The Ondo State Government has sealed a construction contract with POSCO E&C of South Korea for the first phase of the state’s proposed 1,050 megawatts independent power plants.
The state is partnering Kingline Development Company, a South Korean firm, through its Nigerian subsidiary, Kingline Development Nigeria Limited, for the development of the power plant.
The Head of Kingline Development in Nigeria, Mr. Akinnola Fola, stated that the first phase of the project involved the construction of a gas-fired plant to generate 550MW of electricity that would be fed to the national grid, adding that the second phase was expected to add another 500MW.
According to him, POSCO will see to the design, engineering, procurement and construction of the 550MW open cycle gas turbine power plant in Ondo.
He stated that the actual construction would commence in the first quarter of 2016 and would take about 26 months from the date of the issuance of the Notice to Proceed.
The firm noted that a special purpose vehicle called Kingline Ondo IPP Limited had been registered to implement the project.
It noted that the EPC contract between POSCO E&C and Kingline Ondo IPP Limited was considered a milestone, adding that the contract covered the turnkey delivery of the power plant.
Fola said that funding had been secured for the project, stressing that the EPC contract was signed recently at POSCO E&C’s head office in Inchon, Seoul, South Korea.
PUNCH-“Ondo, Korean firm to build 1,050MW power plant”