Nigerian authorities say the MoU will be followed by a Power Purchase Agreement (PPA) that would authorise the investors to build a 1000 megawatts coal power generating plant.
Nigeria, richly endowed with vast natural resources, is exploring diverse means of power generation to solve country's gross power supply deficits. The country last year privatised its state-owned hydropower and gas-fired power plants, to leverage on the business expertise of private investors to boost the productiveness of the plants. Nigeria has also opened its arms to investors interested in exploring other forms of energy generation, with recent deals for a 50 megawatt solar station struck.
The coal deal with HTG-Pacific is seen as a means of utilising the abundant coal reserves which the Nigerian government says is capable of generating up to 30 percent of the country's energy needs environmental-friendly clean technology.
Nigeria's Vice President Namadi Sambo, who represented the President at the signing of the MoU with the Chinese consortium, said the plant would complement other public and private driven electricity projects as well as improve the power supply of the host state and the eastern region as a whole.