The Nigerian Electricity Regulatory Commission (NERC) has issued a generation licence to Ondo state government and its partners, Kingline Development Company, a South Korean firm, to generate 550 megawatts (MW) of electricity in the stateâ€™s Independent Power Project (IPP) plant.
A statement confirming this was sent to THISDAY on Sunday in Abuja. The statement had the officials of the power project describing the licence from NERC as a major milestone and a huge push to bring the first phase of the Kingline Ondo Independent Power Plant to realisation.
The statement was signed by the Business Development Director and Head of Nigeria operations of Kingline, Mr. Akinnola Fola. He noted that the NERC license was signed in Abuja and that the the promoters of the IPP were excited with the development.
Fola also disclosed that actual construction of the plant would commence in June 2016. According to him: â€œThe project is in the final stage before achieving finance close.â€
He added that Ondo state government in 2015 sealed an Engineering, Procurement and Construction (EPC) contract with POSCO E & C of South Korea for the first phase of the stateâ€™s proposed 1100MW IPP project.
Fola explained that the state government is currently partnering Kingline through its Nigerian subsidiary for the development of the IPP.
â€œThe first phase of the project involves the construction of a gas-fired power plant that will generate 550MW of power to be sold into the national grid. The second phase is expected to add another 550MW.
â€œPOSCO is to see to the design, engineering, procurement, construction, commissioning and testing of the 550MW open cycle gas turbine power plant in Ondo State,â€ Fola stated.
He further explained that actual construction of the first phase is expected to take about 26 months from commencement and date of issuing the Notice To Proceed (NTP).
According to him: â€œKingline Ondo IPP Ltd is to implement the power generation project. The Engineering, Procurement and Construction (EPC) contract between international engineering and construction company, POSCO E & C of South Korea and Kingline Ondo IPP Ltd is considered a crucial milestone. The contract covers the turnkey delivery of the power plant.â€