MAKINDE FLAGS OFF N8BILLION INDEPENDENT POWER PROJECT IN IBADAN
Oyo state governor Seyi Makinde has flagged off the construction of 11MW Independent Power Project.
The project dubbed hybrid power plant is to be executed by Elektron Energy on a Build-Operate-Transfer model.
Speaking at the groundbreaking at the Sate Secretariat, Agodi, Ibadan at the weekend, Governor Makinde said the facility will provide power to government facilities within the Oyo State Secretariat, Agodi, Ibadan and environs.
He dispelled the notions that only the Federal Government could distribute energy, and that any power generated at the state or local level must be fed to the national grid before it can be distributed.
Citing Section 67(1) of the Electric Power Sector Reform Act 2005, which provides that, “Subject to such terms and conditions as the National Electricity Regulation Commission (NERC) may fix in the licence, a distribution license will authorize the licensee to construct, operate and maintain a distribution system and facilities..”, the Governor maintained that independent power distribution is legal.
Other facilities to enjoy from the 11MW hybrid power solution include; 12 healthcare facilities, including Adeoyo Maternity Teaching Hospital, State Hospital Ring Road, the Lekan Salami Sports Complex, Adamasingba, the judicial complexes at Iyaganku and Ring Road, the state’s House of Assembly, and a selection of schools within a defined catchment from the generation plant at the Oyo State Secretariat.
He said the project which would be delivered in eight months is to cost N8,027,430,214, with the state government repaying the Elektron Energy for over a ten-year period within which the energy company will operate and manage the infrastructure.
He added that the Special Purpose Vehicle that Elektron Energy will use to execute the contract is Ibadan Hybrid Power Limited (IH Power), noting that IH Power will also be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited, which will hold an Independent Electricity Distribution Network (IEDN) license