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Tag: NIPPs

  • Why FG is yet to sell off NIPPs, by Ajiboye

    Why FG is yet to sell off NIPPs, by Ajiboye

    …TCN owed N457b of legacy and shortfall

    The federal government is yet to sell off its five National Integrated Power Projects (NIPPs) because of the low prices the bidders are offering.

    The government had in 2023 announced its decision to sell the plants to fund its deficit budget.

    The plants are the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.

    Others include the 563MW Odukpani power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.

    The Transmission Company of Nigeria (TCN), Executive Service Provider (TSP), Executive Director, Engr Oluwagbenga Ajiboye, broke the news during the Three-Day TCN Media Workshop for Energy Correspondents Association in Keffi, Nasarawa State.

    The theme is “Understanding the Critical Role of TCN in Nigerian Electricity Supply Industry (NESI).”

    His words: “We have all known all the GenCos have been privatised except the power stations under NIPP. The government has been going up and down, forward and backwards, either to privatise or sell or not to sell.

    “The Government is willing to sell, but the money being offered is not sufficient to cover the outlay of the investment.”

    He also revealed that the electricity market owed TCN N457 billion as of March 2025.

    According to him, TCN has discovered N217billion of its legacy debt and has opened up discussions with the Ministry of Finance Incorporated (MOFI) for the payment.

    Read Also: Mutfwang urges NIPPS to utilise research for national development

    “The market owes us about N457 billion as of March, being to the market shortfall and legacy debts. We have traced N217b to the legacy debt, and we are in discussion with MOFI to pay us something out of it,” said the Executive Director.

    He said there are 23 power plants with a combined available capacity of 12,000 MW in the industry.

    He revealed that ageing equipment in the industry is accountable for the unavailable capacity across the distribution and generation sub-sectors.

    He, however, said TCN is investing in the open market.

    Oluwagbenga said TCN cannot control what the DisCos described as economic load rejection or dispatch, since the distributors have identified where customers fail to pay for energy.

    He said a grid simulation had revealed the TCN’s capacity to wheel 8701MW to the DisCos, which is grappling with customers’ inability to pay for it.

  • Funding challenges of NIPPs, others

    The Independent Power Projects (IPPs) is 12 years old. The idea was conceived by the Federal Government in 2007 to increase power generation into the national grid. However, the operation of the plants is dogged by problems, such as poor funding, gas shortage and poor regulation, writes AKINOLA AJIBADE.

    When the administration of former President Olusegun Obasanjo launched the Independent Power Projects (IPPs) in 2007, it was to improve power generation across the country. Many Nigerians thought the initiative would help the country achieve its goal of providing stable power supply for its teeming population; more so that the government was working to privatise the sector to make it more efficient.

    Besides, many thought the initiative would help in making power available to the manufacturing sector, thereby revitalising the  economy, which has been in comatose.

    Laudable as the goals are, it has been pretty difficult to grow the sector well and further launch the country on the path of growth, the scheme is yet to achieve its goals. The reason being that many of the independent power projects, embarked upon by either the states government or private institutions were yet to record appreciable progress. While many of the projects were near completion, some have not started at all, due to problems, such as funding and others.

    With the Federal Government issuing licences to 20 firms, which applied to operate as Independent Power Producers in 2011, many have concluded that the government was ready to ensure that the projects record growth.  Not only this, the government directed that a total of 6,258 megawatts (Mw) of electricity be generated to the national grid, while the projects should be sited in 20 out of the 36 states of the federation. Through this, stakeholders, including the government, were expecting the country’s generation to increase from its 5,000 (Mw) of electricity to more than 11,000 (Mw) of electricity.

    Earlier, the government had inaugurated a power plant in Azura, Edo State. Reputed to be the largest IPP in the country, the plant was expected to, ultimately, produce 1,500 Mw of electricity, of which 450Mw would be produced in the first phase of its production.

