SkyPower Global and FAS Energy to build 3,000 MW of solar power in Nigeria at US$5 billion
SkyPower FAS Energy, a joint venture between SkyPower Global and FAS Energy, signs agreements with both the Federal Government of Nigeria and the Delta State Government for the development, construction and operation of 3,000 MW of solar PV projects at an estimated cost of US$5 billion.
ABUJA, Nigeria, May 7, 2014 /PRNewswire/ - SkyPower FAS Energy signed agreements with both the Federal Republic of Nigeria Government and the Delta State of Nigeria Government for the development of 3,000 megawatts (MW) of utility-scale solar photovoltaic (PV) projects within Nigeria and the Delta State of Nigeria to be built over the next five years.
These foundational agreements represent a monumental renewable energy milestone, which entails a multi-phase development and build schedule that will result in production of clean, sustainable, cost-effective energy to support the growing energy needs of Nigeria. SkyPower FAS Energy is committed to work closely with both governments for the planning, financing, and construction of 3,000 MW of utility-scale solar PV energy projects for the Nigerian power grid, which are expected to reach commercial operation in phases starting in 2015.
The agreements were signed at the World Economic Forum on Africa during a historic ceremony for a Foreign Investment Promotion and Protection Agreement (FIPA) between the Canadian and Nigerian governments. Representing the nations at the forum were the Honourable Olusegun Olutoyin Aganga, Minister of Trade and Investment for the Federal Republic of Nigeria and the Honourable Christian Paradis, Minister of International Development for Canada.
"This is truly a proud moment for SkyPower FAS Energy. Global partnerships such as these are key to bringing together extensive expertise from around the world," said proud Canadian Kerry Adler, President and Chief Executive Officer of SkyPower Global. "The signing of these landmark agreements demonstrates the shared vision of a partnership that will further stimulate the vibrant, fast-growing Nigerian economy and substantially impact the state and country's GDPs, resulting in increased employment and skills training. We applaud the leadership of the Delta State and Federal Nigerian governments for embracing this initiative and demonstrating their continued commitment to reduce carbon emissions and harness the proven power of solar PV."
"The signing of the Foreign Investment Promotion and Protection Agreement marks a significant milestone. It sends a clear signal to Canadian businesses that they can work in Nigeria with confidence, and to Nigerians that they can do the same in Canada," said the Honourable Christian Paradis, Minister of International Development for Canada. "Our government is looking to new approaches that deliver real results. The private sector has a crucial role to play in creating shared prosperity."
"The total capital requirement for these projects is an estimated US$5 billion, which will be financed through a combination of bank debt, development bank financing, and equity partners. Over the life of the projects, it is estimated that more than 30,000 jobs will be created in Nigeria," said Stephen Bordes, Chief Financial Officer of SkyPower Global.
"It is with great pride that we announce the signing of these agreements," commented Sabri Asfour, the General Manager of SkyPower FAS Energy. "This is a historic day, as the signing of these agreements and commencement of these groundbreaking projects in Nigeria clearly demonstrate Nigeria's commitment to clean, renewable energy. SkyPower FAS Energy's combined expertise in infrastructure development and construction will generate a large number of new jobs, support skills development, and increase prosperity in the regions of the country where these solar projects will be built."
"The Nigerian Government is pleased to partner with SkyPower FAS Energy and we look forward to creating more power and more jobs for the people of Nigeria," commented Permanent Secretary, Federal Ministry of Power, Ambassador (Doctor) Godknows Boladei Igali. "Foreign investment in Nigeria helps build the economy and strengthen international ties with a well-respected and viable partner such as SkyPower FAS Energy."
"Delta State is pleased to sign this agreement with the world's largest solar developer, SkyPower FAS Energy," said Doctor Emmanuel Eweta Uduaghan, Governor, Delta State of Nigeria. "It represents a continued effort to provide even more clean and renewable energy that can be sustained for decades to come. Delta State: Beyond oil into solar."
SkyPower FAS Energy believes in being strongly rooted in the local business community and plans to work closely with local Nigerian businesses and other local partners.
About SkyPower FAS Energy
In August 2013, SkyPower entered into a joint venture agreement with FAS Energy, a subsidiary of Fawaz Alhokair Group. SkyPower brings 11 years of experience developing utility-scale renewable projects around the world. FAS Energy brings an unprecedented amount of knowledge in real estate and construction from its extensive experience and presence in the MENA region. The joint venture's sole strategic focus is to develop and build Utility-Scale Solar PV parks across the MENA region.
About SkyPower (www.skypower.com)
SkyPower is the largest and one of the most successful developers and owners of solar energy projects in the world. SkyPower's international team of experienced professionals, power project specialists, and partners have built, assembled and acquired an extensive pipeline of over 25,000 megawatts worldwide. This development portfolio of large utility-scale solar PV projects makes SkyPower the world's largest solar development company.
With over 300 MW of awarded power purchase contracts, SkyPower has built strategic global partnerships with local developers, international leaders, financiers, suppliers, local communities, and indigenous peoples to produce over 219 million kilowatt hours of clean electricity to date.
Established in 2003, SkyPower has grown to over 135 employees, consultants, and advisors in 35 global offices, supporting development activities in more than 60 countries.
SkyPower sources, develops, finances, owns, and operates all of its solar energy projects, from the initial discovery stages through to commercial operation. SkyPower's finance team brings a long track record of raising funds for investment in utility-scale solar power generation, closing on over US$2.5 billion in renewable energy transactions since 2003. SkyPower has successfully raised US$250 million in project financings, and has arranged for corporate debt facilities totaling US$100 million. SkyPower has secured contracts representing over US$4 billion worth of energy sales to utilities around the world.
SkyPower is majority owned by CIM, a transformational urban real estate and infrastructure investment firm founded in 1994 with over US$14.7 billion in assets under management. (www.cimgroup.com)
About FAS Energy (www.fawazalhokair.com)
FAS Energy is committed to providing renewable energy solutions for the Middle East with a focus on developing alternative energy capacity. In affiliation with one of the leading construction companies in the Middle East, FAS Energy advises government associations on how to build industry-leading solar parks. With branches in the MENA region, namely Jordan, Egypt, and Morocco, as well as the Gulf Cooperation Council (GCC) countries and sister companies in Africa, FAS Energy's projects include approximately 2,400 MW of pipeline in development.
FAS Energy is a subsidiary of Fawaz Alhokair Group, one of the leading groups of companies in the Kingdom of Saudi Arabia focusing on retail and real estate business sectors. The Group expanded its business operations beyond the borders of the Kingdom and invested in retail and real estate sectors across the Middle East and North Africa (MENA) region, USA and Commonwealth of Independent States (CIS) region. Fawaz Alhokair Group had a turnover in excess of SAR6 billion (US$1.6 billion) for 2012-2013. With more than 12,000 employees, Fawaz Alhokair Group is the single largest owner and operator of shopping malls in the Kingdom of Saudi Arabia.
SOURCE SkyPower FAS Energy