Ondo, firm plan $500 million power plant to boost industrialization
The Ondo State government and a Korean firm, Kingline Development Limited, have sealed a deal for construction of a 550 mega watts power plant valued at $500million.
Meanwhile, stakeholders in the energy sector have decried alleged lack of vision on the part of the Federal Government to achieve the right energy mix from renewable sources of energy, saying the situation is responsible for the nation’s energy challenge.
The electricity project, named Kingline Ondo IPP Project, is to be situated at the Ondo State International Industrial Park, Omotoso. The power plant which is to be operated using the Public-Private Partnership (PPP) module is to generate about 550 MWs in the first phase using simple-cycle with combined-cycle option.
Chief Business Development Officer at Kingline Development Ltd, Akinnola Fola, who briefed newsmen in Abuja at the weekend, noted that the project would transform the state and make it an industrial hub in the region.
“The output now is $500m for 550MW. This is the phase1 of the project. At the second phase, we would do another 550MW to bring it to 1100MW.
“The land for the project has been secured as a contribution from Ondo State government. The total area for the project is 250 acres. Also, the EPC contractor’s name will be announced shortly after concluding the competitive bidding exercise currently ongoing to select the best contractor among the offers received.”
Fola said the project was progressing well, as approval for evacuation study had been secured from the Transmission Company of Nigeria (TCN). The evacuation study is one of the key documents that ensures that the generated power can be evacuated and taken on the national grid.
He spoke on other preparations towards the project. “NBET had already shared the draft PPA with us for reviewing and the necessary documentations for signing the PPA are being put together at the moment. Due diligence exercise is ongoing with the Gas Aggregation Company Nigeria Limited (GACN), while licensing documentation after approval to generate power under unsolicited condition on the strength of our partnership with Ondo State is under preparation. It will be submitted shortly.
“On the equity contribution, we are 100% equity funded. Our debt raising is ongoing with Global Investment Bank, the leading fund raiser. Environmental Impact Assessment is ongoing, while discussion with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, for political risk has commenced as well. These are the status of the various approvals from the agencies.”
The stakeholders in the energy sector also advocated social security in form of National Basic Income Scheme (NaBIS) to alleviate the suffering of Nigerians who are unemployed in the Niger Delta, stressing that the violence in the country will be best addressed with introduction of NaBIS for the unemployed youths.
Executive Director, Environmental Rights Action ERA/ Friends of the Earth Nigeria (FoEN) , Godwin Uyi Ojo, while speaking at a one day workshop in Benin city at the weekend said community participation in national renewable energy policy process is key to securing access and ownership, just as he advocated energy transition from dirty energy to renewable sources such as solar, wind and energy, noting that it “will allow community people to share in the investment and benefits rather than big corporation alone.”
In his presentation with the theme, “The Prospect of Community Energy in Nigeria”, Ojo stressed the need for government to focus on investment in renewable energy research, green technology, subsidies and zero tariffs to promote non-grid clean energy in systems.
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