Transnational Corporation of Nigeria Plc (Transcorp) and General Electric Company (GE) have signed a framework agreement to revamp the power and transportation sectors in the country.
The framework agreement, which was signed following a closed door meeting with GE’s global chairman, Jeffrey Immelt, and Transcorp Chairman, Tony Elumelu (CON), will enable GE and Transcorp to explore a partnership for the refurbishment and expansion of the Ughelli power plant in Delta State.
Transcorp Ughelli Power Plc (TUP), a subsidiary of Transcorp, a publicly quoted and diversified conglomerate with strategic investments in the hospitality, agribusiness and energy sectors, recently won the privatisation bid for 100% acquisition of the Ughelli power plant.
General Electric is a global infrastructure, finance and media company and has been active in Africa for several decades.
The wide ranging agreement allows for the provision of technical support and equity investment in the power plant. Other areas of collaboration include projects in the transport sector, specifically in the area of rail.
Commenting on the partnership agreement, Mr. Elumelu, said, “Heirs Holdings recently hosted the USAID Administrator Dr. Rajiv Shah in Lagos to discuss how the US government can partner with the Nigerian private sector to boost power generation in Nigeria. The agreement we have just signed with GE is a positive step toward the realization of this goal.
“As an Africapitalist, I believe in long term investments that create economic prosperity and social wealth. Our partnership with GE comes on the heels of last week's launch of the East Africa Exchange by Heirs Holdings and Berggruen Holdings, and further signifies our commitment to sustainable economic development for Africa, by Africans.” Mr. Elumelu added, “Power and transport are two major areas we know can turn economies and drive development. This is ultimately what we want to see happening in Nigeria.”
Mr. Immelt confirmed GE’s focus on Nigeria as a key market saying, “We chose to partner with Transcorp because it is an African company with an investment philosophy that will drive change here and in the rest of Africa.” He also noted that Nigeria is at a critical turning point in its development and its infrastructural needs are immediate and pressing.