18 June 2015, Lagos – A former Minister of Power and Chief Executive Officer of Geometric Power Limited, Prof. Bart Nnaji, has stated that his company and General Electric would jointly build 1,080 megawatt power plant to be located in Abia State.
Nnaji told Reuters on the sidelines of West African Power Industry Convention (WAPIC) in Lagos that the first phase of the project that would generate 500 MW would be completed in 2019 at a cost of $800 million.
He said the firm had also appointed London-based Standard Chartered Bank as financial advisers for the first phase of the plant.
“We have a 1,080 megawatt project in partnership with General Electric. The power goes to the national grid. What we are doing is to build up power projects in this way,” he said.
Nnaji said the firm was in discussions with some Chinese, European and US investors and expected financial close by year-end. Construction would start early next year.
Geometric Power has a 141 megawatt captive power for industrial use in Abia State, which is yet to start operation.
Speaking at the WAPIC conference, the Managing Director of Aiteo Power & Gas Group and pioneer Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Ransom Owan, stated that the privatisation of 10 power stations built under the National Integrated Power Project (NIPP) has been stalled due to lack of gas supply.
Owan said the federal government could generate up to $5.6 billion in the sale of the power plants, adding that “lack of gas is stalling the deals.”
The first phase of the NIPP project was designed to generate 4,771 megawatts from the 10 gas-fired power stations with committed investment to date from the federal, state and local governments in Niger Delta Holding Company (NDPHC) and NIPP amounting to $8.475 billion.
A Status Report presented to the 31st meeting of the Board of Directors of the NDPHC held on April 17, 2015, which was obtained by THISDAY had revealed that six out of the 10 power stations are ready to generate 2,910.1 megawatts of electricity, subject to availability of gas to the plants.
The report identified the six NIPP power plants, which are already adding power to the national grid.
A breakdown of the generating capacities of these plants showed that the 562.5 megawatt-capacity Calabar Power Station built by Marubeni is now generating 112.5 megawatts; 451mw-capacity Ihovbor Power Plant in Edo State is now producing 225 megawatts; while the 451mw-capacity Sapele Power Station, also built by Marubeni is currently generates 112.5mw.
Others include 450 mw-capacity Olorunsogo Power Station in Ogun State, which generates 225megawatts; 450 megawatt-capacity Omotosho Power Station in Okitipupa Local Government Area of Ondo State which generates 225 megawatts and 434.1mw-capacity Geregu Power Station in Kogi State, which generates 289.4 megawatts.
The report also disclosed that there are no committed gas supplies for Geregu and Ihovbor.
The National Economic Council (NEC) under the former administration had since approved that each of the generation stations be incorporated as a limited liability company with 80 per cent of their shares offered for sale to private investors.
However, the privatisation of the 10 plants, scheduled for completion mid last year has suffered setbacks due to inadequate gas to test-run completed ones.
– This Day