Abuja — An agreement has been signed between the Federal Capital Territory Administration (FCTA) and Karkara Rapid Development Limited (KRD) for the establishment of the Abuja waste-to energy facility yesterday.

The FCT minister, represented by the Director, Abuja Environmental Protection Board, Engr. Abubakar Yabo, said that on September 9th, 2009 an MOU was signed between the FCTA through AEPB, Abuja Investment Company Limited (AICL) withKRD, a holding company of consortium of two investor- companies based in the USA, on this project.

The minister stated that with this project, a minimum of 120megawatts of electricity is expected to be generated from waste through the 4 plans of 30 megawatts each that will be installed at Goza waste dump site in the FCT using a gasification process.

Other bye-products from the facility will include NPK grade fertilizer, non-inflammable aviation oil, and carbon black for road construction works and water for irrigation for all season farming.

The total cost of the plant, he said, is 68 billion naira. The KRD shall source for the fund in form of an interest free loan from their foreign financier, Euro Asian group of companies based in the USA to the tune of 420 million US Dollars and shall be payable in 5years.

The FCTA shall have 20% equity constructions in the project which shall be in the form of provision of 120 acres of land and relevant infrastructures.

The turnkey project which is a PPP arrangement in the form of build, operate and transfer(BOT) shall be commissioned within a minimum of 9 months and a maximum of 12 months from the of date of draw down of the foreign loan and shall be transferred to the FCT after 10 years from the date of commissioning.

Chairman Karkara Rapid Development Ltd, Amb. (Dr) M.S. Umoru, at the occasion, said that as of now, there is an estimated 3.3million metric tons of waste in dump sites in Abuja.