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FG, States, LGs spend $8.26bn on NIPP projects

By BusinessNews Staff on February 22, 2015

The federal, states and local governments in the country have collectively spent $8.26 billion on power projects being built under the National Integrated Power Project (NIPP), through the Niger Delta Power Holding Company (NDPHC).

Speaking on Friday at the official inauguration of the 750 megawatt capacity Olorunsogo Power Plant phase 2, which was built under the NIPP, President Goodluck Jonathan said the collective funding of the projects was in line with the agreement reached by the three tiers of government at the National Economic Council (NEC) to finance critical power infrastructure development project from the Excess Crude Account.

The President, who will today also inaugurate the 220 megawatt capacity Unit 6 of Egbin Power Station in Lagos, said that out of the $8.26 billion spent on NIPP, the Olorunsogo Power Station gulped $650 million.

He said Friday’s inauguration was a continuation of the programme of his administration in the power sector.

“Today’s formal commissioning, however, is in fulfillment and commemoration of the completion of the four gas units and the two steam turbines, which actualise the 750 megawatts plant. This station is the third of the 10 power plants, under the NIPP programme located in different parts of the country that I have had the honour of officially commissioning. In 2003, I commissioned two of these NIPP power stations. These were the 434 megawatt Geregu Station and the 500 megawatt Omotosho Station in Kogi and Ondo states, respectively. I am convinced that in line with our aim of boosting the national electricity generation capacity by over 4,700 megawatts by the end of this year, the others will follow in quick succession,” he explained.

The President added that he had lived up to his campaign pledge to make power reform a priority and a reality, stressing that yesterday’s epoch-making event consolidated his administration’s progress and also reinforced his resolve towards making a permanent difference in the development of the country, through regular and quality electricity supply.

According to him, this agenda has ushered in huge capital investment and will continue to boost private sector investment in the power sector.

“It is instructive that to improve the capacity of the transmission grid to effectively evacuate the improved power generation capacity and enhance delivery to final industrial and domestic consumers, high voltage transmission lines on 330KV Olorunsogo – Ayede in Oyo State and 330KV Olorunsogo-Ikeja West single cycle line in Lagos State have been put in place. These transmission infrastructure and associated substations have increased power evacuation capacity of the Transmission Company of Nigeria (TCN), within the South-west geopolitical zone and indeed, the entire country,” he said.

He also stated that the proceeds of the power privatisation would be used to boost the transmission infrastructure.

Also speaking, the Minister of Power, Prof. Chinedu Ositadinma Nebo noted that the NIPP project was moribund until President Jonathan revived it, adding that the President’s contribution to power generation and system stability was immeasurable.

According to him, actual and available generation capacity have consistently hovered around 5,000 megawatts, with the NIPP contributing 2,500 megawatts, adding that these milestones are a testament to President Jonathan’s doggedness.

Nebo also noted that before President Jonathan assumed office, the TCN was barely able to evacuate 3,000 megawatts, adding that this administration has since doubled this capacity to 6,000 megawatts.
The power minister also disclosed that the handover of the assets to the private sector is already yielding dividends.

He stated that Ughelli Power Station, which was generating 160 megawatts before the handover is now delivering 610 megawatts to the national grid, while Egbin Power Station in Lagos has recovered its full capacity of 1,320 megawatts.

Nebo also said that Kainji has improved from 80 megawatts to 150 megawatts, with a target to hit 340 megawatts, while the sixth unit in Jebba is ready to deliver additional 96 megawatts to the existing 450 megawatts.

He also said that Shiroro, which was generating 450 megawatts from units 1, 2 and 4 before the handover is now set to add 150 megawatts from unit 3 to bring its capacity to 600 megawatts.

The Power Minister further stated that collaboration between the Ministry of Power and that of Petroleum Resources has increased gas supply to the power stations but added that vandalism of gas pipeline network has remained a major challenge.

In his remark, the Managing Director of Niger Delta Power Holding Company, owners of NIPP, Mr. James Abiodun Olotu said all the six units of the Olorunsogo plant were ready to deliver power to the grid.

He debunked claims in some quarters that the NIPP plants that were inaugurated earlier were not delivering power because of lack of gas, adding that one of the plants had already operated close to 10,000 hours.

[ThisDay]

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