Home | Subscribe


Saudi-Canadian solar JV signs $5bn photovoltaic project in Nigeria

By GAR staff on 11.05.2014.

SkyPower FAS Energy, a joint venture between Toronto’s SkyPower Global and FAS Energy of Saudi’s Fawaz Alhokair Group, has signed agreements with Nigeria’s federal and Delta State Government departments to develop a 3,000MW solar project worth an estimated $5bn.

The project entails a multi-phase build schedule over the next five years, with SkyPower FAS Energy expected to deliver the first phase of the project and commence commercial operations in 2015, as they gradually transition to the operation of the utility-scale facilities.

“Financed through bank and equity partners, an estimated 30,000 jobs will be created in Nigeria over the life of these projects.”

“This is truly a proud moment. Partnerships such as these bring extensive expertise together from around the world,” said Kerry Adler, President and CEO 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 GDP, resulting in increased employment and skills training.

“We applaud the leadership of the Delta State and federal Nigerian governments for their commitment to reducing carbon emissions and harnessing the proven power of solar PV.”

The agreements were signed at the World Economic Forum on Africa alongside a Foreign Investment Promotion and Protection Agreement (FIPA) signed between Olusegun Aganga, Nigeria’s trade minister and Christian Paradis, Canada’s international development minister.

Noting that the firm believes in being strongly rooted in the local community, Sabri Asfour, GM of SkyPower FAS Energy, added: “Our expertise in infrastructure development will support significant skills development and increase prosperity in the regions where these projects will be built.”

Stephen Bordes, CFO for SkyPower Global, detailed: “The total capital requirement for these projects is an estimated $5bn, financed through bank debt and equity partners, and over the life of these projects, it is estimated that more than 30,000 jobs will be created in Nigeria.”

Ambaassador and Permanent Secretary of the Federal Ministry of Power, Dr Godknows Boladei Igali, further noted that “foreign investment in Nigeria helps build the economy and strengthen international ties with a well-respected and viable partner such as SkyPower FAS Energy.”

Governor Dr Emmanuel Eweta Uduaghan, meanwhile commented: “We are pleased to sign this agreement with one of the largest solar firms. It represents a continued effort to provide energy that can be sustained for decades to come in the state, beyond oil and into solar.”

Since 2003, SkyPower has closed on over $2.5bn in renewable energy transactions and produced over 219 million kilowatt hours of clean electricity. The company has over 135 employees in 35 global offices, activities in more than 60 countries and a further 25,000MW in its pipeline worldwide,.

FAS Energy and its sister companies in Africa have approximately 2,400MW in their development pipeline, while the Fawaz Alhokair Group boasts a turnover in excess of $1.6bn in 2012-2013, and with 12,000 employees is also single largest owner-operator of shopping malls in Saudi Arabia.