Firm to build 130MW power plant in Lagos

19 Comments » December 11th, 2007 posted by // Categories: Energy Development Project



 

THE NATION

 

Firm to build 130MW power plant in Lagos    11/12/2007
     

 

A consortium of firms from Singapore and Hong Kong, Nigerian partners and the Lagos State government have concluded plans to build a 130 mega watt power plant in Lagos.

 

The firms include Transglobal Energy Funds Pte Limited (Singapore), Royal Orchid Holdings Limited, Elite Max Asia Limited and World Energetic Holdings Limited, which is registered in Nigeria as Energy Infrastructure Fund Limited (EIFL).

The consortium, a member of Supra Energy and Power City Pte Limited, will from next year begin the construction of the 670 hectares Lagos Energy City at Badagry at a cost of $1.5 billion (about N180 billion).

The Chief Executive Officer of Transglobal Energy Funds, Mr. Trivedi Kiran, said in Lagos that the private power plant was to ensure that the city enjoy uninterrupted power supply when operational by 2010.

He said part of the sources of power supply to the city, would be from recycled waste.

Kiran said: “The Lagos Energy City is a project targeted at oil and gas industry and tourism to provide a one-stop-city for their operations. The city would have with all amenities, access road, recreation, hotel, hospital and schools of international standards and uninterrupted power supply.

“Lagos Energy City will be divided into two zones with zone 1 serving as convention and tourism zone and zone 2, the energy city zone. Zone 2 is being conceived as Africa’s first fully-independent business centre for the oil and gas industry. It will serve the needs of all players in the industry value-chain, providing world class office facilities, executive residences, schools, sports club, medical facilities and retail centres, among others.

“Lagos Energy City project is an eco-friendly development designed under the Green Integrated Utility System (GIUS) model with guidance of Siam Design Consortium. It has attracted the attention of leading multi-nationals in both the energy and tourism sectors.”

“A 155 hectare site will be developed to maximize its tourism appeal and cater to the needs of Lagos’ tourists and visitors. It will house a convention centre and other convention facilities, hotels, serviced apartments, luxury resorts, Spa’s and other tourist facilities. Initial investment for the infrastructure development in this zone, will be about $252 million.

The Energy City project, he said, would be formally launched in mid January next year. The construction of phase one aspect of the project comprising of infrastructure: roads and other amenities, he said, would start in March next year and expected to be completed in November after which the second phase would commence.

The energy city, he said would be the biggest in Africa adding that such a city has been successfully built in Hong Kong and was embraced by major oil companies in the world operating in the area.

Kiran said the design and planning contract was awarded to Siam Design Consortium and an agreement signing ceremony was held in Bangkok, Thailand last month in the presence of Lagos State Commissioners for Tourism, Senator Tokunbo Afikuyomi, Commerce and Industry, Honourable Adeniyi Oyemade and senior officials of Thailand Board of Investments, Department of Export Promotions.

Also at the press briefing were members of Board of Directors of the company, Alhaji Lai Mohammed, Mr. Ademola Adeyemi-Bero the managing director of British Gas Exploration and Production and Mr. Ebenezer Onyeagwu, a General Manager in Zenith Bank Plc. Zenith Bank was said to be the official Bank to the project. Onyeagwu said that city would not be a class based one but solution-driven project to bridge inefficiencies and man-hour losses.

Others at the briefing include the Chairman and Chief Executive of Adata C-Track Limited, Mr. Jeye Okorodudu.

It was also learnt that the Fola Adeola of the former PenCom and Transcorp is on board the company.

EIFL director, Ms. Jantana Sangjam said: ‘The establishment of this company is a major step towards the completion of goal in making Nigeria a global destination in terms of oil and gas business. This project is an indication of the global confidence of investors towards the project and the country, as proven by the amount of funding the project generated.

She noted that the master plan for the zone 1 and 2 of the project are well underway and is expected to be completed by middle of January, 2008, along with the completion of major milestones as discussed with the Governor of Lagos State, Mr. Babatunde Fashola during his visit to Singapore in October this year.

“The patronage of Lagos State and its people is the biggest ingredient for the continued success of this project,” she added.

 

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19 Responses to “Firm to build 130MW power plant in Lagos”

  1. Richard says:

    Finally someone will create jobs in the area where we would not always have to bring in the expartriates.

  2. Anonymous says:

    Housing and Hotels of world class.. will finally be here

  3. segun says:

    Hopefully the Government starts supporting the infrastructure work

  4. sophia says:

    We will have a Dubai at last…. what about Duty free shopping

  5. pmdaboh says:

    Sounds great for Lagos and Africa period! I am excited about all the prospects that will come out from this. Thanks for sharing it with us.

    Patricia Daboh

  6. baz says:

    I think its about time the governments realize that this is possible and require full support of open minded and honesty people. God provide daylight free at least we African should make use of that and provide a renewable energy for all, not generator which polutoin the ecology.

