Nigerian government suspends sale of Egbin power plant

The Nigerian government has announced the suspension of the sale of Egbin power plant, which it had planned to transfer to the Korean Electric Power Corporation (KEPCO) at the end of this year. KEPCO had been awarded a 51 per cent stake in Nigeria’s largest power plant for $280m four years ago.

Barth Nnaji, Nigeria’s minister of power, said that the suspension of the sale was necessary because: “The agreement was made a long time ago and its terms could no longer hold. The renegotiation of the agreement means that the transfer of the asset to KEPCO has been postponed. The transfer of the plant can not possibly happen in December 2011.”

Nnaji promised that the Nigerian government would provide $10m to repair unit six of the plant, and that the country would achieve a power capacity of 5000 MW by the end of 2011.

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