IFC, Lafarge and Wärtsilä sign agreement for new power plant in Nigeria

The International Finance Corporation has signed a financing agreement with Lafarge and Wärtsilä for the construction of a new power plant in Ogun State, according to reports.

The power plant will be integrated with Lafarge Africa’s existing 90 MW plant, and reports indicate that some 220 MW will be made available to the national grid. Currently, some 50 MW of power from Lafarge’s power plant is utilised for cement production, with the remainder being returned to the grid, meaning that once complete the total power provision from the facility to the national grid would be 260 MW. This is sufficient to provide electricity to about 1.4 million homes.

The plant will require an investment of some US$400 million. Wärtsilä will build and manage the plant, while Lafarge Africa will be responsible for the project. IFC will provide financial support and advisory services.

Power supply is a big obstacle to development in Nigeria, with several cement companies reporting in their financial results that power shortages had impacted production and profitability.

Edited from various sources by Katherine Guenioui

Sources:

• Energy Business Review
• Nigerian Tribune
• Ventures Africa
• Leadership

Read the article online at: https://www.worldcement.com/africa-middle-east/19092014/ifc-lafarge-wartsila-sign-agreement-for-new-power-plant-nigeria-519/