  7. Joseph Inyang says:

    Good move but let check the numbers $1.5 billion (about N180 billion) for 130megawatts is very high…. The going rate is about $1billion for 1000 megawatts

  8. alukome says:

    Joseph:

    $1.5 billion does look high. In my essay,

    https://www.nigerianmuse.com/essays/?u=NEPA_electricity_Nigeria.htm

    I have a table that has some new plants as follows:

    Ughelli, Delta State …150 MW [GT]…$54 million…….N7.6billion

    Alaoji, AbiaState …300 – 400MW [GT]..$148 million.. N25 billion?

    Papalanto (@ Olorunsogo),…335 MW…$148 million…N25 billion

    Geregu (@ Ajaokuta)….414 MW……$195 million……..N32 billion

    That puts power stations at roughly $300 – 500 million per 1000 MW. Doubling those numbers would put us in the $600 – $1 bllion per 1000 MW bracket.

    Bolaji Aluko

  9. RAYMOND ASUQUO says:

    Dear Josef Inyang,

    thank you for thestatistics of power plants and statistics. I am also currently working on a projekt for 165MW of electricity from unrecycleable plastics packaging wastes. at the cost lower than 50 million USD. From project development point of view, we should separate the energy part of the project from the Leisure and touriss promotion part in order to enable discernable cost comparision.

    I really do not support project proposals that bundle 5 to 10 businesses into one. Such projects like the so nationally advertised TINAPA business & Leisure center in Calaber which is up till now awaiting any active tenant. I prefer projects cut to size to fit already existing need where the economic growth of each part will stimulate related downstream business development.

  10. nf5kmw1 says:

    Bolaji:

    Thanks for the facts on ground.

    Raymond:
    Great work on your project.I invite you to join us and share your ideas at Nigerians for Super Energy. On TINAPA, I agree we do not want that as a power project example. It is a financial package example (how to get funds to deliver on a project). A good example of a power project is Nigerian Electricity Supply Corporation Ltd. (NESCO, a private firm in Jos) which ompleted its projects between 1923 and 1964 and have continued to provide virtually uninterrupted power to not only supply the Jos metropolis and meet local consumption under its allowed area. Lastly on the tenant issue, I visited in November and they are waiting for the tax and duties to be gazzetted (Fed. Govt red tape) The merchant I spoke to said they will not risk anything until the laws are on the books.

    Joseph Inyang

    • Ben says:

      Please how do I join Your Nigerians for Super Energy? Secondly, I would like to get in touch with this company that you mentioned, Nigerian Electricity Supply Corporation Ltd. (NESCO). Would you have their website, or contact email or phone number?

      Please help me out with this information.
      Thank you.

  11. Samuel says:

    Shame Nigeria still crawling for help despite enormous resources to buy technology and to build their capacty, Yes, Lagos need all source of generating energy. I hope the project will not fail. This is not the first time Nigeria involve in palace project that will not work.

    Huuuu!!!

  12. Kunle Seyi-Adekunle says:

    This project is OK, if it will address technological advancement and “growth” of the State and Nigeria at large. The cost (USD1.5b) though may be adjudged by the latest “Technological and Infrastructure requirements. As a project management consultant in the oil,gas and energy sector, I think the essence of the Project should not be without the input of indigenous Project Management Service providers. They are the nerves between the actual construction and commissioning process.

  13. tayo says:

    I read from Mr Aluko sometimes, In Nigeria, I believe there are some people who will never allow us to have electricity, guess what, they are Nigerians, how can a country spent trillions of Naira, Billions of Dollars and not have electricity… something is wrong with us. Im not been pessimistic about us, we should face reality… and the time is NOW!!!!!!

  14. Startworkleavestory says:

    Please leave talk and start…we need to see the results on the ground first.

  15. Baz says:

    Can anyone who is based in Nigeria confirm if this project has actualy taken off, since the last update or the money has been shared by the so call eligible contractors (Local). Energy is one of the causes of Nigeria Economy. It makes me feel sick that the Government does not monitor how projects. I hope the PM should try to use candle in his office for few week as see how it feels. FIX the energy and NIGERIANS in foreign will go back home to invest.
    We cannot pretend to each other. Please let know the progress of this project….

  16. pst tony says:

    my dear brothers and sisters we must stop crying and do some thing in our own little way to at least stop this madness by successive govt in nigeria over unstable electricicty in nigeria,join ASSOCIATION FOR STABLE ELECTRICITY IN NIGERIA 2DAY EMAIL:stableelectricity@hotmail.com tel:08037464400

  17. Knut H says:

    We are offering 260MW mobile power generators to Venezuela as 4 barges to a price around $190 million connected to the grid. The barges have not been closed yet, so we can deliver 150MW to Nigeria to a fraction of the cost asked. A better solution still is to use turbines, and since this is stationary, the total price will be below $100 million for the 150MW.
    We all know that Nigerians need to be paid to get anything done – but why not just hand out the money – of $1.5Bn – you can have your power generators, and then $1.4Bln to the poor and those that need them. Try to make the distribution of bribes a little more fair.

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