The Federal Government has signed a Memorandum of Understanding (MoU) with South Korean Company, Daewoo Engineering and Construction Company Limited, to facilitate the production of 10,000MW of electricity in the country.
According to the agreement, Daewoo is 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.
The agreement was signed on behalf of the Federal Government by the Minister of Power, Prof. Bart Nnaji while the President and CEO of Daewoo E&C, Mr. Sang-Real Kim, signed on behalf of his company.
Speaking at the ceremony in Abuja yesterday, Nnaji noted that the event was a very important one for the relationship between Nigeria, Daewoo and the people of Korea.
“The president was in South Korea and he gave us opportunity to reach your company, in that we agreed with your CEO to sign a memorandum of understanding on how to work together and how your company would work with us to improve power supply in Nigeria. We are now making the power sector attractive for investment by international investors,” Nnaji said.
In his remarks, the Chairman of Daewoo, Chief Joseph Penawou expressed delight on behalf of his entire team at entering into the MoU with the federal government.
This is the fifth MoU to be signed between the Federal Government and various international investors since the launch of the Nigerian power reform roadmap.
While previous MoUs guaranteed 10 to 15 per cent equity or other forms of investment in the power sector by foreign parties, Daewoo under the terms of this MoU is investing 20 per cent equity.