MON, DECEMBER 31 2018-theG&BJournal- Out with the old, in with the new: As the clock strikes midnight on New Year’s Eve, Edu Okeke replaces David Ladipo as the new Managing Director of Azura Power West Africa Ltd.
Lagos, Nigeria, 30 December 2018: At midnight tomorrow, Dr David Ladipo will step down as the Managing Director of Azura Power West Africa Ltd and be replaced by Mr. Edu Okeke (pictured above).
As co-founder and MD of Azura, Dr Ladipo spent more than eight years at the helm of the company, during which time the company developed, built and commissioned the 461 MW Azura-Edo IPP, Nigeria’s first largescale, privately-financed, independent power plant. As the company transitions into 2019, he now passes the baton to his erstwhile deputy, Mr. Edu Okeke.
Mr Okeke joined Azura in 2014 as its Chief Operating Officer before becoming Deputy Managing Director in 2016. Prior to joining Azura, Mr Okeke had already charted a stellar career path through a succession of bluechip companies. This career began 25 years ago, when he joined Guiness Nigeria PLC as a management trainee based in Lagos. From there he moved to Schlumberger Oilfield Services where he steadily moved up the ranks from a Junior Field Engineer to overseas postings as a Senior Field Services Manager in Vietnam and Pakistan.
In 2004, he joined Lafarge PLC as a Business Development Manager where he was posted to South Africa, before returning to Lagos and attaining promotion to the post of Commercial Director. In 2008, he moved to General Electric where he spent three years as GE’s West Africa Region Manager before being posted to France, in 2011, as a Commercial Leader. One year later, GE brought him back to Africa to head up their entire Sub-Saharan Power Generation Sales Division. And it was from this role that he was eventually poached by Azura.
Mr Okeke holds a BSc in Electronic Engineering from the Univeristy of Nigeria, Nsukka and an MBA from Imperial College, London. He is married and blessed with two children.
Commenting on Mr Okeke’s appointment, his predecessor, Dr Ladipo, had this to say: “Mr Okeke has already made a huge contribution to the Azura family. In his roles as COO and DMD, he has brought an infectious energy to every task he’s been given. He has also brought a wealth of international experience; a commitment to exceptionally high quality standards; well-honed leadership skills; and a seemingly effortless ability to bond with peope from all walks of life. From drivers to directors, from CEOs to cleaners, Mr Okeke is always able to connect at a very natural, very human, level. This combination of humility and charisma, proficiency and passion, perspiration and inspiration, will stand him in good stead as he takes over the leadership of Azura”.
In preparation for Mr Okeke’s promotion to MD, Azura has also broadened the composition of its senior management team. Earlier this year, Mr Fela Somoye and Mr Victor Agboh were both promoted to senior manager status. Accordingly, the company’s Management Committee now boasts the following composition:
- Mr. Edu Okeke, Managing Director;
- Mrs. Nonye Obibuaku, Finance Director;
- Mr. Nicholas Abolo-Tedi, Group ESG Director;
- Mr. Abolaji Olorunkoya, Senior Manager (Finance & Accounting);
- Mr. Fela Somoye, Senior Manager (Legal & Compliance); and
- Mr. Victor Agboh, Senior Manager (Commercial Operations)
The Azura-Edo IPP is a 461 MW gas-fired open-cycle power plant near Benin City and is the first, large-scale, project-financed IPP to be constructed in Nigeria. The facility comprises an open cycle gas turbine power station; a short transmission line connecting the power plant to a local substation; an 800m spur line that connects to the country’s main gas pipeline network; and a gas pressure reduction and metering station.
The construction of the facility was completed 8 months ahead of schedule (a record for the African continent) and became fully operational on 1 May 2018. During peak dispatch hours, the plant produces up to 10% of all the power on the Nigerian Grid.
In total, more than 2,500 people worked on the development and construction of the facility; and the energy that it generates is now consumed in millions of homes and businesses across the country.
