A Review of the Nigerian Energy Industry

Kano 35mw IPP project to gulp N14.2bn

ERERA Power lines07 October 2013, Kano – The two hydro-electricity power projects that are expected to produce 35 megawatts of electricity in Kano State will gulp N14.2 billion, the State governor, Engineer Rabiu Musa Kwankwaso has said.

The Governor said the contract for the execution of the two projects which will be sited at Tiga and Challawa Gorge dam has been approved by the state executive council at the total cost of N14, 228, 852, 600.

Kwankwaso in a statement by his media aide, Halilu Dantiye said the two projects will be jointly financed by the State government and the 44 Local government councils.

Under the funding agreement, the 44 local governments will contribute N250 million each, totalling N11 billion while the State government will contribute the balance of N3, 228, 852, 600.

He explained that the Tiga dam will generate 10Megawatts while Challawa Gorge dam will generate 25megawtts of electricity.

He said electricity generated from the two projects will be used mainly to power water treatment plants, street/traffic lights and possibly industrial areas in the State.

The governor stated that the design and construction of the two projects was awarded to Messrs Skipper Nigeria Ltd, a subsidiary of Skipper Electricals, a leading Indian Multinational Company having their own manufacturing plants in Lagos (Nigeria) and Sharjah (UAE), apart from three (3) manufacturing plants in India.

According to the statement, the company is a well reputed and renowned name in Transformers, Sub-Stations, Sub-Stations Equipment, CT, PT, OHL Hardware and Accessories among others Worldwide.

Accordingly, the state executive council has directed the state Ministry of Works, Housing and Transport to initiate process of signing of agreement for the commencement of the two projects which are significant milestones in the socio-economic transformation of the state.

In the same vein, the state Ministry of Finance was instructed to release mobilization fees to the contractor upon the presentation of Bank Guarantee from a reputable bank and subsequent payments upon valuation of certificates.

– Daily Trust

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