New energy project to power two major states in Nigeria
Hydrochina partners for power plants in Africa
Hydrochina and World Aerospace Energy Inc announced they concluded an agreement in Beijing on Nov 8 for the construction of power plants in Nigeria.
They will cooperate with Fortune Electricity Co to build thermal gas electricity power facilities in two major states of the western African country in “a major development to increase electricity capacity”, according to the companies.
Chief Samuel Alex Oseiwusu, chairman and CEO of World Aerospace Energy, signed the $4 billion deal, as company President Paul Fu and Hydrochina Vice President Huang He attended the signing ceremony.
The transaction will increase the strong relationship between China and Nigeria as well as Africa as a whole, said Aerospace Energy executives.
The US- headquartered group company has also ordered 5,000 public buses to be sent to Nigeria from China.
These projects will help to increase employment and productivity, and improve the lives of local residents in both China and Nigeria, according to the company.
Oseiwusu said at the signing ceremony that he is grateful to his Chinese partner Hydrochina and the brokerage service Financial Vantage Ltd for their cooperation and support.
Fortune Electricity won the bid under a privatization program by the Nigerian government. Yet due to shortage of capital, it entered into a contract with Aerospace Energy and its Nigerian subsidiary, which took a 51 percent stake in the project for $6 billion.
Since 2005, Aerospace Energy has acquired an array of large projects in oil exploration and refining as well as gold mining. It supplies crude oil as payment to investors. Its crude oil output can surpass 6 million barrels a month.
In addition to the energy sector, the group company is involved in constructing highways linking western African countries and building lowincome housing projects in the region. It’s also active in telecommunications, infrastructure, hotels and international trade.
Local authorities offer support to the company’s projects and the federal government has ownership equity in them.
One of the largest oil sources in Africa, Nigeria has a population of about 170 million and needs leading-edge technologies and facilities, making the projects mutually beneficial, company executives said.