Luka Binniyat
13 October 2008
Abuja — The Governor of Bauchi State, Alh. Yisa Yuguda has announced plans by his state to acquire three refurbished power plants from Alstrom Power Service, Berlin, Germany that will generate 110Megawaat (Mw) of electricity for the state.
The power plants that run on crude oil, Low Pour Fuel Oil (LPFO) and gas, said to be in high demand by the Chinese and Indians, is estimated to gulp between $12 and $15 million.
This was made known when Yuguda paid a working visit to the Chairman of Nigerian Electricity Regulatory Commission (NERC) Dr. Ramsome Owan in his office in Abuja.
The Governor said that the projects will be financed by loans from banks, and as such would want the deal to be tight.
He said that his government has convinced Alstrom Power Service to give it a 24 months moratorium within which it would fine-tune its own end and conduct due diligence on the viability of buying the plant. Already, physical and engineering assessments have been conducted to determine the plants integrity
Yuguda said he had come to inform the NERC boss of the intention of the state so as to get more professional advise and to seek for a license as an Independent Power Producer (IPP).
Yuguda also wanted to know if the Federal Government would also allow some form of subsidy on the crude oil and LPFO to be used in the plant as enjoyed by IPPs using gas.
Yuguda was in company of some of his Commissioners and one Mr. Stanley Austin Okoya, a German-based Nigerian engineer who is the consultant to the project.
Yuguda lamented that Bauchi State only gets 4Mw of electrify from the national grid, and wondered how the state will ever attain industrialisation at that rate.
He also told the Commission that Bauchi State's Yankari Electricity and Gas Company has signed a Memorandum of Understanding with a Korean company for 70% equity participation in a hydro project under a long term plan, while a United States firm has indicated interest to take up part of the remaining 30 per cent equity, thereby reducing equity financing burden on the state government.
According to the Governor, hydro power dam will also see to the irrigation of about 20,000 hectares of land and create jobs for about 500 people.
In his response, the Chairman of NERC informed the governor that, "The price of darkness is too high compared to the cost of light."
He said he was elated by the determination of the governor and his meticulous handling of the deal.
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