FG to Complete Four NIPP Power Stations by End of 2018

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Resumes talks with bidders on sale of three plants
Ejiofor Alike
The remaining four power stations being built under the National Integrated Power Project (NIPP) will be completed by the end of 2018, a source at the Niger Delta Power Holding Company (NDPHC) told THISDAY at the weekend.

The federal government has also resumed talks with the preferred bidders for the privatisation of three stations, which was stalled in 2014 following the non-bankability of the power sector, among other market risks.

THISDAY gathered that the 750-megawatt capacity Alaoji Power Station in Abia State, 225-megawatt capacity Omoku Power Plant in Rivers, 338-megawatt capacity Egbema Power Station in Imo State and the 225-megawatt-capacity Gbarain Ubie Power Station in Bayelsa State, which are at various stages of completion, would be completed by the end of 2018.

A source at the NDPHC told THISDAY that all the four power stations, which are being constructed by Rockson Engineering, would be completed in the first, third and fourth quarters of 2018.

Some units of the four stations have been completed while work has been ongoing in the remaining units.
“Since March 2015, all the gas units in Alaoji – 450 megawatts have been running. But the steam units to complete the generating capacity to 750 megawatts have not been completed. It will be completed in first quarter of 2018. Gbarain will be completed this year, while Omoku will be completed in the third quarter of 2018,” he explained.

The NIPP Scheme, which was originally designed in 2005 to build seven-medium sized power stations in the Niger Delta, was later expanded to include additional three power stations in the 676MW-capacity Olosunsogo II Power Plant built in Olorunsogo in Ogun State by SEPCO III Electric Power Construction Corporation of China; the 451MW-capacity Omotosho II Power Plant built by China Machinery Engineering Corporation (CMEC) in Okitipupa Local Government Area of Ondo State and the 434MW capacity Geregu II Power Station built in Ajaokuta, Kogi State by Siemens Nigeria Limited, which have all been completed.

The remaining three completed stations include: the 451MW – capacity Ihovbor Power Plant built by Maurbeni Engineering West Africa Limited in Benin, Edo State; the 561MW-capacity Calabar Power plant at Ikot Nyong, near Calabar, also built by Maurbeni Engineering; and the 451MW-capacity Sapele II Power Plant built also by Maurbeni in Ogorode, Sapele in Delta State.

THISDAY also gathered that following the resolution of the transmission challenges and gas supply issues that stalled the privatisation of some of the 10 power stations since 2014, the federal government has resumed talks with the preferred bidders for the sale of three plants.

However, the sale of some of the plants was stalled by litigations.
The three stations, which are free from litigation and are ready for privatisation include Calabar, Geregu and Omotosho plants.

Though the electricity market is still not yet bankable, the other issues that stalled the privatization of these plants have largely been resolved.

For instance, Calabar plant had no evacuation facilities, but with the completion of the Ikot-Ekpene switching station and the transmission line to Calabar and the transmission line to Alaoji, the power can be sent to Ikot Ekpene and then to Ugwuaji, where it is transmitted to National Grid.

It was also gathered that the gas supply agreement is being finalised for Geregu, while that of Omotosho is being worked out.

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