Reuben Buhari
5 October 2008
opinion
Lagos — The worsening power situation in Kaduna State is partly responsible for the collapse of over 20 industries and also, rendered thousands redundant. This has compelled the state government to embark on an ambitious generation of about 2,350 megawatts of electricity from solar, gas and hydro powered plants which should yield results before the end of next year.
That a strong correlation exists between adequate power generation and supply, and the size of a country's Gross Domestic Product (GDP) is not contestable. It is also irrefutable that all the leading power producers today are the ones with the largest economy. This means that any nation or state aspiring to have a sound industrialised economy, low unemployment figure and an enhanced welfare system for its citizens, must ensure the presence of a reliable power generation and supply base.
This explains why the Kaduna State government, not impressed with the less than the 100 irregular megawatts it gets from the Power Holding Company of Nigeria (PHCN), and moved by the continued closure of industries in the state, and the need to reduce the poverty rate amongst the citizenry, has commenced the process of generating its own electricity from solar, gas and hydro with billions of naira already committed to the project. The plan for achieving such feats has been divided into what the governor called a short, medium and long term plan. Each plan has its own type of power to produce; the means for producing it, and the time it would take for such power to be made available.
Governor Namadi Sambo, while giving an overview of what the state is actually doing on the issue, said: "We have established an agency for power generation. We have appointed consultants who are now preparing feasibility study for the establishment of small hydro power plants as a long term solution, while arrangements have reached an advanced stage for the provision of a fuel power generating plan as an emergency solution pending the completion of the hydro-plants. The total power expectation from the small power plant is cumulative of about 150mw while the emergency fuel oil power plant shall be between 50 to 100mw to be developed in phases. Fuel is expected to be supplied from the Kaduna Refining and Petrochemical Company (KRPC)," he said adding that the state has already started installing solar in 12 villages with the first in Janwuaria Village in Kajuru local government. He added that provision for N3 billion for generating the electricity has been made in the 2008 budget.
The first act of Sambo towards actualizing his dream was with the N34 billion multipurpose Gurara dam where he revealed that the state has sought the permission of President Yar'Adua to generate 30mw of electricity from there. Sambo, who was visibly impressed with the sheer size of the dam, remarked while being conducted round it by Engr. Markus Gundiri, director, Dams and Reservoir of the Federal Ministry of Agriculture and Water Resources, that the 30mw would be distributed around the state's industrial area. Presently, all logistical requirements toward making the electricity available from Gurara have been done and by next year the electricity should be reaching the state.
The Senior Special Assistant to the governor on hydro power generation and transmission, Engr. Mahmud Abdullahi, who is helping with overseeing the project, further explained to THISDAY that the 30mw from Gurara is part of the state's long term plan, but for the immediate short term plan, Abdullahi said a 50mw gas powered plan will be set up within the next seven months. It also involves the provision of solar energy to 12 villages spread across the state at a cost of N600 million, with one already installed in Janwuria village.
Impressed by the state's effort in the provision of electricity, the minister of State for Energy (power), Mrs. Fatima Ibrahim recently paid a visit to the state where she met with both Sambo and Mr. Felix Hyet, the Minster of State for Transport (airways) and later disclosed that the 50mw gas powered plant will be jointly established as a 60mw by the state and federal government under the short term plan of the state.
Ibrahim, who was accompanied to the state by key officials in her ministry and those of the PHCN explained that after hearing about the state's effort, she decided to come and see for herself and added that the 60mw plant would be powered by LPFO. She and the governor said this after spending more than two hours going round some abandoned facilities in the state that was used for power generation in the fifties.
While commenting on the irregular power supply being experienced by Nigerians, Ibrahim said it was due to the only 3000mw being generated but that it will improve when the supply shoots up to 4000mw before the end of the year. According to her, the electricity supply keep fluctuating because some of the machines have to be stopped periodically for repairs, and that the gas company which supplies gas to the power generating engines sometimes, also complain of lack of gas.
Under the medium term plan, Abdullahi said the state will expand the electricity gotten from the gas powered plan under the short term plan to some local governments like Kachia, Jama'a and others. This, he said, would ensure that the poverty and underdevelopment witnessed in certain rural areas of the state is reversed.
