Jonathan Begins Accelerated Inauguration of NIPP Plants Nationwide
President Goodluck Jonathan Thursday inaugurated the 434 megawatts (MW) capacity Geregu power plant constructed under the National Integrated Power Projects (NIPP) framework.
Jonathan also leveraged on the occasion to announce that he would in the next couple of months continue an accelerated inauguration of various power projects under the NIPP framework, saying he expects that about 5,000MW of power would be added to the national grid within the period through the NIPPs.
He said while inaugurating the simple-cycle mode 434MW Geregu-2 power plant constructed by Messrs Siemens AG and Siemens Limited Nigeria located in Geregu, Ajaokuta Local Government Area of Kogi State that the months ahead would see him inaugurate projects constructed under the framework in furtherance of the government's power sector reform programme.
'This is part of my administration's continued effort to provide regular electricity to Nigeria's teeming population. Within the months ahead, I will be inaugurating a number of other equally completed NIPP power plants which will add close to 5000MW to our generation capacity. “Today's event goes beyond the symbolic inauguration of the power plant but shows our strong commitment and systematic practical implementation and integrated vision in the power sector,' he said, in his remarks shortly before opening the plant.
Jonathan further noted that: 'It is particularly gratifying, especially against the backdrop with the fact that the NIPP was stalled for about two years following the dispute between the federal government and Revenue Mobilisation and Fiscal Responsibilities Commission (RMFRC) over deductions from the excess crude account.
“NIPP at a point was comatose. What we are witnessing today is the culmination of the painstaking work that was put in the actualisation of the objectives of this power sector reform project.'
Jonathan also highlighted some of the challenges encountered at the resumption of works on the NIPPs, saying: 'In 2006, the chairman of the Revenue Allocation and Fiscal Responsibilities Commission took government to court over these deductions and as a result the projects were stalled and there were no deductions until in 2007 when as the Vice-President, the late President Umaru Musa Yar'Adua asked me to discuss with the governors and find out the way forward for the NIPP.'
He stated that his administration had shown commitment to the growth of the nation’s power sector by opening up the sector to private sector operators, adding that the scheduled privatisation of the 10 NIPP power plants will add to strengthen government's plans for the sector.
The governors of Kogi and Benue States, Idris Wada and Gabriel Suswam, were present at the inauguration alongside top government functionaries and traditional rulers including the Ministers of Power, Prof. Chinedu Nebo, Petroleum Resources, Mrs. Diezani Alison-Madueke, Attorney General of the Federation (AGF), Adoke Bello and Minister of State for Finance, Dr. Lawan Ngama.
Others include, the Attah of Igala, Agaba Idu Michael Idakwo Ameoboni, former Minister of Information, Prof. Jerry Gana, Deputy Governor of Kogi State, Yomi Awoniyi and the Managing Director of the Niger Delta Power Holding Company (NDPHC) Limited, Mr. James Olotu, amongst others.
However, NDPHC Limited which oversees the construction of projects under the NIPP framework, contract for the construction of the new plant was executed with Siemens in April 2010 as the last of the power plants to be contracted.
The company also indicated that Siemens had constructed and delivered the project within scheduled project timeframe and budget, adding that no extra budgetary request or extension in project timeline was asked by Siemens in the process. As expected, the president's visit to Geregu attracted tight security arrangements with reinforcements coming from neighbouring Kwara, Benue State and Abuja to compliment security personnel from Kogi State.
Meanwhile, Gana on the sidelines of the inauguration, stated that the exercise represented a milestone in the power sector, adding that President Jonathan's major intervention efforts in bridging the gap in power sector infrastructure was beginning to yield the desired results.
The inaugurated power plant consists of three Siemens SGT5-2000E gas turbines, which are said to be ideal for the Nigerian power market considering that over 500 of its class are in operation worldwide with an 16 million hours already clocked up as evidence of its reliability.
The station has a switchyard to evacuate outputs to the national grid at 330kv through the existing switchyard of the 414MW privatised Power Holding Company of Nigeria (PHCN) Geregu Phase-1 power station and Ajaokuta 330/132kV transmission substation.