VENTURES AFRICA – General Electric (GE) and Transnational Corporation of Nigeria (Transcorp) have signed a framework agreement to collaborate in developing the power and transport infrastructures in Nigeria.
The agreement primarily sees the two companies open an avenue for discussion with regard to partnering in the development of the Transcorp owned Ughelli power plant, in Nigeria’s Delta State, pursuant to broader plans for the advancing of Nigeria’s power infrastructure.
“We chose to partner with Transcorp because it is an African company with an investment philosophy that will drive change here and in the rest of Africa,” disclosed Jeffrey Immelt, global chairman of GE, adding that Nigeria a has immediate infrastructural needs given its advanced developmental position.
This sentiment was reiterated by Tony O. Elumelu, chairman of Transcorp, who noted in particular the importance of developing the power infrastructure in the country.
“Power and transport are two major areas we know can turn economies and drive development. This is ultimately what we want to see happening in Nigeria,” Elumemu said.
The agreement is in line with GE’s broad plans to support development in the country, having concluded an arrangement with the Nigerian federal government in March of last year under which GE will play an active role in putting in place the necessary infrastructure and expertise to ramp up the country’s power output by 10,000MW over the next ten years.
Transcorp has also been afforded significant confidence by the government with respect to improving the country’s power supply, having been awarded a contract for the privatisation of the Ughelli power plant winning the 100 percent acquisition bid.