Oil & Energy
FG, Daewoo Seal Deal On 10,000MW Power Generation
The Federal Government, has signed a Memorandum of Understanding (MoU) with a South Korean company, Daewoo Engineering and Construction Company Ltd, to facilitate the production of 10,000 megawatts of electricity projects in the country.
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, Barr Nnaji, signed on behalf of the Federal Government, while the president and CEO of Daewoo E&C, Sang-Real Kim, signed on behalf of his company at the event which took place at the Power Ministry’s Conference Room in Abuja.
“Today is a very important day for the relationship we want to create for ourselves and Daewoo and the people of Korea”, Nnaji said during his remarks to flag-off the signing ceremony.
“The president was in South Korea and he gave us opportunity to reach out to your company, in that we agreed with your CEO that we would enter into Memorandum of Understanding on how to work together and how your company would work with us to improve power supply in Nigeria”.
Nnaji further said that the MoU would change the old system of contractors coming to the country simply to work and get paid and go. “We are now making the power sector attractive for investment by international investors”, he said to the visiting Daewoo team, adding that 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, the chairman of Daewoo E&C, Joseph Penawou, expressed delight on behalf of his entire team at entering into the MoU with the Federal Government.
The MoU is unique in many respects. While previous MoUs have guaranteed 10-15 per cent equity or other forms of investment in the reform-bound Nigerian power sector by the foreign party, Daewoo under the teams of its MoU will invest 20 per cent equity and in various engineering and construction services in the Nigerian power sector.
It is the fifth MoU to be signed by the Federal Government and various international investors since the launch of the Nigerian power reform road map.
The other MoUs were signed with US Exim Bank to provide $15 billion credit to the Nigerian power sector and with Siemens of Germany to assist in the provision of 10,000 megawatts of power generation infrastructure in the country and 10-15 per cent equity in new power generation stations. Other MoUs were signed with General Electric of the United States and Electrobras of Brazil under identical terms with the one signed with Siemens.
As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.
It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.
“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.
“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.
“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.
AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.
The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.
“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.
“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.
Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.
“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.
Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.
“This represents one of the most troubling cases of economic sabotage our nation has ever faced.
“We have made far-reaching recommendations to end this long-standing menace.
“There is need for strict enforcement of international crude oil measurement standards at all production and export points.
He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.
The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.
He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.
“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.
“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.