The federal government has signed another Memorandum of Understanding (MoU) with a South Korean company, Daewoo Engineering and Construction Company Ltd, to facilitate the production of 10,000mw of electricity projects in the country.

Daewoo has undertaken to provide 20 per cent equity in the various projects identified under the scheme, in addition to providing expert advice and guidance on electrical production and construction of power projects to companies wishing to do business in Nigeria under the agreement.

Minister of Power, Professor Bart Nnaji who signed on behalf of the federal government, said that the MoU would change the old system of contractors coming to the country simply to work and get paid, rather, the investors will join in the expansion of the power sector.

Today is a very important day for the relationship we want to create between ourselves and Daewoo, and the people of Korea,” Prof Nnaji said in remarks to flag off the signing ceremony.

“The President was in South Korea and he gave us an opportunity to reach your company and we agreed with your CEO that we would enter into a memorandum of understanding on how to work together and how your company would work with us to improve power supply in Nigeria,” he added.

“We are now making the power sector attractive for investment by international investors,” he said to the visiting Daewoo team members, adding that it was now hoped that they would not only execute contracts but also invest in the power sector under the MoU.

President and Chief Executive Officer Daewoo E and C, Mr. Sang-Real Kim, signed on behalf of his company.

This is the fifth MoU to be signed by the Nigerian government and various international investors since the launch of the Nigerian Power Reform Road Map on August 26, 2012.

The FG had previously signed an MoU with US Exim Bank to provide a $15billion credit to the Nigerian power sector and with Siemens of Germany to assist in the provision of 10,000MW of power generation infrastructure in the country and 10-15 per cent equity in new power generation stations

MoUs were also signed General Electric of the United States and Electrobras of Brazil under identical terms with the one signed with Siemens.