    Located on 100 hectares in Ihovbor/Odemwende communities, the plant is yet to offer optimal performance, owing to financial problem as investors pulled out of the deal.

    President Muhammadu Buhari’s administration’s decision to breathe life into the project, by signing  a $237milliion guarantees with the World Bank to support it, has yet to produce tangible results. The same fate befell other plants, as they struggle to produce electricity that is enough to support socio-economic developments in the country.

    Funding

    Poor funding is taking its toll on projects in the sector. Both the power distribution companies (DisCos) and the power generation companies (GenCos) are facing similar problems.

    According to the Chief Executive officer, Jehata Nigeria Limited, Jameel Jammal, many of the companies that were given licences by the Federal Government, to operate independent power plants, does not have enough money to operate in the sector.  He told The Nation that funding has paralysed activities of the firms such that they are finding it difficult to procure materials for operation.

    Jammal, whose firm owns Abuja Power Station, said operators were finding it difficult to access funds from local banks, adding that the issue is impacting negatively on their activities.

    He said: ‘’ I can tell you authoritatively that many firms, that got the licence to operate independent power plants do not have the required capital for operation. Though many of the companies were able to acquire land, in which their plants would be cited, funding is taking an unprecedented toll on their activities. Many have applied for loans from local financial institutions, which often times charge them double-digit interest rates, especially from 30 per cent and above. In most cases, independent power producers were seen as short-term facility, which in the long run, would not help their businesses. Foreign banks charge us (operators) small interest on loans, as against Nigerian banks that collect higher interest rates from us. Whenever we get loans from foreign banks, their local counterparts are not usually happy, a development, which has been stifling investments in the sector.”

    Narrating his ordeal further,  Jammal said operators were facing regulatory problems, evident by failure of the government to approve the foreign exchange for equipment import.  ‘’Like in the case of Abuja Power Station, the government has refused to free us ( the company) from some bottlenecks. The firm is seven years old and the government is yet to give approval for the siting of the turbines for modular refinery and the power plant. The turbines for the refineries and the power plant were to be imported from Asian countries, namely China.

    “To bring the equipment, including the expatriates that would fix them to Nigeria, is a problem. These are the problems, which Abuja Power Station and other independent power producers are not only facing, but have prevented them to roll out their operation,’’ Jammel added.

    Gas shortage

    According to the Niger Delta Power Holding Company’s (NDPHC’s) Chief Executive Officer, Mr Chinedu Ugbo, the sector is bedeviled with gas problems, which is having a spiral effects on activities in the industry.

    Ugbo said NDPHC is not free from gas problem, adding that the firm’s capacity to generate 5,000Mw of electricity is being hampered by gas shortage.

    He said the firm has completed Olorunsogo 11 (750Mw), Sapele 450Mw, Geregu 11 (434Mw), Omotosho 11 (450Mw), Ihovbor 450Mw, Alaoji 450Mw, Calabar 563Mw and Gbarain 225Mw. The NDPHC has completed 2,194km of 330KV transmission lines and 809km of 132KV transmission lines; an increase of 46 per cent and 13 per cent over the pre-NIPP status of grid infrastructure.

    Ugbo said despite this feat, the firm is yet to overcome the problem of shortage of gas, adding that the issue is having dire consequences on the operation of operators, especially independent power producers that do not have enough capital to operate with.  He said NIPPs and other operators were also facing right of way (RoW) challenges for distribution equipment and transmission lines, port clearing coordination hitches and performance contractor related problems. He said the equipment imported for the power projects are often delayed or seized at the ports, despite the fact that NIPP was owned by the three tiers of government.

    Ugbo said the recurring snag with power sector  is in  the distribution chain, adding that there is no efficient distribution network which the power producers, especially IPPs can leverage to make power available to the end users.  Another problem with the distribution network, he added,  is poor town and urban planning which has made it difficult to regulate power distribution and downstream activities, thus overloading the grid.

