Enron barge deal to aid Nigerian power crisis

State-owned National Electric Power Authority (NEPA) has reached an agreement with Enron for the supply of 270 MW from nine barge-mounted power plants pending the completion of a 560 MW gas-fired plant. The total value of the electricity project is $800 million. The agreement is an amendment of an earlier deal for 90 MW that was criticised by the World Bank on the grounds that it was too favourable for Enron. However, switching fuel from diesel to natural gas allowed Enron to supply power at the lower rate of N$3/kWh (¢3/kWh) compared to N$8.5/kWh (¢8.7/kWh) under the earlier agreement. In order to secure the deal though, the state government has agreed to subsidise the project to the tune