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GE In Preliminary Pact To Work On Nigeria Power-Project Plans

DOW JONES NEWSWIRES General Electric Co.'s (GE) energy business reached a five-year memorandum of understanding to work with the Nigerian government to develop roughly 10 gigawatts of power-generation capacity over the next 10 years. The Nigerian government is aiming for $10 billion in investments for electricity infrastructure projects. While the preliminary accord doesn't outline investment amounts or commitments, GE potentially may invest 10% to 15% in individual projects in which the company would supply power-generation technology and services. The infrastructure plans are part of Nigerian President Goodluck Jonathan's efforts to focus attention on reining in government spending and luring foreign investment to projects that are needed to spur growth, such as power plants and roads. A top oil exporter, Nigeria is among the continent's fastest-growing economies with a large consumer base. The preliminary pact follows a May 2009 infrastructure memorandum of agreement between GE and Nigeria. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com

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