    Manufacturers’ perspective

    The road to efficient power utilisation has not been rosy, as companies had to battle hurdles in the process of achieving that feat. Jammal said his firm has received offers for partnership on the establishment of independent power plants with manufacturers in recent times. The manufacturers, he said, needed such plants in the industrial clusters where they operate, in order to deflate the cost expended on provision on alternative energy such as generators. He said Abuja Distribution Station is studying the issue of forging partnership with the manufacturers, adding that firm needed to evaluate the cost involved before its goes into such relationship.

    Manufacturers Association of Nigeria (MAN) imediate past president Dr Frank Jacobs said members enjoyed an average power supply of seven hours in the first half of 2016, as capacity utilisation fell below 45 per cent. He said the development made the body to opt for an independent power projects.

    He said companies, such as Flour Mills Nigeria Plc, Lafarge Holcim, Tower Aluminium, and Cadbury Nigeria Plc, require huge volume of power, adding that the development informed the decision of the body to liase with gas marketers/suppliers on the issue.

    He said the move by MAN to have its own independent power plants would help in revitalising many industrial clusters across the country, adding that the body has sought the  nod of the Federal Government, Nigerian Electricity Regulatory Commission (NERC) and other stakeholders on the issue.

    According to him, the productive sector remains troubled due to various challenges in the operating environment, adding that the absence of conducive manufacturing environment and basic infrastructure would continue to draw back the sector, except something urgent is done to reverse the situation. Power is a major cost for manufacturers and they will explore opportunities where it is cheaper to produce their goods.

    Also, the Chairman, Manufacturers Power Development Company Limited, a subsidiary of MAN, Ibrahim Usman, said the poor power supply in the country was seriously affecting the manufacturing sector, hence the partnership designed to develop small capacity IPPs in its industrial clusters.

    He said the issue of transporting gas to where it would be needed is a problem, adding that members are working to ensure that they overcome the problem.

    He explained that the project, which is in the pilot phase, is expected  to kick off with an industrial estate within Henry Carr in Ikeja. It  will enable manufacturers to manage their energy generation and consumption as well as strategise for power mix like solar, wind, waste-to-energy and biomass in capacities between five and 15 Mw. Usman, who is also the vice president, Northwest Zone of MAN, said the manufacturers would deploy incremental power generation strategy based on needs assessment in order to ensure that industrial clusters’ power demands are met.

    According to him, the MAN IPP pilot scheme will start in areas, such as Lagos, Ogun and Rivers states where gas is available like. Solar energy would be deployed in the north.

    He said: “There is no one model for all as different states have different needs. Talks are ongoing with strategic partners to deploy liquefied petroleum/natural gas in locations like Abuja, Kano, Ibadan, Enugu and Nnewi. It is going to be a case-by-case model for industrial firms. There are foreign technical partners willing to establish smaller capacity solar farms of five to 10Mw, even as waste energy will not be left out.”

  • Expenditures on NIPPs hit $5b, says NDPHC boss

    Expenditures on NIPPs hit $5b, says NDPHC boss

    The  aggregate expenditure on the National Integrated Power Plants (NIPPs) is now $5billion, the Managing Director, Niger Delta Power Holding Company (NDPHC),James Olotu has  said.

    Olotu, who spoke yesterday through the Associate Head of Generation,  Onuoha Igwe in Abuja during at the opening session of the company’s meeting with electricity generation  companies,   said by the time the conception is  fully on ground, “NDPHC or  NIPPs would have consumed “over $5billion on the aggregate.”

    He said in 2007,  the committee for building medium- sized power plants in the Niger Delta,  was originally funded with $2.5million following the approval of the National Assembly to use the excess crude oil account to fund the projects.

    Olotu said upon the committee’s study, the Federal Government decided that seven power plants should be built as medium-sized power plants in the Niger Delta utilising available gas  close to the plants, adding that the decision  was to transmit the power from the Niger Delta to the central part of the country.

