9 September 2004 - The AES Corporation today announced that its subsidiary completed the first non-recourse project finance transaction in Nigeria's power sector.
The $120 million financing was funded from a consortium of four commercial banks and three development finance institutions. The development financial institutions are FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.), African Export-Import Bank, and DEG (Deutsche Investitions und Entwicklungsgesellschaft mbH). The commercial banks are Africa Merchant Bank (France), a division of Belgolaise Bank, United Bank for Africa (Nigeria), Rand Merchant Bank (South Africa), and Diamond Bank (Nigeria).
The AES subsidiary operates nine barge-mounted gas turbines that produce 306 MW, approximately eight percent of Nigeria's power supply. The business has primarily served Lagos -- the industrial heart of Nigeria -- with much needed electricity since 2002. It is the first independent power project to be established in Nigeria with a power purchase agreement with the Nigerian Electric Power Authority (NEPA).
"This has been a truly collaborative effort among the Government of Nigeria, the Lagos State, NEPA, AES Nigeria and the financial institutions. Together, we are able to bring long-term benefits to the people of Nigeria," said John McLaren, AES Vice President for Europe and Africa Operations. "AES first invested in AES Nigeria Barge in 2001, and we are pleased to see the international and local financial community sharing in a common vision for a growing and commercially viable Nigeria."