26 SEPTEMBER 2007 - MOU with Geometric Power Limited

Africa Finance Corporation (“AFC”), the private-sector led investment bank and development finance institution created to help mobilise and channel capital towards driving Africa’s economic development, is pleased to announce that is has signed a  memorandum of understanding with Geometric Power Limited (“GPL”) for the development of the Aba Independent Power Project (“Aba IPP”) in Aba, Nigeria.  

The Aba IPP is an independent power plant project comprised of a generation plant and associated infrastructure operated by Geometric Power Aba Limited (“GPAL”) and Aba Power Limited Electric (“APL Electric”) in Aba, an industrial city with a population of approximately 2 million.   

GPAL has a license to operate a 140 MW power plant with approximately 100 km of high-voltage distribution lines and four brand new substations, and an electricity distribution company.

APL Electric is a wholly owned subsidiary of Aba Power Limited (APL) which has a distribution license for Aba and a long term concession for the refurbished 3 existing substations, the property of Power Holding Corporation of Nigeria Plc (PHCN), and the electricity distribution network in Aba.

AFC has been appointed to advise on, structure and arrange a limited recourse project financing of the Aba IPP in collaboration with other international financial partners.

Professor Barth Nnaji , Chairman and CEO of Geometric Power Limited, said:
“The Aba Independent Power Project is very important to the successful economic development of Aba and the surrounding region.  The AFC’s involvement and expertise will help the financing of the project in a manner which both ensures Aba IPP’s  success and rewards its backers on a proper commercial basis.”      

Austine Ometoruwa, President and CEO of AFC, said:
“We are delighted to be advising Geometric Power Limited on the financing of the  Aba Independent Power Project. This project is a good example of our how we can bring our range of origination, structuring, syndication, management and advisory skills to catalyze private sector participation in financing major infrastructure projects in Africa, helping to power African economic growth.”