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Cross River Govt. signs $30 million agreement with Indian Firm

By on November 10, 2011

The Cross River State government has signed an agreement with An Indian firm, Engineering Procurement Construction-Bharat Heavy Electrical (BHEL) to commence construction work on its 52 megawatts gas-driven Independent Power Plant (IPP) in Calabar or in Adiabo, which is near the state capital.

The project is worth $30 million and is being financed with a credit loan bilateral agreement between the Federal Government and the government of India, and would be executed within the next 36 months, according to Adah.

The two year old contract is sealed by the Special Adviser to Governor Liyel Imoke on Investment Promotion, Mr. Gerald Adah, and the Attorney General and Commissioner for Justice of the state, Mr. Attah Ochinke, sign on behalf of the state government, Mr. Ricardo Leandro Garcia, a Spaniard, signed for International Technical Assistance Consultants (ITAC).

Apart from ITAC of Spain, other project managers, supervisors to BHEL include Cross Sector Resources Ltd of Nigeria and Soccoin of Spain.
Construction work is expected to commence in earnest following the signing of this agreement. But the initial delay may be that of site as government is yet to locate a definite site for it.

Liyel Imoke of Cross River, said the $30m loan was tied to the Indian company, revealed that beyond Calabar, the state government has lined up the provision of hydro power plants and advised Local Government Areas outside the state capital to exercise patience as government was doing everything possible to provide them with stable power supply too.

“We hope to get gas supply from Unicem whose gas pipelines are being laid to run through Calabar to its factory at Mfamosing. If this does not work, we shall talk with other gas producing companies in the country. Gas is key to this project and must be taken care of if this project is to work according to plan”, he said.

 

3 Comments

  1. Darryfeast

    November 10, 2011 at 11:06 pm

    Could it be Bharat Heavy Electrical instead of Brath Heavy Electrical,i suppose its a typo.Please confirm…

  2. Anonymous

    November 10, 2011 at 11:49 pm

    Thanks, we have corrected to  Bharat Heavy

  3. Chukwuemelie

    November 14, 2011 at 5:00 am

    It is very unfortunate for Our governor to award such contract or commit people’s fund to project that has no site in place. He even has no consolidated source for the gas supply. He is hoping to get his supply from either here or there. That should have been the integral part of the contract.Mind you, by the time the site is located in two to three years time, the contract will be due for upward review. Those in governance must know what to tell his people rather than playing on our collective intelligence.