BUSINESS

Enugu Govt, Austrian firm sign $100m FDI agreement to boost water infrastructure

Maureen Ikpeama7 months ago7 months ago34498 mins

Enugu State Government and WANDE NEXUS, an Austrian firm, have signed an agreement to implement the Sustainable Last Mile Connectivity and Advanced Metering Infrastructure (AMI) Project in Enugu, to boost portable water supply in Enugu state

WANDE Nexus is to inject $100 million as Foreign Direct Investment, FDI, to modernise water infrastructure, improve service delivery, and ensure equitable access to clean water for all households in Enugu City.

Speaking at the event which took place on Monday at Government House, Enugu, ithe state Governor, Dr Peter Mbah described the signing as an example of the relationship that could exist between a sub-sovereign and a sovereign,. He also described it as a major step to getting water to the last mile in Enugu City..

Pix: Enugu Govt and Wande Nexus signing the investment agreement

“We now have an investment of $100 million to deal decisively with the last mile connection, the downstream part of our water system. This huge sum shows that the economic reforms of the Federal Government and our effort to position Enugu as the premier destination for investment are yielding results because this is a major FDI, not just for us as a state, but even as a country.

“For the record, this is not a case where we are just signing an agreement that is exploratory. This is an agreement we signed today for the funds to begin to flow. This is a discussion that started eight months ago. From signing an MoU, to Terms Sheet, to getting a Concession Agreement, today we are signing the final agreement and we expect that the investment funds will start to flow immediately, as they should have started with the connectivity to the last mile, and the procurement of the metres will commence,” he said.

The Governor explained that while the administration had been able to increase water production from an occasional 2 million litres to 120 million litres, the biggest challenge was in expanding the network and connecting the tertiary pipelines to the various homes. He, however, noted that with the signing of the FDI agreement, the problem would become a thing of the past.

Pix: Gov Mbah (L) Austrian Ambassador to Nigeria, Thomas Schlesinger( R)

“This is purely an investment of $100m being injected in our downstream water sector and we have the responsibility, as a state government, to continue to manage the upstream sector. If you look at our budget for 2025, there is fund slated for water, and that is essentially to increasse our water production capacity. The volume will grow from 120 million litres of water per day to 200 million litres per day.

In his address, Ambassador Schlesinger said the investment had the strong backing of the Austrian Government, and commended Governor Mbah for building the necessary international relationships and showing a strong commitment to making life better for his people.

“I wish to laud His Excellency Dr. Peter Mbah for his vision to transform the water management systems for Enugu City, with its ultimate goal to ensuring equitable access to clean water.

“Governor Mbah is a great friend of Austria. He has visited Vienna twice, where he met with ministers, international organisations and the business community; and he is a very active supporter of Austrian companies in Enugu.

“This investment in the amount of $100 million is, therefore, a testimony of his excellent work and his vision for Enugu State,” he said.

He expressed strong confidence in the capacity of the Chairman of WANDE Nexus Group, Dr. Ugochukwu Ugbor, to lead the transformation of the downstream water sector.

Pix: Gov Mbah(Ambassador Schlesinger(R)

“In order to implement such a plan as the governor has, you need strong leadership at the top of the project, represented by Dr. Ugochukwu Ugbor, the Chairman of WANDE NEXUS. He spent more than 20 years in Austria, where he played key roles in international organisations, addressing critical infrastructure and sustainability challenges, as enshrined in another Sustainable Development Goal of the United Nations,” he stated.

Pix: Gov Mbah (L) Ugbor(R)

Earlier in his address, Dr. Ugbor said he and the rest of Austrian investors were encouraged into the venture by the speedily improving ease of doing business, conducive investment environment, and trustworthiness exhibited by the Mbah administration, adding that the company would deliver on expectations, create 500 direct jobs for a start, build human capital in modern water management, and also directly improve health and economic opportunities in Enugu State.

The investment agreement was signed in the presence of the Austrian Ambassador to Nigeria, Thomas Schlesinger, Enugu State Governor, Dr Peter Mbah and top Government officials.

Author: Maureen Ikpeama