Lagos - The U.S. Trade and Development Agency (USTDA) has signed a $480 million (about N7.92 billion) energy sector investment grants agreement with three Nigerian companies.
The benefiting companies are: Royal Power Integrated and General Services Ltd, Honeywell Group Ltd and the Benin Electricity Distribution Company Ltd..
USTDA Director, Leocadia Zak, said after signing the agreement with the representatives of the companies, that the agreement was aimed at boosting power supply in Nigeria under the U.S Power Africa initiative.
"The signing of this energy sector investment agreement with these companies is to make steady power supply a reality in Nigeria.
"The grants have the potential to catalyse over $840 million in investments in Nigeria’s energy sector.
"The U.S Government strongly believes that it can work with Nigeria for Nigeria to be able to meet her energy needs.
"We are in Nigeria to advance President Obama’s Power Africa initiative. The grants are to get these companies to get to work,’’ Zak said.
Dr Teddy Ngu, Honeywell Group’s Head of Corporate Development and Investment, who signed on behalf of his company, commended the U.S. Government’s effort at developing the Nigerian energy sector.
Ngu said that his company’s share of the grant would be used to assess the viability and scale of a proposed gas-fired power generation project at the Sagamu Independent Power Plant.
He said the project would supply electricity to a minimum of six food manufacturing and processing plants, as well as cold storage units in the area.
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