The China Energy Engineering Group Corp. won a contract to build a 400 MW combined-cycle plant in Nigeria. The plant, which will be located in Sagamu, Ogun State, will cost an estimated $550 million.
Under the terms of the agreement, the Chinese company will be responsible for the development, acquisition of materials and construction of the Sagamu plant.
"China Energy is also mobilizing the project financially with the support of Chinese international banks," said Samuel Marcus, Executive Director of Sagamu Independent Power Plant (SIPP) which is in charge of implementing the project.
SIPP hopes that the financial mobilization will be closed by Q3, so that the plant will enter into service by 2020. It is expected that the plant will be developed in two phases, the first phase with a capacity of 250 MW being installed and the second phase will bring the facility up to its planned capacity of 400 MW.