NIGERIA: FG grants Bauchi licence for 35MW plant

ABUJA: The Federal Government last week granted the Bauchi State owned electricity firm, Yankari Power Company, an embedded electricity generation license, to build 35 megawatts, MW, gas-fired power plant in Gudun Industrial layout of the state.
The Chairman of Nigeria Electricity Regulatory Commission, NERC, Dr. Sam Amadi, who presented the license to Governor IsahYuguda, in Abuja, said the company had complied with requirements stipulated in the NERC regulations for the application for license.
The elated Governor, while receiving the license said the state government would commit the sum of N200 billion to expand the power generation plant from 35 megawatts to 120 megawatts within the next nine months.
According to him, “we made sure that we complied with every regulation needed by the regulator before the commencement of the power plant.
Yuguda said the project is projected to gulp about $200 million, and aims at generating about 1000MW in the next two to three years.
He assured that already a good financing arrangement had been worked out to draw from $1.6 billion soft loan obtained from China Exim Bank through the Federal ministry of finance to support the power sector.
He added that the state government is also looking for counterpart funding from the Bank of Industry, BoI, to ensure speedy completion of the project.
“I want to assure you that having obtained this licence, in the next three months, we will deliver the 35MW. I am happy to announce to you that Federal Government has accommodated this project in $1.6 billion from China Exim Bank.”
He noted that many nations had followed the process to solve their electricity generation problems even as he urged other states to adopt the same method in the efforts to providing electricity for the inhabitants of their states.
“On the agreement that was signed with those who are to construct the power plant, we were initially given 18 months for the delivery of up to 150MW, but we believe that the first three months from the date of their clearing of site, we will deliver 35MW by the grace of God.
“With this development, I believe that many other states will come in and follow the new process to boost power supply and jointly within the shortest possible time, we will support the Federal Government in generating sufficient power.
“This is so that all our agencies and household power needs will be met within the shortest possible time. I know many nations have followed this method and in particular I recall what was done in China.
“They did not go for the mega power plants, they went for the smaller power projects and within a short period of time they were able to generate sufficient power for themselves.
Challenging other state governments to cue into the initiative, Yuguda said, “if all states in Nigeria can generate 200MW of power, I want to assure you that within the next two years we will have about 8,000MW and this will help compliment the Federal Government’s effort in providing power.”
In his remarks, Amadi said the licence completely stamps the legality on the project in Bauchi State, and called on other state governments and the private sector to cue into the embedded generation plan initiated by Bauchi.
He said the power generated is to be evacuated into the distribution network owned and operated by Jos Electricity Distribution Company, JEDC.
He said, “the parties have entered into a Memorandum of Understanding, MoU,  which provides the framework for the collaboration between the parties for the connection of the IPP to the distribution network.
“We are happy because embedded generation of electricity is the future of electricity in the country before our grid capacity improves to 40,000MW. This is a project we want other state governments and indeed companies to emulate because it guarantees the improvement of the socio-economic activities of the state.
”Having gone through due process, the commission has gladly issued licenceauthorising the state government power and also serve its citizens. We feel happy about this project because it is the future of the electricity industry until we are able to increase energy in a way that we will have up to 20,000MW.

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