Azura-Edo Independent Power Plant Environmental Impact ... - IFC

2.3 PROJECT BENEFITS
At a national level, the construction of the power plant will result in an
increase in grid based power generation capacity. At a local level, the Project
directly contributes to the development of Benin City area and the State as a
whole (through the employment opportunities it will directly create and
through the multiplier and agglomeration effects that will flow from the
increased availability of power within the region).
Apart from the evident contribution of electricity to the grid, the Azura-Edo
IPP Project endeavours to promote stronger relationships with numerous
parties involved in the Project. Inherent within Azura Power’s long-term
strategy is the collaboration with the Federal Government of Nigeria, the
Local State Government (relevant Edo State departments/ ministries) and all
relevant regulatory bodies. This collaboration is intended to assist in
delivering the Government’s power sector reform. In addition, the Edo State
Government will be a minority shareholder (up to 5 percent) in the Azura-Edo
IPP Project, and has agreed to provide the necessary land and road
infrastructure for project completion. The partnership with Edo State is
intended to provide a foundation for collaboration with local government and
other relevant parties in the future.
Azura is also working to develop close partnerships with leading suppliers,
contractors, service providers and advisors who have extensive knowledge
and experience in their respective industries, particularly in the development
and operation of power plants in West Africa. The selection of world-class
expertise enlisted for the Project will bring a wealth of skills and technology
not only to the Project but the wider energy sector within Edo State.
The Azura-Edo IPP has been nominated by the Nigerian Federal Ministry of
Finance for participation in a series of Partial Risk Guarantees (PRGs) initiated
by the WB to support the Nigerian electricity supply industry. In addition, the
Project has applied for political risk insurance (PRI) from the Multilateral
Investment Guarantee Association (MIGA). Both WB Programmes work to
instil greater certainty and hedge financial risks for potential investors.
Indeed, it is likely that these guarantees (and other aspects of the Project’s
financing structure) will not encourage external investors but will also raise
the investment profile of other, similar, projects in Nigeria.
2.4 ENVISAGED SUSTAINABILITY ASPECTS
The sustainability of the Project can be assessed and discussed in terms of the
environmental, economic and social aspects of the proposed development.
The EIA is a key component of the efforts designed to increase the
sustainability of the Project and includes an analysis of the potential Project
alternatives. Azura Power will ensure that the Project meets and/or exceeds
the requirements of the Nigerian FMEnv, the WB, and the IFC with regard to
minimising the environmental and social impact of the construction and
AZURA EDO IPP
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DRAFT EIA REPORT