BREAKING NEWS: FG Signs Pact To Build $1 Billion Power Plant In Akwa Ibom
……………………The Federal Government, represented by the Nigeria Bulk Electricity Trader (NBET), has signed a Power Purchase Agreement (PPA) with Qua lboe Power Plant Limited (QIPP) to build a 540MW gas-fired power facility worth $1.1billion in Akwa Ibom State.
Furthermore, the QIPP, NBET, Nigerian National Petroleum Corporation (NNPC) and the Ministry of Finance struck a Put/Call Option Agreement (PCOA). The Minister of Power, Works and Housing, Babatunde Fashola, who presided over the event yesterday in Abuja, explained that the PCOA details the government’s obligations supporting QIPP’s PPA.He noted that the agreement marks another effort to increase power supply nationwide.
QIPP was jointly developed by African energy infrastructure company, Black Rhino Group, Dangote Group and the NNPC, following the purchase of the rights to develop the project from Mobil Producing Nigeria Unlimited, a joint venture between ExxonMobil subsidiary, Mobil Producing Nigeria and the national oil company.
Fashola noted that QlPP would be one of the lowest cost thermal power plants in the country due to its efficient design and competitive gas price. The project is to get gas from Mobil Producing Nigeria under a 20-year Gas Sales Agreement via a new 400mmscfd undersea gas pipeline from the oil firm’s existing offshore production facilities.
The power plant also unlocks investment in transmission infrastructure, including a new 58 kilometres transmission line to be built by QIPP.Black Rhino Chairman, Emir Muhammadu Sanusi II, said: “QIPP will utilise Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power. QIPP is an example of how the Federal Government and private investors can work together to develop infrastructure that has a real socio-economic impact in our country.”
The Chief Executive Officer, Brian Harlihy, said the project would further catalyse investments in infrastructure nationwide and support government in building a sustainable power sector that works for all Nigerians.
The President of Dangote Group, Aliko Dangote, said: “By closing the gap between Nigeria’s generation capacity and the energy required to underpin economic growth, we are supporting Nigeria’s future industrial growth.”
NNPC’s Group Managing Director, Dr. Maikanti Baru, pledged the joint venture would work to support the plant in line with government’s initiatives for power sector development in Nigeria.
QlPP benefits from a World Bank-approved $150 million Partial Risk Guarantee, and an Environmental Impact Assessment and Resettlement Action Plan approved by the Federal Ministry of Environment.
The project will continue with the advancement of its project finance programme and seek to reach financial close in second half of 2018. QIPP is expected to commence construction shortly thereafter and commercial operations in second half of 2021.