Obama’s “Power Africa” means a billion dollar payday for General Electric

[CuteOldGuy]

Wow! Who would have thought that a government program of this size would benefit one of President Obama's closest friends, and the company he manages, which just happens to pay $0.00 (zero, zip, nada, zilch) in federal income taxes? Coincidence? You be the judge:

Obama's 'Power Africa' Plan Greases Billions In Deals For General Electric

In Cape Town, South Africa over the weekend, President Obama talked about a new energy plan called “Power Africa.” He described it as “a new initiative that will double access to power in sub-Saharan Africa.” The president implied that the U.S. government will invest $7 billion in taxpayer money to help bring 10,000 mw of electricity to sub-Saharan Africa. Electricity, he said, is “the lifeline for families to meet their most basic needs and it’s the connection needed to plug Africa into the grid of the global economy. You’ve got to have power.”

Providing that power could be a real boon to American (and global) companies focused on power generation and energy management. Indeed, as the president said, “my own nation will benefit enormously if you reach full potential.”

One of the big partners for the president’s plan is General Electric GE -1.89%. Among the private companies that the president said have “committed more than $9 billion in investment” to the Power Africa project, G.E. appears to be front and center. According to the White House statement on Power Africa, “General Electric commits to help bring online 5,000 megawatts of new, affordable energy through provision of its technologies, expertise and capital in Tanzania and Ghana.”

Some of this investment is already in the works. In late June G.E. signed a tentative deal with the government of Ghana to build a 1,000 mw power plant. This plant would likely be fueled with natural gas sourced from the Jubilee offshore field, a multi-billion-dollar project, in which Texas-based Anadarko Petroleum APC -0.02% has a large stake. G.E. is newly focused on Africa, and is actively marketing power generation products to African companies, and recently sold Jenbacher natural gas engines to Diageo DEO -1.01% to power its Nigerian breweries.

General Electric will be perhaps the biggest beneficiary of that $7 billion in U.S. taxpayer funds that Obama says will underwrite Power Africa. The lion’s share of the $7 billion appears to be directed by the U.S. Export-Import Bank, which will “make available $5 billion in support of U.S. exports for the development of power projects.” This doesn’t mean that Ex-Im is spending or investing those $5 billions, rather the job of the Ex-Im bank is to help finance trading opportunities that private sector lenders are not willing to take a risk on. As Ex-Im describes its mission: “We assume credit and country risks that the private sector is unable or unwilling to accept. We also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.”

G.E. CEO Jeffrey Immelt, who until early this year chaired the president’s Council on Jobs and Effectiveness, is accompanying Obama on his Africa trade mission. Immelt will clearly appreciate a financial backstop from Uncle Sam. Federal guarantees will reduce G.E. financial risks in Africa and will help it compete better against Chinese companies, which have been falling over themselves to invest in Africa. U.S. trade with Africa has grown more slowly. According to White House numbers trade between the U.S. and sub-Saharan Africa is up about 2.5 times over the last decade. America exports about $22 billion of goods, and we import about $50 billion — primarily oil.

But it’s worth remembering that when it comes to building power plants, $7 billion isn’t a lot of money. In Tanzania, Japanese banks are financing a $414 million Sumitomo-built 240 mw gas-fired plant. While in Ghana the Chinese are building a 400 mw hydropower plant for more than $600 million.

The capital needs are enormous. According to the White House fact sheet on Power Africa, more than $300 billion in investment will be required to bring electricity to the two-thirds of the population in sub-Saharan Africa that currently lack it.

In addition to General Electric, the White House also said that private companies lined up to invest include Heirs Holdings, the investment vehicle of Nigerian tycoon Tony Elumelu, which has pledged $2.5 billion. Aldwych International, a Dutch-backed company, plans a 400 mw wind power project in Kenya. And then there’s Symbion Power, which is run by Lord Richard Westbury, a former officer with the British special forces, and which counts former U.S. Ambassador Joseph Wilson (husband of outed CIA agent Valerie Plame) as a director. Symbion has done a handful of power projects in Iraq, and recently completed a 55 mw diesel-powered electricity project in Tanzania.

According to the White House, smaller projects competing in an “Off-Grid Energy Challenge” within the Power Africa plan will be funded with $2 million from the U.S. African Development Foundation. These will likely include Soccket, a soccer ball with a built in electric generator that harnesses and stores the kinetic energy generated by kicking the ball around. Bill Gates is an investor. Apparently there was one of these balls on Air Force One. White House aide Mike Froman explained the idea to the press pool on Air Force One: “Kids play soccer all day long. They take the thing, the ball home, and you can plug a lamp into it and they can read at night. Or they can plug a cell phone charger into it.” It’s more a gimmick than a solution, but every little bit helps.

Unbelievable.

http://www.forbes.com/sites/christop...deals-for-g-e/

[BigLouie]

Global projects such as this just are beyond your understanding it appears. Key phrases in your post:

it’s worth remembering that when it comes to building power plants, $7 billion isn’t a lot of money.

Some of this investment is already in the works.

This doesn’t mean that Ex-Im is spending or investing those $5 billions, rather the job of the Ex-Im bank is to help finance trading opportunities that private sector lenders are not willing to take a risk on. As Ex-Im describes its mission: “We assume credit and country risks that the private sector is unable or unwilling to accept. We also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.”

[BigLouie]

This project goes off just as it is NO MATTER WHO IS PRESIDENT. Tea Party, Republican, Dem, makes no difference. This is GE and this project happens. Notice that NO ONE from the Senate or Congress said a word.

[Jackie S]

This entire thing is about business, period. Granted, I don't think the President had to spend $100,000,000 to go over there for a glorified photo op, but in the long run, what helps big American Corporations helps America, whether it be GE, or Halliburton, or Exxon.

[JohnnyCap]

Originally Posted by Jackie S

This entire thing is about business, period. Granted, I don't think the President had to spend $100,000,000 to go over there for a glorified photo op, but in the long run, what helps big American Corporations helps America, whether it be GE, or Halliburton, or Exxon.

What helps big corporations destroys humanity, be it American, Chinese, or sub-Saharan African.

No way should taxpapyers have had to pay to send his children to Africa. Michelle and Barack would pay for that if they had an ounce of integrity. I believe that of any president or official.

[i'va biggen]

Wingers would rather sit in the dark.

[LexusLover]

Clinton had Ken Lay in Afghanistan, Pakistan, and India. Obaminable has GE in Africa.

But it takes a Bush to close it.

[universalenergy]

At GE our motto is Good Enough.

[BigLouie]

The cost of the president going anywhere will always be the same no matter who is president.

[CJ7]

Originally Posted by LexusLover

Clinton had Ken Lay in Afghanistan, Pakistan, and India. Obaminable has GE in Africa.

But it takes a Bush to close it.

yup, while he was at the Olympics ...

closed that GE deal

[LexusLover]

Originally Posted by CJ7

closed that GE deal

I think the GE deal ain't "closed"!

[CJ7]

Originally Posted by LexusLover

I think the GE deal ain't "closed"!

oh, my bad, I could have sworn you said it took Bush to close it

[zerodahero]

I bet G.E. won't have to pay taxes on that 7 Billion dollar deal.

[gnadfly]

I wonder what these GE power plants run on? Gas, Coal or endangered elephants?

[i'va biggen]

Originally Posted by gnadfly

I wonder what these GE power plants run on? Gas, Coal or endangered elephants?

Bull shit from the right beats gas for cheap.