By Etuka Sunday
It is longer news that the Niger Delta Power Holding Company (NDPHC) is working tirelessly by driving the implementation of the National integrated Power Project (NIPP) in the country.
The three (3) tiers of Nigeria’s government needing a legal vehicle to implement a National Integrated Power Project (NIPP) using private sector-orientated best business practices, established the Niger Delta Power Holding Company Limited (NDPHC) in 2005 to manage the NIPP.
The NDPHC is funded from the Excess Crude Account of the Federation of Nigeria and its shareholding structure is naturally in accordance with section 162(3) of the 1999 Constitution and Allocation of Revenue (Federation Account, etc.) Act. Cap A15, LFN 2004.
The Scope of the NIPP
The NIPP was originally designed around seven medium-sized gas fired power stations in the gas producing states of the Niger Delta. The power plants were later expanded to ten with the addition of three others in Ogun, Ondo and Kogi states.
The NIPP then intervened in transmission projects because of the need for critical transmission infrastructure to evacuate the added power into the national grid. To enable provision of adequate gas to fire the power plants, gas infrastructural projects were equally embarked upon and included within the framework of the NIPP. A commitment to electrify host communities in the vicinity of the power stations and major substations as well as ease power flow to the end –users across the country made it imperative to expand distribution capacity and infrastructure in the distribution zones.
NIPP Phase 1 Projects: Generation
The NIPP has 10 Thermal Power Plants, 5067MW ISO Capacity (Designed), 4620 MW Site Rated Capacity (@31 oC, 70% RH), 8 Simple Cycle, 2 Combined Cycle, 35 Gas Turbines, 6 Heat Recovery Steam Generators and 3 Steam Turbines. The NIPP is more than 35% of Nigeria’s Installed Capacity.
NIPP Power Plants
Olorunsogo II Power Plant -Olorunsogo, Ogun State; Ogorode Power Plant– Sapele, Delta State; Omotosho II Power Plant – Ore, Ondo State;
Geregu II Power Plant – Ajaokuta, Kogi State; Ihovbor Power Plant – Benin City, Edo State; Alaoji Power Plant – Aba, Abia State; Calabar Power Plant – Odukpani, Cross River State; Gbarain Power Plant – Yenagoa, Bayelsa State; Omoku II Power Plant – Omoku, Rivers State; Egbema Power Plant – Egbema, Imo State.
NIPP Power Plants Status
Olorunsogo, 756 MW, was initiated in 2007, is 100% completed; Ogorode 504.4 MW, was initiated in 2006 is 100% completed; Omotosho 518.0 MW, was initiated in 2007 is 100%; Geregu 504.0 MW, was initiated in 2010 is 100% completed; Ihovbor 504.4 MW, was initiated in 2006 is 100% completed; Alaoji 789.4 MW,was initiated in 2005 is 80% completed;
Calabar 630.5 MW, was initiated in 2006 and is 100% completed; Gbarain 252.2 MW, was initiated in 2006 and is 90% completed; Omoku 252.2 MW, was initiated in 2006 and is 71% completed; Egbema 378.3 MW, was initiated in 2006 and is 67% completed.
Gas Infrastructure Projects
Gas pipeline and metering Stations at Ihovbor, Gbarain, Calabar, Oro, Sapele, Alaoji, Geregu, Omotosho are 100% completed. While Egbema is 85% completed.
Transmission Infrastructure
The NIPP have successfully completed 112 HV Transmission projects; 31 EPC Lots; Over 1635 km of 330kV Double Circuit Lines; Over 720km of 132kV Double Circuit Lines; 10 new 330kV Substations; 7 new 132kV Substations; 6,150 MVA of 330/132kV transformer capacity; 2,800 MVA of 132/33kV transformer capacity; Expansion of 36 330kV & 132kV TCN Substations.
NIPP Intervention Projects – Transmission
It has undertaken the upgrade of Ajah/Lekki/Alagbon from 132kV to 330kV DC Line– completed & energized; Turn-In-Turn-Out of Ajah/Lekki/Alagbon 330kV DC Line – completed & energized;
Turn-in/Turn-out at Asaba on 330kV SC 3rd Benin/Onitsha transmission line – completed & energized; Installation of 75MVAR Shunt Reactor at Gwagwalada 330/132/33kV substation – procurement process initiated;
Completion of TCN 2x60MVA, 132/33kV; Kukwaba substation is ongoing and 85% completed. 1X150 MVA, 330/132kV and 2X60MVA 132/33kV Lafia SS;
132kV DC Abakaliki – Ikom – Obudu Transmission Line.
