Abuja – A consortium of Korean companies made up of the KNOC, KEPCO and POSCO is to build power plants in Abuja and Kaduna that will supply 1,350MW and 900MW respectively as well as 1,200km gas pipeline from Ajaokuta to Kano with a spur line that will take gas to Katsina state at the cost of five billion dollars.
Two years ago the NNPC and KNOC signed a Production Sharing Contract on OPL’s 321 and 323 linked to strategic downstream investment. Nigeria will provide secure energy sources to Korea who in turn will construct the facilities.
The Korean consortium has 80 per cent equity in the deal while NNPC has 20 per share holding. A breakdown of the Korean share holding showed that KEPCO has 35 per cent share, KNOC and POSCO has 15 per cent holding each while 15 per cent is reserved for a new investor to be determined at a later data.
Feasibility studies on the power plants and the gas pipeline as well as environmental impact assessment on the projects had been completed and the expected completion period of the power plants is put at 2014.
The gas pipeline will be constructed along the existing products pipeline and the project is expected to be completed before the end of 2013.
The steering committee of the NNPC/KNOC PSC as well as a delegation of the Korean Consortium paid courtesy call on the Governors of Kaduna, Kano and Katsina states aimed at exchanging views with stakeholders and beneficiaries of the projects.
Gov. Namadi Sambo of Kaduna state described the projects as a welcomed development and a win-win situation which will undoubtedly boost the economic base of the northern region.
He donated a parcel of land to the consortium for the construction of the power plant as part of the state’s commitment to the actualization of the project.
``Our moribund factories and textiles will soon resume operations having been in comatose for a long period of time,’’ the governor said.
He assured that the state would continue to support and cooperate with the consortium towards ensuring timely completion of the project.
In the same vein, Governor Ibrahim Shekarau of Kano state said gas supply to the state would undoubtedly have multiplier effect on the state’s economy, since over 400 moribund companies would resume production.
``We are ready to give all that you require to get to the timely completion of the project,’’ Shekarau said.
Governor Ibrahim Shema of Katsina state also pledged his support and cooperation to the timely completion of the project.
``I believe the project will touch the lives of most Nigerians as it is well thought-out and deliberate to boost our economy,’’ Shema said.
He described Koreans as perfect partners in any developmental effort and expressed optimism that the project would be a huge success.
He said the government welcomed proposal from the Koreans on how to tap and develop the abundant solar energy in the state.
``We are ready to give you our maximum cooperation to fast track your activities,’’ the governor said.