Power: Ondo plans $500m, 550Mw IPP to boost industrialisation

KINGLINE workshop

KINGLINE workshop

*As NERC links dip in power sector revenue to gas supply shortages

28 June 2015, Abuja – The government of Ondo State and a Korean firm, Kingline Development Limited, have sealed a deal that will lead to the construction of a 550 megawatts independent power plant worth $500 million and which is planned to support the State’s industrialisation aspirations.

The project, Kingline Ondo IPP Project is to be situated at the Ondo State International Industrial Park in Omotoso and will be operated through the Public-Private Partnership (PPP) framework.

According to its design plans that were disclosed to reporters on Sunday in Abuja by the Chief Business Development Officer at Kingline Development Ltd, Akinnola Fola, its first phase will generate about 550MW using both simple-cycle and combined-cycle options.

Fola, who noted that the project would transform the State and make it an industrial hub in the South West region, stated: “The output now is $500 million for 550MW. This is the phase one of the project. At the second phase, we would do another 550MW to bring it to 1100MW.

“Also, 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 Engineering Procurement and Contracting (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 explained.

On the status of the initial phase of the project, he said that the project was progressing well, as approval for evacuation study from it 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 to the national grid using the transmission facilities of the TCN.

He spoke on other preparations towards the project like the power purchase agreement (PPA) and gas supply agreement (GSA saying: “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.”
*Chineme Okafor – Thisday

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