Kwara, firm sign N36.8b power plant pact
By Yakubu Lawal, Asst Energy Editor
THE Kwara State government has signed an agreement with an indigenous firm, Alliance Energy Limited (AEL), to build a power plant at the cost of N36.8 billion ($275m).
The plant, which will begin operations in 2006, is expected to generate about 105 megawatts of electricity. It will be located at Ago-Oja, which is 15 kilometres away from Ilorin, the state capital.
The Federal Government has approved the project and has given concession that future power plants can sell power directly to industries and private consumers.
The plant will consume about 126 million standard cubic feet of gas per day, to be supplied by the Nigerian Gas Company (NGC) through a 27 bar pressure in the pipeline.
The project, initiated by the Kwara State government, will also see the state holding a minimum stake in the venture while AEL will remain the majority stakeholder.
The state governor, Bukola Saraki said the government aspires to be the first state to attain uninterrupted power supply in the country.
"We are determined to ensure stable power supply in Kwara State as part of efforts to boost industrialisation and provide employment" Saraki stated.
According to him, in addition to the gas fired power plant by Alliance Energy Limited, the state government will also explore opportunities to generate electricity from coal.
He urged the Independent Power Project (JPP) promoters to ensure that the project was completed on schedule.
Also speaking on the project, the executive chairman of AEL, Mr. Wole Omoboriowo said that his company, with it's technical partner, Black and Veatch, a U.S. based company is committed to building the plant. He added that the firm was now putting together a bankable feasibility report to kick-start the project.
"In the past six months, there has been major structural development on the independent power plant project, which will ensure the actualization of the project.
"As requested by the government, the plant will be up and running by the third quarter of 2006" he said.
To this end, it has been agreed that Alliance Energy shall fund the construction of the pipelines from Ajaokuta to site at an estimated cost of about N21.4 billion ($170 million) whilst NGC will be responsible for providing the required expertise to get the job done.
"This cost and that of financing the construction of the power plant will be done through a combination of equity and foreign debt finance, which in principle has been secured pending the bankable feasibility report from Black and Veach" he stated.
He added that at a meeting held with the Minister of Power and Steel, Senator Liyel Imoke the structure of the plant was agreed upon.
The AEL chief added that the firm will generate, transmit and distribute the power it produces.
"Kwara State in particular has enormous potentials in that it is a growing, stable and evolving economy. You have a whole list of factories, industries, which rely 24 hours on generators. So we did an initial survey and we identified the present opportunities within small-scale, medium and high-scale industries" Omoboriowo said.
