The Ondo State Government and a Korean
firm, Kingline Development Limited, have concluded plans to boost
industrialisation in the state with the construction of a 550-megawatts
power plant valued at $500m (N99bn).
The Chief Business Development Officer,
Kingline Development Limited, Mr. Akinnola Fola, who disclosed this at a
press briefing in Abuja on Friday, said the project would transform the
state and make it an industrial hub.
According to him, the project, named
Kingline Ondo IPP, is to be situated at the Ondo State International
Industrial Park, Omotoso.
Fola
said the power project would be operated using the Public-Private
Partnership module and aimed to generate about 550MW in the first phase.
He said, “The output now is $500m for
550MW. This is the phase one of the project. At the second phase, we
will do another 550MW to bring it to 1,100MW.
“Also, the land for the project has been
secured as a contribution from the Ondo State Government. The total
area for the project is 250 acres. Also, the EPC contractor’s name will
be announced shortly after concluding the competitive bidding exercise
currently ongoing to select the best contractor among the offers
received.”
He added, “The Nigerian Bulk Electricity
Trading Plc has already shared the draft Power Purchase Agreement with
us for review and the necessary documents for signing the PPA are being
put together at the moment.
“Due diligence exercise is ongoing with
the Gas Aggregation Company of Nigeria Limited, while licensing
documentation after approval to generate power under unsolicited
condition on the strength of our partnership with Ondo State is under
preparation. It will be submitted shortly.
“On the equity contribution, we are 100
per cent equity funded. Our debt raising is ongoing with Global
Investment Bank, the leading fund raiser.
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