    Olotu explained that it was expected that the grid would be built into the power plants, for the power to reach the beneficiaries, pointing out that the NDPHC owns the distribution component.

    He said as the company is contributing to the development and enlargement of the grid, as a whole, it  is equally building infrastructure on transmission network to close up the loop.

    Olotu said the  transmission system currently in place that is owned by the Transmission Company of Nigeria (TCN) at the 330KV level, ends in Jos and  Enugu , stressing that “the plant in Jos and Enugu is not covered by the 330KV. “

    He however said  by July, the double circuit which is built in Uguaja to loop the gap between Enugu and Jos would have been completed.

    “By the grace of God, between now and July this year, we should have that Eastern plan completed,” he said.

    Olotu, who blamed the recurring power shortage on vandalism of gas pipeline, said: “At any point in this chain, what we have been seeing in the past year or two, is persistent damage on the gas pipelines.

    “The moment those gas pipelines are disrupted, there is nothing to turn the gas to the power plants, and when the gas turbines are not working you cannot have the power,“ he said.

  • ‘Non- completion of Alaoji, others won’t stall privatisation’

    The delay in the completion of Alaoji,Omoku and Gbarain power plants will not affect the sale of the 10 power assets under the NIPP, the  Niger Delta Power Holding Company (NDPHC) that superintends the National Integrated Power Plants (NIPPs), has said.

    The company has completed the construction of Omotoso, Egbema, Ogwode, Olorunsogo, Benin and Calabar, while Alaoji, Omoku, and Gbarain power plants are yet to be completed.

    The Bureau of Public Enterprises (BPE) has said the ongoing privatisation of the NIPP assets is being delayed by the problem of gas that had stalled the signing of the gas purchase agreements that would make the transactions bankable.

    NDPHC’s spokesman, Yakubu Lawal, told The Nation, that shortage of gas is the only problem delaying the privatisation of the plants. He said that non-completion of the three plants by the contractors has no basis with the sale of the 10 plants from which the government is targeting 5,000 megawatts (MW) to achieve its aspiration to generate 10,000MW.

    Lawal said that due diligence has been conducted by the companies that bought the plants, adding that the transactions was done in a transparent manner. He said: “There was a shares agreement between the companies and the government before transactions on the plants started. The buyers have carried out due diligence and know the state of the plants. It is not compulsory that the plants must be completed before the plants are sold.”

    He said the NDPHC has done a lot to make the plants look better, strong and effective, adding that the plants would improve power supply when they are privatised.

    The BPE’s Director General, Benjamen Dikki, said the country has a capacity for 11,000 megawatts, adding that power supply would improve when the infrastructure problems in the sector are solved.  Dikki said the combination of adequate gas supply to thermal and hydro-power plants would help in improving electricity supply.

  • BPE, bidders meet on assets sales

    BPE, bidders meet on assets sales

    The Bureau of Public Enterprise (BPE) has met with the preferred bidders for seven of the 10 National Independent Power Plants (NIPPs) to ensure  a smooth exercise,  its Director-General, Benjamin Dikki, has said.

    He said the Abuja meeting became imperative for BPE and the investors to look at issues vital to the plants’ sale.

    The issues were  shares purchase agreement (SPA), performance agreement and shareholders agreement, among others.

    The forum, Dikki said, was also an opportunity for BPE and the firms to look at the terms   governing sale and purchase of the plants.

    The National Council on Privatisation (NCP)  chaired by Vice President Namadi Sambo, approved the sale of the seven plants, following successful financial bids opening last March.

    At the meeting were EMA Consortium which is hiding for (Benin Generation Company and Calabar Generation Company), Dozzy Integrated Power (Egbema Power Generation Company),  Seoul Electric Power Limited (Geregu Generation Company), ENL Consortium Limited (Olorunsogo Generation Company), and Omotoso Electric Power (Omotoso Power Generation Company).

    Alaoji, Omoku  and Gbarain  power plants’ prospective buyers were not represented at the meeting because of of litigation.

