The Japanese government has offered $800 million credit line to Nigeria that will be used to rehabilitate and extend the lifespan of the Jebba power plant as part of its support for Nigeria’s power sector.
To this end, the federal government and the government of Japan are expected to firm up all relevant agreements that will ease the way for the 578.4 megawatts (MW) installed capacity Jebba hydro power plant to access the loan.
This comes as one of the plant’s turbines with a generation capacity of 96.4MW which was rehabilitated by Japan after a fire incident, was commissioned yesterday to increase the plants available generation capacity to 482MW.
Speaking during the handing over of the overhauled unit of six generating turbines plant to Nigeria, the deputy head of mission at the Japan Embassy, Mr Masaya Otsuka, said the $800 million credit line will be used to rehabilitate and extend the lifespan of four extra units of the plant.
Otsuka noted that if approved under a government-to-government agreement, the loan will be used to refurbish the four generating turbines which have not undergone any form of mandatory overhaul since they were commissioned in 1983.
The loan he explained is under the Tokyo International Conference on African Development (TICAD) framework, and will include 1.4 per cent concessionary rate for 40 years.
He said that the repair work on the turbine which was commissioned by the minister of Power, Works and Housing, Mr Babatunde Fashola, was undertaken with N5.2 billion after it was burnt down in April 2009.
Otsuka explained that negotiations for the new $800 million rehabilitation loan have progressed very well and should be concluded in a matter of time for Jebba to access it and mobilise for the repairs.
“The ambitious projects on repairing four generators will provide good megawatts for the people of Nigeria. I believe it will help Nigeria become more attractive place for investors as well as residents,” Otsuka said.