Lagos — 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.

Accordingly, Minister of State for Energy (Power), Mrs. Fatima Balaraba Ibrahim, has conveyed the decision of the Federal Executive Council to all key Ministers and Government leadership, CEOs of the PHCN/NDPHC generating, transmission and distribution companies for onward communication to all key local and foreign firms undertaking projects in the power sector.

AFC's President and Chief Executive Officer, Mr Austine O. Ometoruwa, who is the co-ordinator of the due diligence assessment, said of the project: "The AFC is humbly honoured and resolutely committed to help Nigeria fix this endless power crisis that has trapped Nigeria in increasing poverty and damaged economic growth and social progress despite current record oil prices.

We understand the enormity of our challenges but remain confident we can all succeed given the leadership clarity and determination of His Excellency, President Yar'Adua, to make history here and with the force of God's strength behind us."

The spectrum of the intensive bankable due diligence to be completed in six weeks covers:

•Technical engineering and robust evaluation.

This includes designing a bankable economic model to certify and optimise capital expenditure required to achieve physical and financial completion of all projects in generation, transmission and distribution to deliver the immediate 6000mw minimum target.

The World's leading power engineering group-UK's PB Power Limited-will lead a team of other international power specialist firms working with the AFC Power Engineering and Project Development Groups.

•Management due diligence entails designing and delivering the international management capacity for timely and cost efficient project development, execution and completion, to operate and manage and achieve a bankable power sector in Nigeria. The World's leading management strategy firm, Mckinsey and Company of the USA, will lead this engagement with AFC.

•Financial due diligence to design and deliver a bankable financial model and structure the optimal financing and business plan, and a bankable commercial term sheet for the immediate interim financing and the takeout long term financing that will be subject to a competitive bid by local and international banks.

The World's leading power project financing banks (Citigroup, HSBC, Morgan Stanley, Standard) with the largest local banks, along with specialist foreign financial modelling firms, are working with AFC here.

•Legal due diligence to evaluate and optimise all project contractual agreements, design commercial term sheets and SPV structure and all other bankable contractual agreements required to make the arrangement viable and successful. A group of leading local and international legal firms working with the AFC World class project structuring and financing legal specialist team.