…As gov. performs groundbreaking of Oyo Independent Power Project
Oyo State Governor, ‘Seyi Makinde, has declared that his administration will continue to lead the charge in finding solutions to energy crisis in the state and Nigeria as a whole. Makinde, who spoke at the turning of the sod on the State’s Independent Power Project, at the secretariat, Agodi, Ibadan expressed the confidence that the state would continue to lead the charge for solutions to the energy and electricity challenges confronting the State and the nation.
While speaking at the ground-breaking ceremony for an 11 megawatts gas and solar hybrid plant, held at the Power House Building, Secretariat, Ibadan, Makinde assured that soon, residents of the state would enjoy constant electricity supply.
A statement by the Chief Press Secretary to the governor, Mr. Taiwo Adisa, quoted him as saying that the independent power project, awarded at the cost of Eight Billion, Twenty Seven Million, Four Hundred and Thirty Thousand, Two Hundred and Fourteen Naira (N8,027,430,214), will serve the state secretariat and selected government institutions, including hospitals, courts, schools and the Light-Up Oyo project, among others.
Governor Makinde explained that as captured in his roadmap for accelerated development, his administration remained committed to providing energy security for residents of the state.
He stated that the IPP project would capture the legislative complex, judicial complex at Iyaganku, some state hospitals and schools as well as 10 kilometre radius of public lightning.
The governor maintained that the project cost would be repaid over a period of 10 years following a build, operate and transfer arrangement with the contractor.
He equally noted that the project would increase productivity in governance and positively impact the state’s economy.
He said: “We are here for one solution to a perennial problem – for the groundbreaking ceremony of the Oyo State Independent Power Project.
“Before I go into the details of this project, it is important to clarify issues related to power distribution in Nigeria.
“Some have stated that only the Federal Government has the power to distribute energy. So any power generated at the state or local level must be fed to the national grid before it can be distributed. This is only partly true.
“Under the Electric Power Sector Reform Act (EPSR), 2005, independent power distribution is allowed. Regarding “Distribution Licenses,” Section 67(1) states that “Subject to such terms and conditions as the Commission may fix in the licence, a distribution license will authorize the licensee to construct, operate and maintain a distribution system and facilities.
“Based on this, the Oyo State Government is entering into a contract with Elektron Energy to finance and develop an 11MW hybrid power solution for the Oyo State Government and some of its facilities within the Oyo State Secretariat, Agodi, Ibadan and environs.
“The Special Purpose Vehicle that Elektron Energy will use to execute this contract is Ibadan Hybrid Power Limited (IH Power). IH Power will also be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) licence.
“This 11MW solution is called a hybrid power solution because it comprises 10MW gas-fired power generation and a 1MW PV solar solution.
“We believe Elektron Energy has both the experience and the financial wherewithal to carry out this project as they already own and operate existing IPPs in Nigeria.
“Now, please permit me to outline some of the beneficiaries of this project.
“The project is being warehoused here at the Oyo State Secretariat, and so the state secretariat and government facilities that enjoy proximity to the secretariat will benefit
“Specifically, when completed, this 11MW hybrid power solution will power 12 healthcare facilities, including Adeoyo Maternity Teaching Hospital and State Hospital Ring Road. As you may know, our administration has invested heavily in world-class diagnostic and treatment equipment at these hospitals with a direct impact on about 15,622 patients annually.
“It will also power the Lekan Salami Sports Complex, Adamasingba. When we commissioned the main bowl in September this year, some people went to town to say we commissioned a swimming pool. Well, I am happy to tell you that the so-called ‘swimming pool’ may soon be approved by the Confederation of African Football as the new home for the Super Eagles 2022 playoffs.
“This IPP will also power not less than 10km radius of public lighting under the ‘Light-Up Oyo’ project. And of course, as we say, where there is light, there is security and economic development.
That is not all. This Independent Power Project will also provide for the energy needs of the judicial complexes at Iyaganku and Ring Road, the Oyo State House of Assembly and a selection of schools within a defined catchment from the generation plant at the Oyo State Secretariat.
“Although this project will initially serve Oyo State Government facilities, we are already thinking of incorporating similar projects into our administration’s vision to facilitate the expansion of the state’s economic base by making power available to industrial catchments. For example, the Moniya Business District.”
Governor Makinde explained that the project will be ready within six to eight months.
“So, we are very excited about this project. The contractors have told me that it will be ready in six to eight months. Within the terms of our agreement, the Oyo State Government will repay the capital expenditure investment of Elektron Energy over a ten-year period within which the energy company will operate and manage the infrastructure. The total cost of the project is pegged at Eight Billion, Twenty Seven Million, Four Hundred and Thirty Thousand, Two Hundred and Fourteen Naira (N8,027,430,214). This project is being executed on a Build-Operate-Transfer basis.
Earlier in his welcome address, the Commissioner for Energy and Mineral Resources, Barr. Seun Ashamu, explained that though the project would initially serve government facilities, it has potentials to spill over to industries and the wider society, thereby guaranteeing constant electricity supply in the state.
Managing Director of the firm handling the project, Mr. Tola Talabi, equally assured that the project would be delivered within the next six to eight months.