By ABAH ADAH, Abuja
The Hon. Minister of Power, Works and Housing, Babatunde Fashola, SAN, recently superintended over the signing of a Public Private Power Purchase Agreement (PPPA) by Kingline Power Nigeria Ltd and Ondo State Government for the construction of a 550 mega watts power plant in that state.
In his remark, the minister thanked Kingline, the Nigerian Bulk Electricity Trading Plc (NBET) and other actors in the process of negotiations and approval, noting that the event shows that more power is coming on the grid.
Fashola who commended the Ondo State Government in particular, said, “The fact that it is a local investment by the Ondo State Government confirms clearly that a state can do such a project. There are no legislations barring them, except the regulatory guidelines which they must comply with. Azura followed this same process and is expected to come on stream in a few months time; so also Kingline is expected to do same.”
Speaking earlier, the manging Director (MD) of NBET, Dr Marilyn Amobi who commended the minister and the presidency for their cooperation during the processing stage that has culminated in the signing of the agreement said the move is part of government’s effort towards achieving the incremental power target.
Cautioning against delay in project execution, Dr Amobi said, “One important thing each time we have event like this is we are able to reflect on the lessons we have learnt; how far we can refine or streamline our processes to meet the executive order of the government with regards to minimizing the time it takes to do business in Nigeria.”
The MD/CEO of Kingline, Sean Kim while speaking said the 550mw project is to be executed at an estimated cost of $500 million, adding that out of that, his company has secured $150 million loan and is looking forward to source the remaining $350m.