Last updated at: (Beijing Time) Thursday, March 28, 2002
Chinese Companies to Build Two Power Plants in Nigeria
CMEC, China National Machinery and Equipment Import and Export Company, and Shandong Power Construction Company struck a 390-million-U.S.dollar deal with the Nigerian Ministry of Power andSteel to build two gas-fired power plants in the African country with a total capacity of 670 megawatts.
China's leading machinery and power plant exporter CMEC is to build two power plants in Nigeria. CMEC, China National Machinery and Equipment Import and Export Company, and Shandong Power Construction Company struck a 390-million-U.S.dollar deal with the Nigerian Ministry of Power and Steel to build two gas-fired power plants in the African country with a total capacity of 670 megawatts.
The deal also includes the construction of related transformer substations and transmission lines.
The Nigerian government will pay for Chinese companies to help manage the power plants after the construction is completed in two years' time.
Li Shuzhi, president of CMEC, said the plants would help ease the electricity shortage in Nigeria, and promote economic and trade co-operation between the two nations.
Li added that more energy cooperation could be done in the near future as the Nigerian government is eager to build more power plants to ease the energy thirst.
China-Nigeria Trade Relations and Economic and Technical Cooperation
China and Nigeria have signed a number of agreements on trade, economic and technical cooperation, science cooperation, as well as an agreement on protection of investment. In the 1980's, the two governments decided to set up a joint committee on economic and trade cooperation. The bilateral trade volume in 2000 reached US$ 856 million, of which US$ 549 million were China's exports, and US$ 307 million its imports. China's main exports to Nigeria are light-industrial, mechanical, and electrical products, and its imports from Nigeria are oil products, timber and cotton among others.
Up to now, China has set up over 30 solely owned companies or joint ventures in Nigeria. The main projects contracted or undertaken in the form of labor service by Chinese companies in Nigeria are the rehabilitation of Nigerian railway, the sportsmen hostel with the Abuja Sports Complex. China Geological Engineering Company, China Harbor Engineering Company (Group) and China Civil Engineering Construction Corporation are among the Chinese companies now operating in Nigeria.