Akwa Ibom State government and the African Delta Power Limited have signed a co-location power production agreement for additional 366 megawatts to the existing 191megawatts of the state-owned Ibom Power Plant located at Ikot Abasi Local Council of the state.
The new deal indicates that the aggregate maximum capacity of the gas turbine generator units is capable of producing up to 732Megawatts.
This also means that Ibom Power will have to apply to the National Electricity Regulatory Commission for expansion to cover the expanded license. The company currently, has an on-grid license for 685MW.
The agreement sealed on Monday with the State Attorney general and commissioner of Justice, Uko Udom (SAN) signing on behalf of the state government, the board chairman of the Ibom Power plant, Engr Etido Inyang and company secretary Barr. Ime Asibong, signed for the Ibom plant, while Jemeriah Oluwaseun and Christabel Nwagum (CEO of African Delta and Secretary respectively) signed for the African Delta Power.
During the ceremony which held at the office of the Secretary to Akwa Ibom State Government and Chairman of the One-Stop Shop on Investment Committee, Dr. Emmanuel Ekuwem, said the agreement was “not an MOU but rather it is a step further, which has transited the MOU phase”.
He said the proposed power project is under the ‘Power for All Initiative of Governor Udom Emmanuel, which was inaugurated about two years ago by the Vice President, Prof. Yemi Osinbajo.
Dr. Ekuwem urged the investors to follow up the agreement by living up to the letters as enshrined in the terms of the contract.
On the implementation of the project, Ekuwem urged the African Delta Power team to speed up the processes and abide by the roadmap agreed to by government for the project.
In his remarks, the Chairman of Ibom Power Company Limited, Engr. Etido Inyang said the first phase of Ibom power is already operational with an installed capacity of 191megawatts. He said Ibom Power has a license to generate 685megawatts of power which the proposed power plant will leverage on.
“We have a Delta of the remainder of the license that which is 685megawatts. They are coming in with their first phase of 366megawatts with plans to expand to 732megawatts which we will get an additional license to support”.
Giving further insights, the Board Chairman revealed that the Company had received many bids from several investors that had shown firm interest to partner Ibom Power for its Phase 2 but African Delta Power has proven to be ‘outstanding’.
“Their technical partners have been supportive and we have seen the turbines that are coming in. We have seen that they have evidence of funding that will be deployed in the installation of these turbines and they are going to commence groundbreaking within the first week of June”, he stated.
The Managing Director of Ibom Power, Engr. Meyen Etukudo expressed satisfaction over the deal, and described it as ‘mutually rewarding’ for both parties with great prospects for the future. The Phase 2 of Ibom Power, according to him, will ensure the company continues to break more frontiers.
On how the project will be implemented within the stipulated nine months period, the Chief Executive Officer (CEO) of African Delta Power, Jeremiah Oluwaseun said, most of the turbines and the systems have been prefabricated so they are ready to be deployed with their foreign technical partners from the United States.
“Once a few other things are put in place, these equipments will be shipped in, in phases for onward installation here”.
Oluwaseun said that Akwa Ibom was selected for the project because the state had the prerequisites for the project.