Lagos, Nigeria -- (SBWIRE) -- 10/12/2011 -- Groot Property Group (Pty) Ltd is developing a rapid industrial ecosystem in Namibia with more than 60 different projects which includes Groot Town Center, 900 MW Gas-fired Power Plant, Wire and Cable Plant, Steel Plant, Engineering College, Medical Center, and more related industrial projects that would enable a creation of more than 500,000 direct and indirect better paying and sustainable job opportunities in Namibia within 3 years.
In Nigeria, Groot Property Group (Pty) Ltd has teamed up with some of Nigeria's prominent entrepreneurs and scholars based in the U.S. and Nigeria (consortium) to form Sparkle Energy Ltd, a company behind the development of a 4000 Gas-fired Power Plant ("Sparkle Power Plant"), which is to become the world's largest gas-fired power plant with a construction budget of US$10 billion designed to sufficiently power up to 5 million homes in Nigeria.
Nigeria has a population of about 155 million; it produces more than 22 billion of KWh and consumes more than 20 billion KWh, with a surplus of about 2 billion KWh of electricity. The Country doesn't export nor import electricity, hence it should have no urgent need of stable and reliable electricity supply. However, electricity in Nigeria is at most critical phase; especially in rural areas.
Regardless of the electricity surplus, Nigeria is consumed by frequent black-outs. Hence it has the world's largest market for individual electricity generators; more and more people own personal electricity generators to power their homes and businesses, especially in rural areas. And on top of that, they need diesel to fuel-power their generators, which subjects them to loud and disturbing noise generated by the personal electric generators, simply because the national electricity distribution is currently not reliable to sufficiently provide stable electricity for the country without annoying blackouts.
"Every well meaning Nigerian understands the importance of clean, safe and constant power supply. This is the core of the development of our Nation's economy because it addresses the question of industrialization and the current high rate of unemployment. And we are glad that under this oriented Groot Property Group's technical mentorship and planning management, this power project is going to help rid Nigeria this illness. This is a new dawn for Nigeria." Exclaims Julius T. Gbayange, CEO of Sparkle Energy Ltd.
The Consortium seeks to form a partnership with the Central Government of Nigeria for the development and realization of Sparkle Power Plant. "Obviously, Groot Property Group (Pty) Ltd will only hold 15% stake in Sparkle Energy Ltd, while the Nigerian consortium will hold 37% and 25% stake is reserved for the Nigerian Central Government, while the difference of 23% will be reserved for our future investors and partners. So, this is a development project by the Nigerians for the Nigerians and for the Government of Nigeria." Says Simon Kapenda PhD (Candidate), Chief Economist and VP Development Operations of Groot Property Group (Pty) Ltd.
Sparkle Energy Ltd also seeks to help repair and fix the current electricity infrastructure in Nigeria. The preliminary research finds that in Nigeria, there might be certain people who constantly sabotage purposely the country's electricity power lines in order to help increase the sale of personal electricity generators in the country. "There are currently laws in place against the sabotaging of power lines by anyone but these laws have little or are not entirely enforced. What we hope to do is to ask the Central Government to look into this senseless act of vandalism which is only pushing down the vast development of our country's economy." Adds Julius T. Gbayange.
"By 2016, Nigeria will become Africa's largest economy surpassing South Africa. However, Nigeria's industrial development lags far behind of South Africa, due to the country's infrastructure maintenance and management. And until Nigeria fixes some of these issues, South Africa will always be the leading and powerful economy in Africa due to its massive industrialization and well-maintained infrastructure." Adds Simon Kapenda.
The Central Government of Nigeria is expected to finance the start-up costs for the predevelopment of Sparkle Power Plant which is US$50 million. Then, with the guarantee of the Central Government of Nigeria and Offtake Agreements in place, the Company expects to raise the needed US$10 billion to fund the project through a combination of debt and equity through a network of Development Finance Institutions (DFI) with a mandate to fund projects in developing countries (examples of DFIs include Industrial Development Corporation of South Africa Limited, Development Bank of Southern Africa Limited, IFC and African Development Bank, as well as certain export credit agencies like the Export Credit Insurance Corporation of South Africa (Pty) Ltd (ECIC) and export facilitation banks like the Export-Import Bank of China and other commercial banks.
The preliminary development for Sparkle Power Plant is expected to be completed by mid-December 2011. Thereafter, the Company expects to select the EPCM Contractor for the engineering, procurement and construction Management of Sparkle Power Plant. The technical, engineering and construction is expected to start in mid 2012 and to make Sparkle Power Plant ready for commercial operation by the end of 2016.
About Groot Property Group (Pty) Ltd
Groot Property Group (Pty) Ltd is a Namibia-based premier rapid industrial development and foreign direct investment management company which focuses on implementing applied neuroeconomics and systems dynamic to efficiently explore, develop, and manage self-sustained ecosystems for the slow-developing and stagnant economies. Learn more about Groot Property Group (Pty) Ltd at http://www.grootgroup.com.
About Sparkle Energy Ltd
Sparkle Energy Ltd is a Nigeria-based company, which was solely established to be responsible for the planning and development of the Sparkle Power Plant, a 4000 MW Gas-fired Power Plant, budgeted at US$10 billion, poised to be the largest natural gas power plant in Africa to provide a cleaner, safer, reliable and more cost-effective electricity supply to nearly 5 million homes in Nigeria. Follow us Facebook at http://www.facebook.com/pages/Nigeria-Power-Plant/216712905049768 with live updates.
Julius T. Gbayange, CEO
Sparkle Energy Ltd
Simon Kapenda, VP Development Operations
Groot Property Group (Pty) Ltd
Web site: http://www.grootgroup.com