GEL Coal-to-Power Projects

In support of the Power Generation at the four (4) Coal Power Plants (CPPs) located Koton Karfe, Oguma, Omala and Lokoja/Ajaokuta Local Government Areas, GEL has already secured twelve (12) Coal exploration Licenses. The GEL’s Coal Mines are located along the Anambra Coal Belt, passing through Kogi and Enugu States, including the ones situated in Nasarawa State (bituminous coal) and in Benue State. Based on preliminary technoeconomic analysis carried out by GEL's technical partners (CEMC, GISL, etc.) and financial advisers BGL Private Equity Limited/BGL PLC  in the Project Information Memorandum, the total tune of investment is cca. US$25Billion, including the cost of logistics assuring the transportation of fuel (coal) to CPPs' sites), the construction of an Extra High Voltage (EHV) Transmission Network of 675-1,000KVA that assures the evacuation of the total generated electric energy capacity of 5,220MW. This total electric energy capacity is generated by:

 

 

The construction of two (2) ways railway lines shall be evaluated for these two longest distances:

 

 

The Federal Government of Nigeria (FGN) is actually carrying the reconstruction of the railways within these States. Besides, through The Gazelle Integrated Services Limited (GISL), the Federal Ministry of Transport (FMT) is ready to cooperate with GEL for the development and implementation of the required logistics for the transportation of coal mine sites to coal power plants sites under Private Public Partnership. FMT shall secure an equity participation of 15-30% of the total project a repayment guarantee of the loan provided by the financier of GEL (Investor). The railways will be commercially for public transport between the States and Local Governments Areas (LGAs). The Project Briefing Memorandum provides all the required information the contractors, the financial, technical and legal (transaction counsel) advisors, financiers and financiers, etc. Due to the volume and financial magnitude of the GEL Coal to Power Projects, the Federal and State Governments are involved in the development and implementation, providing security and financial (equity participation and guarantees) support. The Project total investment cca. US$25 billion.

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