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The Cost of Financing Power Projects in Nigeria

Nigeria is in desperate need of constant electricity supply. Other African countries are facing same challenge of epileptic or inaccessible power, but only few among the 54 countries are responding to the huge setback with regional cooperation—the proven collaborative action towards increasing the capacity of generated electricity. Hydropower projects have featured prominently on the list of available options, which include services from Independent Power Providers (IPP) such as Divine Multiventures Limted (DMV).

Findings show the Nigerian government and multinational corporations are increasingly turning to private sector investors to help sustain and boost electricity generation projects within the country. The processes start from the early planning stage and continues through to construction and operations. DMV has partnered with frontline multinationals in the energy and power sector—such as Mantrac (CAT), Aggreko Gas Power Generation Limited, Nestle etc—to invest and manager private sector capital for the development of Nigerian economy. To achieve this purpose, DMV relies on its team of experienced engineers and stakeholders with financial, legal, technical and structuring expertise, including governments of some Africa countries, to close the energy infrastructure gap and spearhead growth.

Nigerians currently living without constant electricity are found in both rural and urban areas. Their isolation from the national electricity power grid is one of the greatest challenges to economic development. Additionally, disruptions in power distribution has huge financial implications for companies and individuals whose survival depends on constant power supply. However, the huge land distances from major electricity power distribution companies (Discos) sometimes make it too expensive to build the initial transmission infrastructure to connect small communities to the electricity grid. Moreover, large-scale power projects are typically financed on a limited-recourse project finance basis. This implies that private investors are required to provide around 30% of the capital required as equity while the balance comes from international and local financial institutions (development finance institutions, commercial banks etc). DMV aims at bridging the gap between electricity used by individuals and companies, ranging from 20kva to Megawatt of non-stop power – including transformers.

Contact DMV today for a quotation on affordable and reliable electricity. We have a solid team of professional O&M engineers with quality experience in Installation of Mechanical and Electrical Distribution Components, Commissioning, Decommissioning, Manning (Provision of Technical Manpower), Repairs and Maintenance of industrial Diesel and Gas Plants. We also overhaul and weld Gas and Diesel Pipes as well as fabricate equipment used in the Oil and Gas, Manufacturing, Construction, Real Estate, Banking / Financial Sectors.

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