The Ondo State Government has sealed an Engineering, Procurement and Construction (EPC) contract with Posco E & C of South Korea to construct 550megawatts (mw) in the first phase of the Independent Power Project (IPP).
The state government said it partnered with Kingline Development Company of South Korea through its Nigerian subsidiary, Kingline Development Nigeria Ltd (KDN) to develop the plant.
In a statement yesterday, the officials said construction work for the phase I begins in the first quarter of 2016 and on completion of the open cycle gas turbine plant, the 550mw to be generated will be sold into the National Grid.
It said actual construction would take about 26 months from the date of issuing the Notice To Proceed (NTP). The second phase is expected to add another 500mw bringing the project to 1050mw plant.
Head of KDN, Engr. Akinnola Fola who spoke in Abuja at the weekend said a Special Purpose Vehicle, Kingline Ondo IPP Ltd has been registered to implement the power generation project and that funding had been secured already.
He said the gas supply process will be concluded this month while other procedures including the completion of the Power Purchase Agree (PPA) with the Nigeria Bulk Electricity Trading Company (NBET) shortly.
Governor of Ondo State described the contract with the Korean firm as a major step in the actualization of the project whose construction starts early next year.
Represented at the signing ceremony by the Senior Special Assistant on Energy/Power, Professor Ige Bolodeoku, the Governor said: “This is a major milestone for the state towards alternative revenue generation, especially during this time of dwindling oil revenue.”
Senior Vice President (Energy Division) at POSCO E&C, Mr Woo Dea-Young said “POSCO will work towards achieving its goal of keeping her reputation of timely delivery on project and a friendly relationship with the host community.”
Daily Trust-“Ondo, Korean firm to construct 550mw power”