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The Lagos State Government Thursday inaugurated the 10.4mw Alausa Power Project, which was expected to supply power to the state secretariat in Alausa and its environs.
The power plant, which is to run on natural gas, is a Public-Private Partnership (PPP) that was developed by Oando Plc and financed by Fidelity Bank Plc.
The Governor, Mr. Babatunde Fashola, explained at the occasion, that with the power plant, the state government would cease to use about 120 generators within the secretariat, adding that it would also bring about efficiency and increased productivity.
He said: “This project automatically decommissions 120 generators at the last count and some of the smallest generators that we are talking about here are 30KVA generators and the aggregate of that is actually 30mw of inefficient power, loss of time, loss of accountability, diesel supply, transport cost and all of that, from today, will now be history.
“But this is not our destination. There are two Independent Power Projects (IPPs) to come and we will continue to focus on public power. There is a new IPP coming up in Lekki and a new one coming up in Ikeja GRA and all of these should be fully completed next year.”
Fashola added that the solution to unemployment, underdevelopment, job creation and improved economic activities remains in ‘made in Nigeria’ products.
“So, I am happy that this is another ‘Made in Nigeria’ project, delivered by a Nigerian government, with two Nigerian companies, using largely Nigerian personnel to solve Nigerian problem.
“But this would not have happened without PPP. For those who doubt PPPs, I think they should look at the balance sheets of Fidelity Bank and Oando and the number of people they employ. Every time government creates this kind of interactive environment, where the financial expert, like Fidelity, who certainly has shown that they have a nose for power and have found the right partnership in Oando, that is committed to really growing the economy,” the state governor added.
Fashola said the state supported the federal government power reform because “we believe that the work we have done here will be useful to those companies.”
“We already have in Lagos, a transformer manufacturing plant and so we are going ahead to ensure that when the power is here, the component to bring it to the people will be available. So we are already ahead of the curve,” he said.
To the Group Chief Executive Officer, Oando, Mr. Wale Tinubu, the project was a clear demonstration of the state government’s power revolution, saying it would save the state huge cost spent on diesel.
On his part, the Group Managing Director/Chief Executive Officer, Fidelity Bank, Mr. Reginald Ihejiahi, commended the state government, saying it was the third power project to be financed by the bank in the state.
“This project is going to supply power to 62 buildings and each of them is made up over 1,000 offices. We are very happy to do it with Oando,” he said.