Vanguard (Lagos)
21 April 2008
FOLLOWING the recent approval of Accelerated Expansion of Electricity Infrastructure by the Federal Executive Council, the Africa Finance Corporation (AFC) has launched the bankable due diligence for up to $2.8 billion private sector managed and financed Special Purpose Vehicle (SPV) structured arrangement to help Nigeria double its current power supply to 6000mw in 18 months.
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With the statement both by Lukeman, former Nigeria's representative in OPEC and by the Managing Director of Nigeria Electricity Liability Management Company that Nigeria already currently has capacity for over 6000MW save for gas supply due to vandalized pipelines raises questions and doubts as to why the government is engaging UK,s PB Power Limited and US McKinsey and Company for bankable due diligence to the tune of $2.8b especially as there is no explanation whatsoever by the government as to details of the on-going power projects. It is mind buggling to think of the 'Technical engineering and robust evaluation' that would be involved in the repairs of vandalized pipelines to warrant the sum of #2.8b. With nothing publicly spelt out as to the details of what this these new contractors are to be involved in for $2.8b, a very thick cloud of corruption hangs over the this move by the government. The world is watching!