The Nigerian Electricity Regulatory Commission (NERC) over the weekend received applications for private-public sector partnership to construct 2,500 Megawatts thermal power plants at $4 billion from Delta State Government.
Receiving the application, the Commission's Chairman, Dr. Ransome Owan described the initiative as consistent with recommended project financing model by the Commission and that the model is about the most suitable to the Nigerian peculiar situation, especially with the huge capital outlay that is required for the power sector, which is not readily available at government's disposal.
Owan gave the Commission's assurance to consider the application and determine its financial and technical suitability within the statutory six month time frame as he urged other state governments to make similar private-public sector partnership arrangements to boost Federal Government's efforts at improving power generation in the country.
Bauchi State and few other states have in recent time indicated interest in independent power projects.
Representing the State Governor, Mr. Emmanuel Uduaghan, the Chairman of the Delta State Integrated Development Programme, Mr. Godwin Akpobire, said that the project would be financed through a consortium of two Nigerian banks- UBA and Oceanic and three other foreign banks- UBS, Bank Paribas and Barclays Bank.
He explained that the state government's commitment would be limited to facilitating right of ways and other related issues not bordering on financial commitment.
Akpobire explained that three special purpose vehicles, Delta State Generation Company, Delta State Transmission Company and Delta State Distribution Company have been formed to manage every segment of the business from generation to distribution.
Besides, 2,500Mw total generation would be produced from four different locations, Okpai in Ndokwa East, Ogborhen in Sapele, Oboghoro in Warri North and Olomoro in Isoko south parts of the state, with each of the plants having 625Mw capacity.
Barely 33 per cent of the state population is currently on the national grid, a development that is limiting economic and commercial space in the state, according to Akpobire, who added that Delta State Government would provide electricity to the remaining parts of the state through the power generated from the four power plants.