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FG new deal with World Bank, others to add 500mw to national grid

FG new deal with World Bank, others to add 500mw to national grid

In its efforts to increase power supply in the country, the Federal Government on Thursday signed agreements that will add more than 500 megawatt to the national grid.

The agreements were signed by the FG, World Bank, Niger Delta Power Holding Company (NDPHC), Nigerian Bulk Electricity Trading (NBET) and Seven Energy, which is an integrated gas company in Nigeria, which is also investing about $500 million in the construction of gas processing facility at the Uquo Field in Akwa Ibom State.

Among the agreements signed was a Partial Risk Guarantee (PRG) between NDPHC and the World Bank which will secure the supply of about 130 million cubic feet per day of gas to NIPP Calabar Plant by Seven Energy.

Also signed was a Gas Supply Agreement between NDPHC and Seven Energy with legal obligations on the gas supplier to deliver gas to the power plant in Calabar. The agreement is expected to come into force within 90 days.

This was contained in a statement made available to newsmen by Senior Special Assistant on Media and Publicity Office of the Vice President, Laolu Akande.

According to the statement, the Vice President, Professor Yemi Osinbajo, speaking at the signing ceremony described the agreements as significant.

The statement quoted Osinbajo to have said, “It will encourage investment in the gas infrastructure and we are certainly looking forward to the multiplier effects that will come from this. This is a very significant event for us and as we all know this is the first PRG for gas that we are signing.

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“Given the current power situation, we expect that this gas that will go into the Calabar plant will provide about 500mw of power which is very significant given our current situation. The gas pipeline itself is a feat of some sort, I am told that it traverses five rivers, so that by itself is worth celebrating. Even if all we get from social media this evening is an engineering feat, we will be quite pleased with that.’’

While the Minister of Finance, Mrs. Kemi Adeosun, signed for the FG at the event held at the Presidential Villa, the World Bank was represented by its Country Director Rachid Benmessaoud.

The Managing Director of the Niger Delta Power Holding Company (NDPHC), Mr Chiedu Ugbo, said he was optimistic the development was significant in the development of Nigeria’s gas to power programme.

Also speaking at the event, the CEO of Seven Energy, Mr Philip Iheanacho, said that the signing of the agreement was very significant because “it is the first gas to power guarantee that the World Bank has provided for, encouraging investment in the gas sector in Nigeria.’’
By Ebere Ndukwu …

 

 

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