Abuja — Bauchi State government is dotting the i's and crossing the t's in a bid to purchase a 110 mega watts (MW) power plant from Germany to reduce the burden of lack of electricity in the country.

Chairman, Nigerian Electricity Regulatory Commission (NERC), Ransome Owan, said in Abuja during a visit on him in Abuja by the state governor, Isa Yuguda, who described the plan as part of a fast tracked solution by the state government to find solutions to the perennial power problem in the country.

Owan, advised the state government to firm up the loose ends in the contractual agreement so as to ensure that the life span of the power plant would exceed the debt repayment period.

Yuguda, who was at the Commission's head office in company of his consultant on the project, Stanley Austin Okoya, a German based Nigerian engineer and some senior members of his cabinet, said his government was latching in on the opportunity offered by German decision to sell most of its power plants to solve its acute power shortage problem.

According to him, the German decision to offer the plants for sale and switch over to nuclear power plants was on account of her recent discovery that it was a cheaper and more environment-friendly-technology than other power sources, which had rendered most of its redundant gas thermal plants.

He said that many other countries with energy crisis, including Asian economies, are acquiring some of the abandoned power plants in Germany, adding that the Bauchi state government was seeking NERC's clarification on the viability of such an option.

The governor said he has secured a long-term maintenance agreement with the equipment manufacturer, Alstrom of Germany, and has floated a special purpose vehicle, Yankari Power Company, which would manage the power company.

He said that his administration has convinced the plant owner to give it 24 months moratorium within which to firm up its arrangements and conduct due diligence on the viability of buying the plant.

Already, physical and engineering assessments have been conducted to determine the plants integrity operational integrity and capacity.

The project's consultant explained that the technology has a fuel efficiency component, as it could run on heavy fuels, like low pour fuel oil and Bonny light brand of crude oil among other options.

He said that there would be no problem in supplying the spare parts because agreements have been reached with the manufacturer, and that Nigerians would be trained on how to maintain the equipment.

Earlier, Yuguda explained that his government's plan could take care of the energy need of the adjoining Gombe, Plateau and Borno States and the country at large, if carefully executed.

He said that his government has signed a memorandum of understanding with a Korean company for 70 per cent equity participation in the hydro project for its 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.

Meanwhile, NERC Chairman assured that the Commission was working on a set of incentives that would encourage state governments' participation in the power industry.