Egbin Power plc has completed plans to expand its installed capacity to 2670 megawatts from 1320 megawatts and create an industrial hub with the aim of making the area a confluence of industrial activities for investors that plan to site industries and require an uninterrupted power supply.
It will cost about $103 million to complete the expansion programme of the plant, according to the management.
The company, which says it is working on additional 1,350mw to meet this target, however complained that it was facing some constraints because of the N39 billion debt burden owed it by the Federal Government.
The expansion programme, which is expected to be completed by 2019, would engender a lot of economic interest, as it would help to improve power supply in the country and create job opportunities.
Already, the feasibility and viability studies of the expansion project have been done, so also the Environmental Impact Assessment (EIA), Front End Engineering (FEED) Equipment, Procurement and Construction (EPC) contract have been finalised.
The plant currently has capacity to generate 1320mw but it generate about 1,100mw to the national grid because of technical constraints, especially gas supply.
Kola Adesina, chairman, Egbin Plant plc, who disclosed this while reviewing the efforts made by the core investors to turned around the plant in the last two years, also said it had been the plan of the investors to turn around Egbin, located at Ikorodu in Lagos, into an industrial hub by making the place an Export Processing Zone (EPZ) for easy economic activities.
He said the huge the debt profile was equally creating some bottleneck in the company’s planned capacity expansion initiative. Just as he said that the non-activation of Power Purchase Agreement (PPA) by government was also posing operational challenges in the system.
According to him, about $103 million will be spent on the proposed expansion programme of the plant.
The chairman said the 1320mw Egbin plant prior to its privatisation was in deplorable state, generating about 500mw.
“The plant before then did not undergo any major overhaul, the 6 units were not functional and in particular unit 6 was not working for 10 years. But to date, we have rehabilitated all units and currently generating 1,100mw,’’ he said.
The plant now have in place new distribution control system of global standard, fire alarm detection system that was not in place earlier and have installed gas meter system to capture quantum of gas received, he said.
He lamented the attitude of Nigerians that do not want to pay for the services rendered by the power plants.
According to him, no matter how keen you desire to transform your nation or patriotic zeal, the necessary impetus is lost when you don’t get paid for services rendered.
Olusola Bello
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