    Dikki said the court has restrained the government from selling the three plants.

    According to him, the sale of the 10 plants is on course,  adding that no problem would be  allowed to hinder the privatisation.

    Dikki said: “The government has slated 10 power plants for privatisation, but a company went to court to stop the sale of three of the plants. The government believes in the rule of law and has gone to court to reverse the injunction in order to privatise the plants soon.

    “The seven firms have submitted the preferred bidders guaranteed forms. Based on this, they are qualified to discuss the sales’ document with BPE. The document contains the Shares Purchase Agreement, the Performance Agreement and the Shareholders Agreement, which have been discussed at the meeting. The meeting was called to negotiate and agree on the document.

    “Once agreement is reached on the document, it would be executed. From the day of execution, the preferred bidders are obligated to pay 25 per cent of the bids’ price within a particular period of time. Thereafter, they would be given six months to pay the balance.  They have the option to pay early and take over the plants. That is where we are on the privatisation of the plants.”

    The spokesman of NDPHC, Yakubu Lawal, said he was aware that BPE and the seven preferred bidders had a meeting. He said the meeting was organised to finalise the sales and purchase deal.

    He said: “The meeting was organised to examine issues relating to Shares Purchase Agreement, Shareholders Agreement and others that need to be signed in order to achieve the privatisation goals. I think the two parties need to go through the agreements to arrive at a consensus on the issue of selling the plants.”

    The 10 midsized power plants built under the NIPP Plants, which are supervised by the Niger Delta Power Holding Company (NPHDC) are expected to generate combined 5,000 megawatts (MW) of electricity.

  • NCP to open bids for 10 power plants Friday

    NCP to open bids for 10 power plants Friday

    The National Council on Privatisation (NCP) and the governing board of the Niger Delta Power Holding Company (NDPHC) have approved the opening of the financial bids of the 42 pre-qualified bidders for the 80 per cent equity in the 10 National Integrated Power Projects (NIPPs).

    The joint meeting in Abuja that was chaired by Vice President Mohammed Namadi Sambo that gave the nod, also directed that bids be opened on Friday this week, in keeping with the published timeline for the transaction.

    According to a statement by the Bureau of Public Enterprises (BPE), the 42 bidders emerged out of the 66 bidding consortia, adding that they have been prequalified because they met the criteria set in the requests for proposal (RFP) and passed the due diligence verification conducted on technically qualified bidders.

    Vice President Sambo commended the Joint Technical Transaction Committee (JTTC) chaired by Governor of Benue State, Mr. Gabriel Suswan, noting that the transaction, “was a highly transparent process and government had assured investors participating in the NIPP transaction that the same level of transparency will be replicated.” The JTTC is made up of the Technical Committee of NCP and Technical Committee of NDPHC.

    The NIPP privatisation is a joint transaction between the NCP and the Governing Board of NDPHC. The 10 plants are jointly owned by the three tiers of government; local, state and Federal Governments with the Federal Government contributing 47 per cent equity stake and the local and state governments with the remaining 53 per cent equity.

    The Vice President further said the privatisation of the 10 NIPPs marks the first time the private sector, National Assembly, federal, state and local governments are joining forces to ensure an all inclusive transaction process, following a highly successful investors’ fora spanning five countries

    He said all the three tiers of government and the private sector in Nigeria were collaborating in the privatisation process of the power plants which is being jointly offered for sale by the BPE and NDPHC to ensure that the same level of transparency acclaimed the world over in the PHCN transaction was replicated in the NIPP transaction process.

    According to him, if Nigeria was going to be among the 20 largest economies in the world by the year 2020, the right steps must be taken, adding that the administration of President Goodluck Jonathan is committed to ensuring that the right steps are taken in implementing the Transformation Agenda.

  • Ecobank eyes $5b yearly power sector financing

    Ecobank eyes $5b yearly power sector financing

    Ecobank Nigeria has projected power sector funding of at least $5 billion annually over the next five years.

