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Delta floats N27.2bn independent power plant

Posted by By Austin Ogwuda on 2006/07/19 | Views: 292 |

Delta floats N27.2bn independent power plant


ASABA—WORRIED by poor generation of electricity by Power Holding Company of Nigeria (PHCN), Delta State government has floated its own Independent Power Plant.....

Delta floats N27.2bn independent power plant

By Austin Ogwuda
Posted to the Web: Wednesday, July 19, 2006

ASABA—WORRIED by poor generation of electricity by Power Holding Company of Nigeria (PHCN), Delta State government has floated its own Independent Power Plant (IPP) project at a cost of N27.2 billion.

State Commissioner for Power and Energy, Mr. Emmanuel Ighomena, while briefing newsmen in Asaba yesterday on the activities of his ministry said Government has far committed the sum of N233 million covering project designs, land acquisition, procurement of license and consultancy services among others. He also said that the ministry “has embarked on the construction of the first phase of a Delta State 132 kv power grid transmission line from the Delta IV Power Station at Ekakpamre near Ughelli to Ogwashi Uku to stabilize electricity power supply with the state.

The first phase of this project, which involves the installation of one 15 MVA power/injection transformer substation each at Ughelli and Ozoro will terminate at Ozoro and it is to be executed at a total cost of N4.3 billion”, adding that “these projects are to be implemented under the auspices of the special intervention initiative of 13 percent derivation fund”.

Still on the IPP project, the commissioner stated that “it is to be located at Oghareki where an appropriate site has been acquired. The chosen technology is the combined cycle power plant that will generate power by two straight run gas turbines with initial 256 MW capacity”.

He further added that “Siemens of Germany has indicated interest to partner with the state government as one of the investors in the project which has been evaluated as a commercially viable project because of the abundance of natural gas in the state”.

The project, he went on, “will be managed on a Build-Own-Operate (BOO) basis has been estimated to cost N27.2 billion out of which the sum of N4.5 billion representing 12.5 percent equity share will be provided by the state government while the remaining 87.5 percent will be sourced from private investors”.

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.