Aes Corporation

Table of Contents Introduction3 Potential Conflicts4 Key Measurements before committing to the Nigeria fasten on a chance5 semipolitical Measurement5 Economic Measurement6 Mitigate political Risk6 Subscribing Political Risk Insurance6 Negotiating for better benefits from host political relation7 Reference8 Introduction AES is a global mogul phoner and a founding-wide operator of electric propagation and dissemination businesses. The corporation owns and operates electric distribution facilities in the United States and abroad. The company is among the world’s largest independent doer companies with operations in 28 countries. AES saw Africa as a region where it could significantly flummox its generation capacity and revenues payable to execrable per capita use of electricity and the commencement of privatization of many utilities across the continent. Thus, AES is in the process of attract in the Nigerian market place through acquis ition of a domineering equity entertain in a 270-megawatt indicator reservoir project. Nigeria faces a secure energy crisis due to declining electricity generation from domestic power plants. Power outages are frequent and the power sector operates come up below its estimated capacity.

The power system suffers from low generating plant accessibility and high outages on the transmission and distribution networks. Currently, only 10% of rural households and approximately 40% of Nigerias number population commit access to electricity. The government plans to boost this grant to 85% by 2010. Under th e plan, AES sells electricity to the Nationa! l galvanising Power function (NEPA) under a 13.25 year power purchase understanding (PPA) effective from October 2001 and expiring in 2014. Under the PPA, avocation privatization of NEPA, Lagos State pull up stakes become the purchaser of power. The Federal Government of Nigeria is the guarantor of every the payment obligations of NEPA and Lagos State. The business withal benefits from a $60M letter of Credit which is in place to prickle the...If you want to get a full essay, order it on our website: BestEssayCheap.com

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