    In a statement made available to The Nation, the lender said the investment is in line with its policy to support the development of the power sector in Nigeria. It said the fund is part of its contribution to the sector’s transformation, initiated by the Federal Government through its privatisation programme.

    The lender said it has played a major role on the buy-side of the power sector privatisation exercise by providing financial advisory services, lead arranger role, acquisitioning financing and guarantees to distribution companies (DISCOs) , generating companies (GENCOS) and National Integrated Power Plants (NIPPs).

    Ecobank Country Head, Power & Energy, Olufunke Jones said the bank’s objective is focused on playing actively at all levels of the sector’s privatisation, which includes generation, transmission and distribution.

    She said:”Nigeria has one of the largest gaps between demand and supply for electricity. To bridge this gap the country requires a combination of favorable government policies, private sector participation and foreign direct investment (FDI) as well as transparency and persistent monitoring that will guarantee an improved business environment.”

    According to her, the current power reforms have created opportunities for capital expenditure (CAPEX) and operating expenditure (OPEX) funding, which is a consequence of the handover to the new owners. She said:“There is the urgent need to rehabilitate the distribution networks in order to make them robust and flexible enough to accommodate the nation’s demand for power.”

    Also commenting, Local Account Manager, Corporate Banking Group, Mrs. Funmilola Ogunmekan said unlike the telecoms industry where new investors were able to take advantage of new technologies to redefine industry norms, the power sector is faced with the challenges of upgrading mostly obsolete equipment and processing under a traditional technology framework. This, amongst others, are the immediate challenges that should be addressed before the potentials of the industry are fully manifested.

    Ogunmekan reiterated that this year, the lender will leverage its position as a bank with the third largest branch network to provide effective utility collections and cash management services while providing the required additional CAPEX/OPEX funding for at least five of the distribution companies across the country.

  • CP warns officers against corruption

    Kano State Commissioner of Police Adenrele Tasheed Shinaba, who resumed in the state yesterday, warned officers and men to shun corruption, harassment and torture.

    Shinaba urged them to dedicate themselves to their duties, saying: ‘’Let me warn you against corruption, torture and human rights violation.”

    The commissioner said his doors are open for complaints, information and objective criticism.

    He enjoined stakeholders to make Kano a secure and habitable state.

    Shinaba was born in 1957 in Lagos State and served as commissioner of police, counter-terrorism unit in Adamawa and FCT Command. He is an alumnus of the National Institute of Policy and Strategic Studies (NIPPS).

     

  • ‘Why NIPPs experience slow growth’

    Delays in securing approval from relevant authorities by contractors is affecting the growth of the National Independent Power Plants (NIPPs), the Chairman, Electric Power Foundation, Otis Anyaeji, has said.

    Anyaeji, in a paper titled: ‘Nigeria’s Power Sector: Contractors’ Expectations,’ and delivered during a stakeholders’ programme in Lagos, said the problems made the plants to generate less than 2,000 megawatts (MW) in eight years. He said the development informed the government’s plan to privatise the plants next year.

    He said some communities are hostile to contractors handling the power projects, following the failure of government to compensate them for using their lands. Others, he said, include delays in getting letter of credits from banks, clearing power equipment at the ports, and hostile treatment meted to contractors working on NIPPs’ sites.

    He said: ‘’ Delays in paying compensation to communities for acquiring their land, or getting Right of Way have affected the implementation of NIPPs. Many communities, after collecting compensation, continue to build new structures on the Right of Way.

    He said often times, the communities mobilise against the contractors demanding for money. A recent case in point is the Jos-Makurdi Transmission Line where armed personnel had to be deployed before contractors could work.’’

    Anyaeji said contractors’ inability to get letters of credit from banks as at when due have affected the execution of the projects.

