ETA- Zuma Group West Africa Limited is shopping for $6billion to actualise its 1,200megawatts (Mw) of coal-to-power project. Dr Innocent Ezuma, the chairman of the firm, represented by the Executive Director, Corporate Relations, Ambassador Joseph Ayalogu made this known.
Dr Innocent Ezuma, the chairman of the firm, represented by the Executive Director, Corporate Relations, Ambassador Joseph Ayalogu made this known. He revealed that the company is in partnership with some credible firms from China.
He ruled out any possibility of securing money from the government, stressing that the funds would come largely from both local and international private investments.
“We will not say we are not shopping for fund. This is not chicken change. Everybody shops for big projects like this.
“But a lot of private money is coming and we are not expecting money from government. We would expect from financiers. We have signed an EPC contract. Our financial and contract partners will be some of the solid entities in China.
“They are easier to get what you want to do: money and resources. They have a lot of it. Secondly they are not too worrisome or skirmish about whether your coal is clean or not.”
According to him, they have invested over $500million so far in projects even though they are still at their development stages. He criticized the western world’s campaign against coal-to-power to frustrate Nigeria’s efforts at generating power from coal even as the same countries have yet to decommission their own coal power plants.
He, however, revealed that the company has the permit, licence and agreements for the power project in place, including approval from the Transmission Company of Nigeria (TCN).
He also noted that what is delaying the project is tariff, because the power purchase agreement with the Nigerian Electricity Regulatory Commission (NERC) did capture the issue of auxiliary infrastructure. Adding that he agreed to review the auxiliary infrastructure in the Multi Year Tariff Order (MYTO).
“When developing the MYTO, the Nigerian Electricity Regulatory Commission (NERC) did not take into consideration provision for some auxiliary infrastructure like transmission line, the roads for some of these projects.
“They were not part of what was develop in the present MYTO because we have agreed with NERC the tariff for the power plants. So, what is holding us back now are those auxiliary infrastructure which we are trying to agree on a tariff for them and late last year we had a meeting with the Ministry of Power and he is trying to wade into these issues to see how the auxiliary infrastructure can be sorted out.”