The State Grid Corp. of China (SGCC) and Nigerian partner Amperion Power Distribution Co. Ltd. won the bid for Geregu Power Generating Co. in Kogi State amid Nigeria trying to privatize its power sector.
The companies won the 414 MW Geregu power station for $128.3 million although the actual bid falls below the reserve price of $132 million. SGCC is a 10-year old company which began as a pilot operation by China’s State Council. The firm’s focus is on building and operating power grids – which is exactly what Nigeria needs; however, underbidding could pose a problem down the line if operating costs exceed the allotted amount.
While SGCC has attempted to get involved in other electricity ventures including Spain’s Red Electrica and American company AES Corp.’s wind division, the firm was unsuccessful. But SGCC was able to acquire seven high voltage electricity transmission assets in Brazil from Spaint’s Actividades de Construccion y Servicios and its affiliates. The Chinese power company has also touched down in emerging countries like India and the Philippines in addition to African nations like Ethiopia, Kenya, and Equatorial Guinea.
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