Impact of the NIPP on Pre-Existing National Infrastructure Nigeria’s installed capacity (Nationwide) in generation projects pre-2000 was 5, 329; by 2006, it was 8,440 and post NIPP is 13, 140, an increase of 56%.
In transmission projects, Nigeria’s 330kV lines pre-2000 was 4,495km, by 2006, it was 4,738km, and post NIPP is 6,932km, an increase of 46%. Nigeria’s 132kV lines pre-2000 was 5,430km, by 2006, it was 6,227km, and post NIPP is 7,036km, an increase of 13%.
Nigeria’s 132/33kV transformer capacity pre-2000 was 5,700MVA, by 2006, it was 7,805MVA, and post NIPP is 11,118MVA, an increase of 42%.
Nigeria’s 330/132kV transformer capacity pre-2000 was 5,300MVA, by 2006, it was 6,008MVA. Post NIPP, it is now 11,590MVA, an increase of 93%.
In national distribution projects, 33kV transmission lines at 2006 was 45,252km, post NIPP is 47,538km, an increase of 5%. 11kV transmission lines at 2006 was 31,973km; post NIPP is 36,648km, an increase of 15%. 0.415kV transmission lines at 2006 was 232,862km, post NIPP is 245,905km, an increase of 6%. 33/11kV S/Stations at 2006 was 8,148MVA, post NIPP is 11,649MVA, an increase of 43%. 33kV & 11/0.415kV S/Stations at 2006 was 11,810MVA, post NIPP is 14,878MVA , an increase of 26%. 33kV & 11/0.415kV S/Stations at 2006 was 32,000, post NIPP is 84,170, an increase of 163%. 33kV/11kV substations at 2006 were 1,048, post NIPP is 1,311, an increase of 25%.
Privatisation – NIPP Generation Assets
Negotiations commenced with only seven of the Preferred Bidders in June 2014 due to litigation on Alaoji, Gbarain and Omoku. With the resolution of the litigation in 2016, negotiation commenced on Gbarain in March 2017.
Market liquidity challenges, inadequate gas supply and other problems, led to the decision to phase the completion of the transactions starting with fully operational power plants. In February 2016, the chairman of the NDPHC board and Vice President of Nigeria, Professor Yemi Osinbajo approved Phase 1 transaction be recommenced for Calabar,
Geregu and Omotosho. Egbema and Gbarain were subsequently included.
The privatization process has come a long way and some milestones in the privatization process of 80% shares in the NIPP power plants were;
Invitation to Expression of Interest on April 8, 2013; Investor Road shows June 4 – 27, 2013; Submission of Expression of Interest, July 19, 2013; EOI Evaluation and Pre-qualification of Bidders, August 16, 2013; Issuance of Bid Documents, August 19, 2013; Opening of Data Rooms Aug. 19, 2013; Bidders’ Conference September 18 – 19, 2013;
Distribution of Final Industry Agreements and Bid Documents October 11, 2013; Deadline for Submission of Proposals November 8, 2013;
Evaluation of Technical Bids, November 12 – 22, 2013; Consideration of Technical Evaluation Report by NDPHC Board/NCP December 6 – 9, 2013;
Opening of Financial Bids March 7, 2014; Submission of Preferred Bidder’s Guarantee April 30, 2014; Commencement of Negotiation with Preferred Bidders June 3, 2014.
A National Legacy
To fast track Nigeria’s energy need, gas fired thermal power plants were preferred in consideration of the abundance of gas in the Niger Delta region, as well as the expediency of government investments in the accelerated infrastructure development in the region aimed at calming the youth restiveness and consequent militancy. Critical projects to close the national transmission grid loop in the East-North flank were also identified. This was to ensure that all parts of the country benefit from the additional generation. The interventions in the various segments of gas transportation, transmission and distribution infrastructure are meant to be transferred to appropriate licensee and statutory agencies while generation assets are to be privatised. The generation assets are presently comprised in 10 subsidiaries for ease of privatisation which indeed began in 2012 with the emergency of preferred bidders in 2013.
With the strong commitment of the present administration to meet Nigeria’s energy needs, it has re-enforced the determination to see the coming to fruition of the NIPP by the Nigerian people. Africa and the rest of the world are watching closely.
