Honeywell Group and USTDA Sign Grant Agreement to Aid N31 Billion Sagamu Power Plant Project

  Honeywell Group and United States Trade Development Agency (USTDA) have signed a Grant Agreement for a feasibility study. This will be in order to facilitate the completion of its proposed N31 billion Sagamu Independent Power Plant Project. The grant, which was signed by USTDA Director, Leocadia Zak and Honeywell Group’s Head of Corporate Development and Investment, Dr. Teddy Ngu, is proposed to aid the phased power plant development intended to address the power needs and consequently stimulate the economic development of the Southwestern region of Nigeria, with emphasis on Sagamu, Abeokuta and the Lagos-Ibadan Expressway industrial clusters by supplying an amalgam of captive, embedded and on-grid power generation to provide ongoing and reliable power supply in those areas. The study will also look into the viability of providing embedded generation capacity to the Ibadan Distribution Company and power evacuation to the National Grid from the Sagamu IPP. Additionally, they will provide a platform to access international finance, world-class technology and service providers. Dr. Ngu stated in his remarks at the signing ceremony, that: “Honeywell commends the USTDA for the collaboration, which is coming on the heels of the successful implementation of a similar venture to jointly fund a study for the development of a multi-billion Dollar gas-based industrial complex. “This partnership on power is expected to provide substantial support to the development of the Sagamu IPP.” He unveiled that the project has potential to supply up to 140MW of power over the next five to seven years as the electricity demand increases in these areas; some of which Honeywell will use in its Foods & Agro-allied Industrial Complex which is being built on 63 hectares of land at the Flowergate Industrial Scheme in Sagamu. The Sagamu IPP project aligns with the Honeywell Group’s long term goals to generate 1,000MW of power through a mixed portfolio of on-grid power generation projects by 2020 as well as reaffirming the Group’s reputation for engaging in lucrative and mutually beneficial global partnerships.