The quest to increase power generation in Nigeria got a boost recently with the performance of ground-breaking ceremony for the construction of 150 megawatts power plant by Proton Energy Limited, in Sapele, Delta State.
The $250 million gas-fired power plant is the brain-child of Proton Delta Sunrise Project (DSP), a private investor in the power sector.
When completed by 2020, the project will address the perennial power challenge in the country.
Source: NERC; BusinessDay Analysis
In his welcome address, Oti Ikomi, the Executive Vice-Chairman of the Company, said the $250 million foreign direct investment (FDI) would enhance industrialization, business and job growth in the country, Delta state and Sapele community in particular.
“This project will be attracting close to US$250 of Foreign Direct Investment (FDI) into Nigeria, assisting industrialization, business and job growth in the country, in Delta State and in particular here in Sapele where up to 1000 jobs will be utilized during construction”, he said.
Ikomi said the target of the project was to contribute to the national transformation agenda by adding 2000 megawatts over the next five to eight years.
He added that 1000 jobs will be generated during the two-year period of construction of the power plant.
He explained that 150 megawatts of gas-fired power plant would be constructed in the first phase and upgraded to 500megawatts in the second phase
He said the need to establish the power plant was based on the collective desire of the management of the company to make a meaningful contribution to the development of the country and the realization of the need for sustained private sector led Independent Power Plant (IPP) development for the country to make meaningful impact on the energy deficit.
He noted that the country’s full potential would be unlocked if Nigerians are able to address its power sector challenges.
While noting that diversification of the economy will be a pipe dream without new and diverse power supply sources, he opined that Nigeria is endowed with considerable energy sources and should enjoy a competitive advantage in low cost and reliable energy generation.
Ikomi however noted that to sustain the electricity supply industry in Nigeria, the National Electricity Regulatory Commission (NERC) must review electricity tariff for a sustainable, long term industry with acceptable prices to consumers and industry.
He also urged policy review by the Ministry of Power and Nigerian Bulk Electricity Trading (NBET) to re-energize power sector investments, with a specific bias for action and project implementation.
In his remarks, the Delta State Governor, Ifeanyi Okowa stressed the need for international oil companies (OICs to relocate the headquarters to their areas of operation in the Niger Delta.
Okowa noted that the onus was on the Federal Government to pressurize the IOCs to comply.
He opined that more megacities could evolve in the oil producing states of the Niger Delta region, which would substantially take the social and environmental burden from Lagos and Abuja if the multinational oil companies relocated to places like Warri or Yenagoa.
He commended the Proton Energy company for the Sapele power plant initiative, noting that an additional 150MW of electricity was a welcome development in Nigeria as “our generational capacity is still very low” despite visible efforts to step up generation through several IPP projects springing up across the country.
On his part, Felix Mujakperuo, the Orodje of Okpe Kingdom, noted that a third power plant was in the process of being established in Sapele was an eloquent testimony to the peaceful nature of Okpe as a people.
The traditional ruler, however urged the firms in the area to reciprocate his people gesture of love and peace by engaging qualified members of the local population.
“I want to urge all oil producing companies in region to abide by the provisions of the Local (Nigerian) Act which specifies that 100 percent of unskilled labour and 60 percent skilled labour should be from the locality where an industry or firm is located”, he said.
He however lamented the poor electricity supply in Sapele and other area within the kingdom and urged the Benin Electricity Distribution Company (BEDC) to improve its distribution mechanism to address the problem.
He also advised a couple of families who reportedly had legal issues over the land where the plant is situated to withdraw such cases from court and give Porto Energy uninterrupted access to the site.
IDRIS UMAR MOMOH, BENIN
