistic, noting that they are committed through constant monitoring of the project, to ensure that it is properly executed.
On his part, the Chairman of the Investing Company, Chief Dominic Ekesi hailed Governor Obiano’s vision to engage the Private Sector to support government’s initiative for adequate Power supply and delivery, adding that they have an understanding with the EEDC for preference to be given to the State in the Distribution of the Electricity to be generated by the plant.
In a vote of thanks, the Commissioner for Economic Planning, Budget and Development Partners, Mr Mark Okoye commended the Governor for his innovation and creativity that has translated in the positive overhaul of the State’s investment processes and the investor for finding the state a credible partner in the venture. Formal signing of the MoU documents formed the highpoint of the event.