The state is basing so much of its effort and aspiration in the long term plan which includes the project at Gurara Dam started a long time ago. According to Abdullahi: "The long term plan involves hydro and large gas powered plan. The state has commissioned consultants who are working to give it the feasibility design of the whole rivers in Kaduna State. From there the state would choose the ones that are viable for hydro power generation. At present, they have submitted the first preliminary report which shows 10 sites that can be used for power generation which can generate between 10 to 40mw of electricity from each. After concluding their reports, we are sure of having at least six good sites which will be viable and by next year January when we receive the report from them we are going to award contract for the detailed design of the construction of these dams which will take about three months and within the same next year before June, the whole contract for all the dams will be awarded."
The state has even made plans for getting the gas that would run their plans. Mahmud explains that "these machines for generating the power use different types of gas. The types of gas we want to use is the LPFO, normally called black oil. We have discussed with Kaduna Refinery on the possibility of getting this oil regularly and they are ready to supply us because we have told them of the state's preparedness of generating 50mw from gas powered plan. They told us of the total production of LPFO they refine and we realized that we only required 12 percent of their production which they are ready to give us."
He however added that in the instance that the refinery failed to come up with the LPFO, the state is making plan to get it from Warri and Port Harcourt. He further said the state will ensure that it regularly keep in store a two-week supply of the black oil.
But what are the challenges that the state is facing in this particular task? The challenges, according to Abdullahi, are selecting the most competent and qualified personnel or firm to handle the work, the funding for the project and the issue of maintenance.
He said: "the selection of the most competent hands that are capable of handling this project, because power generation has always been handled by the federal government and this issue of Independent Power Production has not been around for a long time. The few ones that tried before did not last long. We in Kaduna are looking for competent partners with whom we will operate together as Public Private Partnership (PPP). The state would have an investment of about 20 per cent with the firm also having about 20 per cent or higher while the rest would be sourced from the banks. We are trying to get the best hand in the area. Those whose work will be of the highest quality and the benefit enjoyed by the state for a long time to come." he said.
On the issue of getting funds for the project, Abdullahi said "the state knew it does not have the type of money to finance such huge project alone because it requires a huge investment. An issue is that the monetary return from this kind of project is slow. It takes years before people who are desirous of reaping profit start getting it. Though almost all the banks are ready to finance the project, but the problem in it is that when they give you a loan they want their money back within two to three years. But this is not what the state want. We want a loan that will be repaid in about twenty to thirty years period. This is why we are trying to bring the banks into the whole issue. When they are directly part of the project, they would not hesitate in giving a longer pay back period.
In the area of maintenance he said: "In the project, there would be an agreement that would spell out the responsibility of all parties. The firm handling the project must be technically sound in also maintaining the plants. Any firm that can't maintain the plant won't be given the job. This is the state's way of ensuring that the power generating plant keep running for the benefit of all for the next hundreds and thousands of years.
When all the different projects are finally completed, the special adviser revealed that the total megawatts accruable to the state are in the region of 2,350mw. "In the short term plan, we expect at least 150mw. In the medium term, we expect an additional 100mw making it 250mw, while in the long term plan, which has to do with all the big gas and hydro power plant, we are expecting to get about 2000mw from gas powered plants and then about 80 to 100mw from the hydro dams."
Sambo had earlier buttressed his attempt at privately generating electricity for his state at the last Northern Governors Technical Forum Committee meeting on the generation of power in northern states where he said that for the country to achieve its power dream, the economy and infrastructure, particularly, electricity supply must attain a minimum growth rate of 13 per cent per annum. He added that energy is the most important variable for measuring economic performance and development and that with just 12 years left before the year 2020, Nigeria need to do more in the area of power generation if its want to be listed among the largest economy in the world.
With so much effort and money already committed to the project by the state, the operators of the typical small and medium scale enterprises who depends so much on constant power supply are anxiously waiting with baited breath and hoping that the governors' attempt, which is seen as a white elephant project by certain skeptics in the state, doesn't turn out to be so.
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