April 23, 2018

Delta State to generate 8.5 Megawatts of Electricity for Asaba

Delta State to generate 8.5 Megawatts of Electricity for Asaba

Delta State Governor, Dr. Ifeanyi Okowa, has sought the State Assembly’s ratification and approval for the development of 8.5 megawatts Asaba Integrated Power Plant Project (AIPPP) at N134 million monthly  for ten years.

The governor’s letter to the Assembly addressed to the speaker, Mr. Monday Igbuya, on Tuesday was informed by the issue of power supply to government offices, government residential facilities including other public infrastructures in the state as measures to effect changes in the poor power supply by management of Benin Electricity Distribution Company (BEDC) in the recent times as well as continued protest and complains by residents of Asaba and its environs.

Expectedly, the import of the letter is also to solicit the ratification of the House for the approval of the State Executive Council and subsequent Power Purchase Agreement (PPA) between the state government and Banstanchury Power Solution Limited for the development of an 8.5 MW AIPPP.

The move by the state government as contained in the letter, which was read on the floor of the House by the Speaker, Hon. Monday Igbuya, is to curtail the monthly expenditure of N81 million on combination of national grid and generator-based power supply that can hardly provide continuous/uninterrupted supply beyond an average of 15 hours daily.

It is envisaged that when the project comes on stream, 7.5MW of power in the grid would be freed, which would, in turn, be utilized by government and other consumers in Asaba and would eventually improve greatly, house hold/industrial power in the state capital.

Also projected is the fact that established consumption/load profile of 7.1MW, government’s electricity power bills would increase dramatically to N170.3million for 24 hours daily supply for the national grid at the new tariff of N45.50 for offices/facilities and N38.56 for residential estates/quarters; the amount which would continue to increase steadily over the next few years.

Okowa stated that against the backdrop of the foregoing, with regard to its sustainable nature, the State Executive Council considered and approved the development of an Asaba Integrated Power Plant Project by Messrs Bandstanchury Power Solution at a cost N22.81/kwh tariff, translating to N134million for 10 years with a two percent incremental adjustment of tariff.

The governor also stated that he approved an additional N30million monthly gas fuel pass-through charge, bringing the total monthly cost to a maximum N164million under the auspices of a Power Purchase Agreement (PPA) already signed by both parties.

According to Governor Okowa, the PPA requires government  to issue an Irrevocable Standard Payment Order (ISPO) in support of monthly power tarrif and a related bank guarantee covering the cost of the project as required by Banstanchury Power Solution Limited financiers.

Government offices to be covered by the project include; New Government House, Old Government House, Felix Ibru Secretariat, House of Assembly Complex, Customary Court of Appeal, Office of the Deputy Governor, Office of the Secretary to State Government, Ministry of Works/Energy and Housing, Cabinet Office, Old Secretariat and Ministry of Information.

Residential estates/quarters to be covered include Fine Homes, Commissioners Quarters, Permanent Secretaries Quarters, VIPs and New VIP lodge Annex, House of Assembly Quarters and SSG’s residence.

Others are the Chief of Staff’s residence, and Presidential Lodge. Facilities to be covered include streetlights in Asaba, Delta Broadcasting Service, Asaba International Airport, Event Centre and Universal Basic Education Board.

Meanwhile, the Delta State House of Assembly has received a letter nominating Mr. Joseph Duke Okeze for confirmation as Director General, Public Procurement Commission.

The house also confirmed Barr. Aghoghovia Otto as Deputy Clerk of the State House of Assembly in a motion moved by the Majority Leader, Hon. Tim Owhefere and seconded by the Deputy Majority Leader, Hon. Oboro Preyor. As contained in the letter sent by the State Governor, Ifeanyi Okowa, the nomination is part of steps taken to set up the Public Procurement Commission as established by law.

The letter which was read on the floor of the House by the Speaker, Hon. Monday Igbuya, stated that, “As a first step in that regard, I wish to use this opportunity to inform you that in the exercise of the powers conferred on me by Section 8(1) of the Delta State Procurement Law, 2016 in that regard, I forward herewith the name of Mr. Joseph Duke Okeze as my nominee for consideration and confirmation as Director-General of the Public Procurement Commission.

“The purpose of this letter, therefore, is to request you to invoke your powers under the same section of the law to place the appointment of the nominee before the honourable house for consideration and confirmation as requested”, the letter read.

The Majority Leader of the House, Hon. Tim Owhefere moved for the acceptance of the letter and was seconded by the member representing Uvwie Constituency, Hon. Efe Ofoburuku.

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