U.S.$200 Million Power Plant Underway in Sapele

AllAfrica |

The Nigeria Bulk Electricity Trading Plc (NBET) has received from Nigerian Electricity Regulatory Commission (NERC), the names of Proton Energy amongst others who are being considered for power purchasing agreement licences.

This move is part of the process stipulated in the award of licence and operation in the power sector for Gencos, a statement explained. This, it further argued was an endorsement of process undertaken by Proton Energy in its bid for a licence to set up and operate a 500 megawat gas-powered plant in Sapele, Delta State.

It quoted the Chairman, NERC, Mr. Sam Amadi to have said the commission now expects the company to complete everything required in the process for the power licence.

"We expect that the company will expedite actions to ensure that all mandatory requirements are met and we expect correspondences from other bodies involved to confirm that Proton have met every requirements," Amadi explained.

To get the licence however, Proton would have to show evidences of satisfying the requirements of bodies like Transmission Company of Nigeria TCN, NBET and other companies.

Also, the Managing Director, NBET, Rumundanka Wonodi confirmed that Proton Energy was on the list of power licence prospectors that have been issued the Power purchase agreement draft to commence negotiation. "We got a list from NERC about those that have applied for licence and who we can consider for PPA. Proton Energy is on the list," he said.

Wonodi said the next stage for the company was to send a PPA draft to the prospectors to which responses are expected.

"We have sent a PPA draft and the first schedule to Proton to get it to understand the process and what is required of it. What we expect from the company now, are list of issues and those that it had complied with," Wonodi said.

Proton Energy, one of the new set of Independent Power Projects that are prospecting to boost power supply, is located in Sapele, Delta state. The plant at its initial stage has a projected installed capacity of 150 MW, and will be expanded to 500 megawatts at completion.

It will use Siemen technologies and other established tried and tested open cycle gas turbine technology.

The company's Executive Vice Chairman, Mr. Oti Ikomi said the plant initial capacity is projected to cost approximately $200 million and would be funded on a project finance structure on a 70 per cent debt and 30 per cent equity basis.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
UKRNY Ukrnafta Open Joint Stock Co. ADR (Sponsored) 108.91 0.00 0.00 0

Comments

Emerging Growth

H-Source Holdings Ltd.

H-Source Holdings Inc. is a technology company operating within the healthcare industry through its subsidiary, H-Source, Inc. The Company has developed a transaction platform that provides a private, secure and…

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…