    ‘’ When a letter of credit is to be issued, bank (locally or foreign) must alert the Central Bank of Nigeria (CBN) and the relevant contractor on the issue. The CBN must then officially communicate same to the Niger Delta Power Holding Company of Nigeria(NDPHC) without which the process of effecting correction in the Letter of Credits cannot start.

    “Long delays are usually experienced before the final notification is received by NDPHC. It is either a Director that would sign the document is out of the country, or other reasons are given.’’ he added.

    Speaking on the issue, the Niger Delta Power Holding Company (NDPHC) Spokesman, Yakubu Lawal, said the power stations are not facing serious problems. Lawal said the government has been trying its best to ensure that the plants achieve their goals of boosting power supply in Nigeria.

    He said: ‘’ There are no significant challenges currently hindering our operation. What we experience is a little problem that is being handled administratively within our organisation and other inter government agencies. NIPP projects in generation, transmission and distribution have progressed significantly with current contribution to national grid put at about 2000megawatts subject to availability of gas to fire the plants.

    He said many of the company’s transmission and distribution projects have been completed , adding that five out of the ten power stations have been fully completed with President Dr.Goodluck Jonathan commissioning two in October 2013.

    The plants, he said, include Geregu II power station (434MW) in Kogi state and Omotosho II (500MW) in Ondo State respectively.

    He said the privatization of the 10 power stations would be completed by mid 2014, adding that the money realised from the exercise will be used the for second phase of the NIPP scheme. Lawal said the scheme will center on construction of more hydro power stations and transmission infrastructure to expand their capacities and serve Nigerians better on completion.

     

  • NIPPs target 4,147mw generation by year end

    NIPPs target 4,147mw generation by year end

    The National Integrated Power Projects (NIPPs), supervised by the Niger Delta Power Holding Company (NDPHC), are expected to generate a combined 4,147 megawatts (MW) of electricity by December this year, it was learnt.

    The NIPPs comprise 10 medium size power plants spread across the Niger Delta planned to use stranded natural gas in the oil producing region.

    According to data from the power sector, the 10 power stations given adequate gas supply would generate 4,147MW but the data showed that with the gas supply and that expected from ongoing gas pipeline projects expected to be completed within the third quarter, at least 2,903MW of power is guaranteed by end of the year. Specifically, it was gathered that from October this year, supply from the NIPP plants would hit 2,903MW.

    The Alaoji power plant, the biggest of the NIPP plants with installed capacity of over 1000mw being built by Rockson Engineering, is expected to generate 450mw by end of this year but as at December last year, it wasn’t operational as a result of lack of gas supply.

    The Olorunsogo power plant, being constructed by Chinese Sepco 111, is expected to generate 675mw at the end of the year as against 563mw planned by end of last year while Sapele, being handled by Marubeni, is expected to generate 450mw as against 225 by December last year.

    The Ihovbor power plant also being built by Marubeni, which generates zero power, is expected to be wheeling 450mw to the national grid by December this year and 450mw from Calabar power plant by December 2013 as against current zero generation.

    The Gbarain power plant, being handled by Rockson Engineering, is expected to generate 225mw by end of the year. The plant is not generating any power. Egbema and Omoku power plants, which also are being handled by Rockson Engineering, are expected to be generating 338mw and 225mw by the end of the year. The two plants are not generating as a result of lack of gas supply.

    Geregu Power Plant Phase Two and Omotosho Power Phase Two are planned to generate 434mw 450mw by the end of the year but they have capacity to generate about 145mw and 338mw. The power plants are being built by Siemens and Chinese CMEC.

    The Managing Director and Chief Executive of the Niger Delta Power Holding Company, Mr James Abiodun Olotu, last year said the NIPPs had the capacity to generate 1,025MW out of which Olorunsogo Phase Two and Sapele were ready to deliver 650MW and 250MW to the national grid. He, however, noted that the delivery of the 1,025MW into the grid would be dependent on the availability of gas.

    But he said the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), International Oil Companies (IOCs) and the Nigeria Gas Company (NGC), were making efforts to bridge the gas gap.