21 February 2018, Sweetcrude, Abuja – The Sagamu Independent Power Plant (SIPP) has given an engineering, procurement, and construction (EPC) contract to China Energy Engineering (Energy China) to build a 400MW combined cycle power plant in Nigeria.
The new power plant will be located at Sagamu in Ogun state and will be built with an investment of around $550m although both SIPP and Energy China did not disclose the contract value.
According to reports on the contract terms, Energy China will be responsible for delivering engineering services, construction and balance of the new power plant, on a turnkey basis.
Commenting in a publication as regards the contract, the SIPP managing director/CEO, Mr. Samuel Marcus said, “The Execution of the EPC contract marks a significant milestone for the project and a major step forward in our objective of meeting the Energy needs of Nigeria.
“Energy China is leading the financing of the project with strong support from International banks in China. SIPP expects to reach a financial close on the new combined cycle power project by the third quarter of this year.”
He added that “The new Nigerian power plant will break ground this year and will aim to enter into operations in 2020. Building on our extensive experience of working around the world as one of the biggest Energy and Infrastructure Corporation especially in the power plant market, we are looking forward to the successful completion of the Project, as this will be a good Cooperation for the people of Nigeria and China.”
The Sagamu power plant will be carried out in two phases. In the first phase, the Nigerian power plant will produce 250MW to the national grid using open circle gas-fired turbines (OCGT) while in the second phase, the plant’s capacity will be increased to up to 400MW by retrofitting it into a combined-cycle power generation facility.