The Development Phase
The development phase of the project stretched from 2010 to 2015, spanning three different political eras, with the crucial final stage taking place under the administration of H.E. President Muhammadu Buhari.
The total capital invested in the project was nearly $900m, representing a huge capital investment in one of the most critical sectors of Nigeria’s economy. The debt financing for the project was sourced from 15 banks drawn from 9 different countries, including many of the major European and US development finance institutions (“DFIs”). Inter alia, this group of 15 banks comprises: OPIC (US Govt); CDC (UK Govt); PROPARCO (French Govt); DEG & KFW (German Govt); FMO (Dutch Govt); SWEDFUND (Scandinavian Govts); and the IFC (multilaterals).
The Nigerian Government is also represented alongside these DFIs and is, in fact, the largest single lender to the project through an FCMB loan facility backed by the Central Bank of Nigeria and the Bank of Industry. Also represented amongst the lender group were Standard Chartered Bank and Rand Merchant BanK (co-lead arrangers for the other commercial banks).
The equity capital raise was led by Amaya Capital, a principal investment firm that specialises in early stage investments in energy and infrastructure projects. In 2016 Amaya Capital The equity capital raise was led by Amaya Capital, a principal investment firm that specialises in early stage investments in energy and infrastructure projects. In 2016 Amaya Capital joined forces with Actis, a large global investor with over $14bn of capital raised since inception and a power generating portfolio of 7GW spread across 19 countries. Actis then became the majority shareholder in Azura Power Holdings, where it is helping to transform the business into a multi-country, multi-asset, base load power generation platform.
The other equity sponsors comprise African Infrastructure Investment Managers; Aldwych International Ltd; the ARM-Harith Infrastructure Fund; and the Edo-State Government (which holds a 2.5% equity stake in the project).
The Edo State Government and the Royal Palace of His Majesty the Oba of Benin also played an essential role in land acquisition, community relations, permitting and logistics. Liquidity and credit enhancement, to help secure both the debt and equity finance, was supplied by the World Bank through IBRD partial risk guarantees and through MIGA political risk insurance.
The Construction Phase
The construction of the plant commenced in January 2016 and, at midnight on the 30th April 2018, the construction crew handed over the site to the operations crew, 8 months ahead of schedule. The plant also set new health and safety records, with nearly 5 million man-hours of labour clocked up without a single lost time injury.
The EPC Contractor responsible for the construction of the plant was a consortium comprised of: Siemens AG; Siemens Nigeria Lt; and Julius Berger Nigeria Ltd.
Throughout the construction phase, the plant published on its website a daily, and publicly accessible, account of its activities together with a weekly summary of its progress against key construction milestones.
This unusually high level of transparency not only helped to maintain best-in-class quality standards, it also contributed to the timely completion of the project without any loss time injuries.
Credit for the successful construction of the project must also be given to our host communities: Ihovbor, Orior-Osemwende and Idunmwowina. Inter alia, all three communities greatly assisted with the provision of labour and raw materials.
The Operations Phase
Now that the plant is fully operational, the operations and maintenance contractor is the PIC Group (a subsidiary of Marubeni).
In turn, the operations team interacts on a daily basis with a multiplicity of different government agencies.
For example, the plant’s output is sold to the Nigerian Bulk Electricity Trading PLC which, in turn, on-sells the power to all 11 of the country’s electricity distribution companies.
The fuel-gas for the plant comes from the Oben gas field which is jointly owned by Seplat and NPDC (the government-owned upstream petroleum company).
The transporter of the gas is the government-owned Nigerian Gas Company; and the Transmission of Company of Nigeria transfers the plant’s electricity onto the national grid at the neighbouring Benin-North Substation (which was developed by the Niger Delta Power Holding Company).
Hence, the operational performance of the Azura-Edo IPP serves as a powerful testament to the effectiveness of well-structured public-private partnerships.
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