‘Asaba IPP, Turning-point in Nigeria’s Energy Sector’

Omon-Julius Onabu in Asaba

The 8.5 megawatts Independent Power Plant in Asaba, the Delta capital, has been described as a turning-point in Nigeria’s quest to address the challenges in the power sector.

The Managing Director of Bastanchury Power Supply, Mr. Chidi Goziem, told newsmen in Asaba that it was “a turning-point” in the country’s effort at tackling the energy challenge, adding that the impact of the project would “rub off on the entire Asaba community through improved power supply and security.”

He was speaking on the functionality of the concept and objectives of the Asaba plant vis-a-vis the role of independent power projects in tackling the inadequate supply of electricity for socio-economic activities.

The electricity generating project Asaba, which was initiated at the instance of the Delta State Government, was recently inaugurated by the Vice-President, Prof Yemi Osinbajo and experts said it would be the needed tonic for similar ventures across the country.

While inaugurating the Asaba IPP, the vice-president expressed confidence about a better future for the energy sector in the country especially through the committed pursuit of the public-private-partnership (PPP) initiative.

Osinbajo was in company with Governor Ifeanyi Okowa of Delta State, Governor Douye Diri of Bayelsa State, Delta Deputy Governor Kingsley Otuaro and his Edo state counterpart, Mr Philip Shuaibu as well as several top-ranking national and state government functionaries.

The project was executed in partnership with private entities, Africa Plus Partners Nigeria Limited and Bastanchury Power Solutions Nigeria Limited and the plant, which has a distribution network of over 25 kilometers using underground cables, is to power all the state government assets and facilities in the Delta State capital, including the new Professor Chike Edozien Secretariat Asaba also inaugurated by Prof Osinbajo.

Speaking further on the project, the Managing Director of Africa Plus Partners Nigeria Limited and Chief Investment officer of Africa Infra Plus Fund (AIPF), Mr Niran Ajakaiye, said that the project came to fruition following the Okowa administration’s commitment to purchase the power generated by the plant.

With government assets fully supplied from the Asaba IPP, the load-shedding in Asaba metropolis from the electricity distribution companies would be reduced to the barest minimum, he said.

He said that the supply that would have come from the distribution companies (DisCos) to the state government institutions would be redistributed to households and other corporate organisations, translating to longer hours of electricity supply for the capital city.

Ajakaiye said: “The partnership is that we said we will build, finish everything, then the state made the commitment to buy power from us. Everything here is funded by us not by the state. Their part is that they committed to buy, they guaranteed an off-take for us.

“Now, they are enjoying it, even paying cheaper than what they would have gotten from DISCO because it is bulk purchase, so you can negotiate discount

“All the government assets in Asaba are covered, it is like buying a big generator for all your assets.

“The Africa Infra Plus Fund is managed by Africa Plus Partners Nigeria Limited, a Securities and Exchange Commission (SEC) licensed infrastructure fund manager that is playing an active role in infrastructure investment in Nigeria. It is important to note that Africa Plus Partners is also a part of the AAA Consortium, one of the Asset Managers approved by the Federal Government of Nigeria to manage the $37 billion Infrastructure Fund, named Infra-Co.”

Ajakaiye further noted that local businesses would also thrive because of a more regular power supply, noting that “If all the government facilities are taken off the grid, DISCO can now provide sustainable longer coverage to other areas, reducing load shedding to a very minimal percentage.

“That is the multiplier effect, business will grow because they would not load shed. Government hospitals, public health centres, the courts, street lights, airport and other institutions of government are all connected to this IPP.

The Asaba Independent Power Project is a demonstration of what private capital can do in Nigeria and we seize this rare this rare opportunity to encourage other infrastructure project developers to join companies like ours, that is Bastanchury Power Solutions Nigeria Limited, to take advantage of local infrastructure funds for the development of their world-class projects in Nigeria.”

However, he debunked rumours that the plant was built without Environmental Impact Assessment, insisting that the state government had no equity stake in the enterprise but that five percent was magnanimously gifted to the state.

Saying that the facility has the capacity to expand its areas of coverage outside government facilities, Ajakaiye said the laws would however need too be revisited to accommodate this.