The Federal Government has started shopping for investors to provide infrastructure, especially a pipeline network needed to deliver gas to the five National Integrated Power Projects, NIPP, stations in the country.
The stations – Gbarain Generation Company Limited, Alaoji Generation Company Limited, Calabar Generation Company Limited, Egbema Generation Company Limited and Omoku Generation Company Limited – which were constructed by the Niger Delta Power Holding Company, NDPHC, have a combined capacity to generate about 1,500 megawatts of electricity.
Investigations showed that negotiations had reached an advanced stage between the Federal Government and some oil and gas firms to provide needed facilities, especially pipelines to these companies.
National Mirror learnt that Vice-President Namadi Sambo was directly involved in the negotiation with the prospective gas suppliers.
A source, who confirmed the development said: "Once construction is concluded, it would not take long for gas to be supplied as each of the companies has terminals to receive the product."
He said other NIPP firms, including Olorunsogo Generation Company Limited, Ogorode Generation Company Limited, Ihovbor Generation Company limited, Geregu Generation Company Limited and Omotosho Generation Company Limited are already operational as they have gas supplies.
The Managing Director of NDPHC, Mr. James Olotu, said the provision of gas would not only boost power generation but also facilitate the quick privatisation of the NIPP stations.
The government stated that 80 per cent of its stake in 10 new NIPP power plants are to be sold to indigenous and foreign investors in order to attract additional funds required to build infrastructure, expand capacity and provide more electricity to consumers.
The stakes to be sold in the 10 firms are valued in excess of $5bn while the remaining 20 per cent would be retained through the instrumentality of the, NDPHC, which is jointly owned by local, state and federal governments.
The companies include the Alaoji Generation Company Nigeria Limited – situated near Aba in Abia State with total gross installed capacity of 831.3 MW; Benin Generation Company Limited –situated near Benin City in Edo State with total gross installed capacity of 507.6 MW; Calabar Generation Company Limited – situated near Calabar in Cross River State with a total gross installed capacity of 634.5MW and Egbema Generation Company Limited – situated near Owerri in Imo State with a total gross installed capacity of 380.7 MW.
Others are the Gbarain Generation Company Limited – situated near Yenegoa in Bayelsa State with total gross installed capacity of 253.8 MW, Geregu Generation Company Limited – situated in Ajaokuta in Kogi State with total gross installed capacity of 506.1 MW; Ogorode Generation Company Limited – situated near Sapele in Delta State with total gross installed capacity of 507.6 MW and Olorunsogo Generation Company Limited – situated in Olorunsogo in Ogun State of Nigeria with total gross installed capacity of 754 MW.
Also slated for privatisation are the Omoku Generation Company Limited – situated near Port Harcourt in Rivers State with total gross installed capacity of 264.71 MW and Omotosho Generation Company Limited – situated in Okitipupa Local Government Area of Ondo State with total gross installed capacity of 512.82 MW.
Olotu, who confirmed the development in Lagos over the weekend, said bidders must be experienced power generation companies with proven records of performance.
He said in case of a consortium, at least one of the consortium members must be an experienced power generation company (the "Technical Partner").
The Technical Partner shall be responsible for providing operation, maintenance and management services under a long term agreement.
Olotu said the call for Expression of Interest has already been published while a road show planned to further create awareness on the subject would start in Lagos this week before moving to other parts of the nation and overseas.
He said shortlisted companies would be made known in August while a bidders' conference would be held in September to further intimate bidders on critical issues involved in the privatisation of the firms.
The managing director said the opening of financial bids, negotiations with bidders and signing of transaction of agreements would be completed before handing over in June 2014.
He said the NIPP was conceived in 2004 as a fasttracked government-funded initiative to stabilise Nigeria's electricity supply system while the private-sector led structure of the Electric Power Sector Reform Act (EPSRA) of 2005 took effect.
Olotu remarked that in August 2005, the National Council of State and the National Assembly approved an initial funding of $2.5 billion for NIPP from the "Excess Crude Oil Account" (ECOA) which statutorily belongs to the Federal, state and local governments.
Meanwhile, the Federal Government at the weekend inaugurated 11-man Joint Technical Committee for protection of power infrastructure against vandalism.
The Minister of Power, Prof. Chinedu Nebo, while inaugurating the committee reiterated his ministry's resolve to collaborate with all security agencies and other stakeholders to safeguard power infrastructure throughout the country.
Nebo charged the Nigeria Security and Civil Defence Corps, NSCDC, to help tackle the menace of sabotage of power infrastructures.
The committee is made of five members from the Ministry and five from NSCDC with the representative from the Office of the National Security Adviser, NSA, to the President as Coordinator.
National Mirror
The supplyt of gas is very necessary in this kind of situation so I must commend whoever initiated this. It makes sense.