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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