In June 2000, Nigeria signed a revised, two-part agreement with U.S-based Enron for an emergency 270-megawatt (MW) power supply project for Lagos State. The Lagos State government had originally contracted Enron in August 1999 to provide 90 MW. The project entails the installation of nine-barge- mounted (30 MW each) gas turbines. The barges will feed power into the national grid through a link with the nearby National Electric Power Authority's (NEPA) Egbin power plant. Generation from the barges was expected to begin in September 2001. The change in the ownership of the barge-mounted project is not expected to delay or hamper the implementation of the project. U.S.-based AES Corporation (AES) stated that it had acquired a majority interest in the emergency power supply project from Enron in February 2001. The Nigerian firm Y.F. Power, a division of the Yinka Folawiyo Group, is the minority partner with AES in the project whose total investment cost was put at $225 million. In June 2001, the Overseas Private Investment Corporation (OPIC) approved $200 million political risk insurance for the construction of the barge-mounted power plant. The insurance provides currency inconvertibility, expropriation and political violence coverage with respect to AES’s investment in AES Nigeria Barge Limited, which will own and operate the plant.

Rivers State is also developing its own plans for power generation. The Rivers State Commissioner for Power stated that 90 MW from three new gas turbine stations located in the districts of Eleme, Trans-Amadi and Omuku, would supplement current supplies from the NEPA. In March 2001, the government took delivery of components and began installation at the Trans-Amadi Industrial Layout near Port Harcourt. Trans-Amadi will provide 36 MW, which is going to feed Port Harcourt. Trans-Amadi, which has the potential to be expanded by an additional 50 MW, was commissioned in October 2002. A new gas pipeline is being laid to a 20-MW, gas turbine in Alode-Eleme. The facility, commissioned in 1996 by Nigeria's military ruler Sani Abacha, never functioned due to the lack of a fuel supply pipeline. The third plant, to be located at Omoku, is currently in the engineering stage. It is envisioned to be a 40-MW facility located in an area near Agip's oil producing operations.

The Nigerian government and Germany's Siemens signed an agreement in August 2000 for the construction of a 276-MW power plant in Port Harcourt. The natural gas- fired plant, which will be located in the complex that contains NEPA's Afam power plant, is expected to be completed in 15 to 18 months.

It was announced in April 2000 that Nigeria had signed an agreement with Italy's ENI/Agip (Agip) for construction of an IPP plant in Delta State. The 450-MW plant will be built in the town of Kwale and is expected to be operational by 2003-2004. Original plans called for the Nigerian National Petroleum Corporation (NNPC) to own a 51% stake in the gas-fired plant with Agip holding the remaining 49% share in the project. In October 2001, Phillips announced it was acquiring a 20% interest in the Kwale IPP project. Agip will retain a 20% interest and the NNPC will hold 60%. Nigeria signed a power purchase agreement (PPA) with the developers in February 2001. Under terms of the agreement, the Nigerian government appointed NNPC and the Finance Ministry as guarantors in the event that NEPA is unable to meet its payment obligations. Potential IPP developers, including the multinational oil firms operating in Nigeria, have been reluctant to venture into commercial electricity generation projects, partly due to concerns of fiscal issues with NEPA.

The government also has given its approval to the U.S.-oil major ExxonMobil to build and operate a 388-MW plant. The gas-fired plant would receive fuel from the nearby Oso field and would be located next to existing facilities at Bonny. The government and ExxonMobil have yet to sign a PPA for the project. The government announced, in December 2001, that it has offered to enter into a joint-venture (JV) partnership with ExxonMobil to ensure the success of the IPP project. The government offer is in response to ExxonMobil's request to guarantee payment for electricity generated from the facility.

The Swiss-based ABB Group has signed several agreements to help Nigeria's electricity sector. ABB was awarded a $40-million contract to construct a high voltage transmission line from the Shiroro hydroelectric facility to the capital of Abuja. ABB will also provide power to Abuja with the installation of a 30-MW gas turbine. The skid-mounted unit was provided as part of NEPA's Emergency Power Program. ABB's most significant project is the construction of a 450-MW IPP facility in Abuja. The combined-cycle facility will be constructed in three phases: phases 1 and 2 will each consist of the installation of 150-MW gas-fired turbines, and the final phase is a 150-MW steam turbine.

South Africa's Eskom, which signed a partnership agreement with NEPA to help improve Nigeria's electricity supply, has proposed the establishment of a coal-fired IPP plant which would utilize domestic coal reserves. The proposed Enugu power plant, with a planned capacity of 2,000 MW, would become Nigeria's largest generating facility. Eskom has considerable experience in coal-fired generation facilities, as coal is the primary fuel used to generate electricity in South Africa.