The Federal Ministry of Finance has provided counter guarantees for a power purchase agreement (PPA) to Kano State for the purchase of electricity to be generated by the 540 megawatt (MW) Qua Iboe Power Plant (QIPP) in Akwa Ibom State. The Minister of Finance, Mrs. Zainab Ahmed, who conveyed government’s approval, said “We are looking at this as a pilot project as this will help mitigate federal government’s plan.”
According to a statement by her media aide, Paul Ella Abechi, the ability to provide a counter guarantee would go a long way to reduce the burden on the federal government. While soliciting the federal government’s guarantee, the Kano State Governor, Dr. Abdullahi Umar Ganduje had in a proposal to the minister dated January 7, 2019 highlighted the understanding reached with other partners in the project.
According him, QIPP has already secured the firm commitment of equity funding of $350 million from Globeleq and project finance of $850 million from the International Finance Corporation (IFC), OPiC and African Development Bank (AfDB) for the construction of a thermal power plant located in Qua Iboe in Akwa Ibom State with a capacity of 540MW.