Gov. Okowa Abandons Oghara IPP, Connives With Assembly, Others For Asaba IPP

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If the reports filtering into our newsroom faraway from Delta State is anything to go by, then, Governor Ifeanyi Okowa may have abandoned the most controversial multi-billion naira Delta State Independent Power Plant (IPP) project at Oghareki in Ethiope West local government area of the state.

The governor, HardReporters reliably learnt has connived with leadership of the state house of Assembly and other persons to embark on Asaba Independent Power Plant (IPP) project and to give it a legislative backing, a letter from the governor has already been forwarded to the house, asking the state House of Assembly for the approval of the proposed Integrated Power Plant to be sited in Asaba.

HardReporter would recalled that while conducting officials of the Federal Ministry of Environment, Abuja, round the project site, one Mr. Emmanuel Anazia of A and A Global Engineering, the IPP Project Consulting firm, disclosed that the controversial Oghara IPP project been handled by DavNotch Nigeria Ltd, a contracting firm owned by the former house of Assembly speaker, Mr. Victor Ochei, would be commissioned before the end of the Mr. Emmanuel Uduaghan led-administration, but this never happened.

Anazia had further stated that the contractor handling the IPP project has been sufficiently re-mobilized to go back to site, adding that the contractor would resume work at the site today. “Our contractor will move to site because they have been sufficiently re-mobilized”, he said, adding that “we have done more than 70 per cent procurement of the materials needed for the project”.

According to him, the poor road network which was hindering the movement of equipment to the site has been constructed by the Delta State Government, pointing out that the remaining civil engineering work would start off immediately.

“By the time we finish the civil engineering jobs in the next few months, he said, we will start the installation of the equipment, just as he assured Deltans that they would enjoy good power network by the time the project is completed. This power project would be delivered before the end of Uduaghan’s administration because this administration started the project and Governor Uduaghan will commission it before he leaves office”, Anazia had reiterated.

But non of the promises were fulfilled before the Uduaghan’s tenure came to an end.

Meanwhile, Okowa in his letter addressed to the Speaker, Mr. Monday Ovwigho Igbuya, said the project was necessary to boost the power supply by the Benin Electricity Distribution Company (BEDC), to government offices and infrastructures, explaining that the plant would be built by Messrs Brandstachury Power Solution
and supplied at a cost of N22.81/kwh.

“This would translate to N134 million in 10 years, with a two per cent incremental adjustment in tariff, the 8.5 MW project would also solve the epileptic power supply to residents in Asaba and its environs.”

According to the letter, which was read by the Speaker on the floor of the House, the project would reduce the state’s monthly expenditure of N81 million, saying that the plant would free about 7.5 MW from the
power generated from the national grid to enable consumers to have an increased electricity supply to households and industries.

Okowa noted that the plant would impact positively on government’s monthly electricity bills and the number of hours that the state enjoys uninterrupted power supply even as he disclosed that he had approved an additional N30 million monthly gas fuel pass through charge, to bring the total monthly cost to a maximum of N164 million under the Power Purchase Agreement (PPA) that both parties had signed.

The governor further explained that the PPA required government to issue an Irrevocable Standard Payment Order (ISPO) to support the monthly power tariff and related bank guarantee required by the financiers.

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