Federal Government yesterday signed a memorandum of understanding with a South Korean Company, Daewoo Engineering and Construction Company Ltd, to facilitate the production of 10,000 megawatts of electricity projects in Nigeria.
The company has undertaken to provide 20 per cent equity in the various projects identified under the scheme, in addition to providing expert advice and guidance on electrical, production and construction of power projects to companies wishing to do business in Nigeria under the agreement.
Minister of Power Prof. Barth Nnaji signed on behalf of the government, while the President and CEO of Daewoo E&C, Mr. Sang-Real Kim signed on behalf of his company at the event which took place at the power ministry in Abuja.
"Today is a very important day for the relationship we want to create, ourselves and Daewoo and the people of Korea," Nnaji said during his remarks to flag off the signing ceremony.
Nnaji further said that the MOU would change the old system of contractors coming to the country simply to work and get paid and then go. He said it was now hoped that they will not only execute contracts but will also invest in the power sector under the MOU.
In his remarks, chairman of Daewoo, Chief Joseph Penawou, expressed delight on behalf of his team at entering into the MOU with the Federal Government.
The MoU stands out from previous ones which guaranteed 10-15 per cent equity or other forms of investment by the foreign party, but Daewoo under the terms of its MOU will invest 20 per cent equity and in various engineering and construction services in the Nigerian powern sector.