Akinwunmi Ambode, governor of Lagos state on Tuesday signed an agreement with investors to generate 3,000 megawatts of power over the course of seven years, BusinessDay reports.

Tagged the “Lagos State Embedded Power Programme,” the project has the objective to deliver 3,000MW incremental electric power to drive the burgeoning economy of Lagos at the cost of $3billion, subject to approval by the Nigerian Electricity Regulatory Commission (NERC). The first phase which will be commissioned before the end of the first quarter of 2018, is expected to deliver 520MW incremental power, while additional 1,070MW will be delivered by the fourth quarter of 2018. The balance of 1,410MW will be completed by 2022.

According to details of the agreement, Lagos state government will provide 3 months rolling bank guarantees to support the Power purchase Agreements (PPAs), which will be signed between the distribution companies and the embedded power providers (EPPs), to enhance bankability of the projects. In the agreement, Lagos state government will secure gas for the projects through provision guarantee to gas suppliers using its Ibile Oil & Gas company. The state will also carry out a comprehensive power audit exercise in Epe, Ikorodu, Ikeja, Badagry, Marina, Ibeju Lekki, Apapa and Ikoyi where the embedded project will be deployed.