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Lafarge, IFC and Wärtsilä Partner to Increase Electricity Supply in Nigeria


For IFC

Ejura Audu

Email: Eaudu@ifc.org

Phone: +234 803 494 6244


Abuja, Nigeria. September 17, 2014 –, IFC, Lafarge, and Wärtsilä today announced a new agreement to more than triple the output of Nigeria’s Ewekoro power plant, improving access to electricity for about 1.4 million households in the country and supporting economic growth. IFC is a member of the World Bank Group; Lafarge is a world leader in building materials: and Wärtsilä is a leading global supplier of flexible power plants.

The agreement calls for Lafarge Cement to transform WAPCO’s existing 90 megawatt dual-fuel, captive power plant into a 310 megawatt gas-fired and highly-efficient internal combustion engine power plant. IFC, through IFC InfraVentures, its Global Infrastructure Project Development Fund, will provide financial and commercial structuring. Lafarge will manage the project and Wärtsilä will build and manage the power plant.

The project involves freeing some of the plant’s existing captive capacity and making it available to the national grid. It will also construct a new 220 MW engine power plant that will be connected to the national grid through a power purchase agreement with the National Bulk Energy Trading Company.

Guillaume Roux, Group CEO and Managing Director of Lafarge Africa Plc, said “Lafarge is demonstrating its value adding leadership and strong commitment to the Federal Government of Nigeria’s transformational agenda to increase power generation. We are complementing government’s efforts to boost national development through improved industrialization and economic growth. With the support of IFC and Wärtsilä, our long term partners, this project will increase the level of power generation in Nigeria”.

Wärtsilä will provide our expertise and experience in the development and implementation of high efficiency and flexible internal combustion engine-based power generation projects around the world”, said Ade Audifferen, Managing Director of Wärtsilä in Nigeria.  “The Wärtsilä EPC and operation and maintenance package combined with our strong presence in Nigeria will mitigate the operational risks over the life of the project. With the support of our development partners Lafarge and IFC, we can provide cost-efficient and reliable power supply that will increase economic productivity in Nigeria”, said Audifferen.

Richard Arkutu, IFC Manager for the Africa Special Initiative for Infrastructure, said “In partnership with Lafarge and Wärtsilä, IFC is eager support the development of this power project. This new project demonstrates IFC’s support for the Federal Government of Nigeria under the World Bank Group’s Energy Business Plan for Nigeria. The project will open a new avenue for Nigeria’s power generation by leveraging existing captive plants owned by large industrial clients, allowing for fast-track expansion for new capacity that can supply the national grid.” The World Bank Group’s Nigeria Energy Business Plan is a comprehensive approach by IFC, The World Bank, and MIGA to support each segment of the gas to power value chain.

The existing 90 MW Ewekoro dual fuel engine power plant was commissioned in 2011 and built and operated by Wärtsiläto supply power to Lafarge’s WAPCO operations. When the project is complete, the power plant will have capacity to supply approximately 260 MW to the national grid.

About Lafarge Africa Plc
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company, is a subsidiary of France-based Lafarge group, the world leader in building materials. Listed on the Nigerian Stock Exchange with a presence in Africa’s two largest economies—Nigeria and South Africa-- Lafarge Africa actively participates in the urbanization and economic growth of Africa.

Combining its operations in Nigeria with South Africa, Lafarge Africa has a current installed cement capacity of 12Mt, which is expected to grow to 17.5Mt by 2017. This is in addition to strong market leading positions in aggregates, ready mix concrete and fly ash. Lafarge Africa leverages its innovative expertise to provide valued added products and services solutions in the building and construction industry in Sub-Saharan Africa. Additional information is available on the web site at www.lafarge.com.ng

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org.

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Wärtsilä Power Plants in brief
Wärtsilä Power Plants is a leading global supplier of flexible baseload power plants of up to 600 MW operating on various gas and liquid fuels. Wärtsilä’s portfolio includes unique solutions for peaking, reserve and load-following power generation, as well as for balancing intermittent power production. Wärtsilä Power Plants also provides LNG terminals and distribution systems. As of 2014, Wärtsilä has 56 GW of installed power plant capacity in 169 countries around the world.

For Wärtsilä

Ade Audifferen

Email: ade.audifferen@wartsila.com

Phone: +234 803 402 2919

For Lafarge:

Ademola Ojolowo

Email: ademola.ojolowo@lafarge.com

Phone: +234 808 313 4453