After initial hiccups, the National Integrated Power Project (NIPP) has begun a monthly delivery of completed new projects towards the realisation of additional 4,774 megawatts, signaling a harvest time for Niger Delta Power HoldingCompany, Ejiofor Alike writes


Apparently miffed by the epileptic power situation in the country and the abysmal failure of the then National Electric Power Authority (NEPA) to address the situation, the administration of former President Olusegun Obasanjo had in 2004 set in motion a process to break the monopoly ofthe ailing power utility giant.
To actualise this aspiration, the former president had in the same year set up the National Integrated Power Project (NIPP) as “a fast-track government-funded initiative to stabilise” the country’s power supply, which had suffered decades of lackof sustained investments.


The NIPP initiative, which is adjudged as one of Obasanjo’s greatest legacies, was to be quickly followed by private sector-led electricity industry with the Electric Power Sector Reform Act (EPSRA) of 2005 as the driver.
Under the initial NIPP concept, seven medium-sized gas-fired power stations in the Niger Delta, and the relevant transmission facilities to evacuate the power were envisaged to complement the existing power infrastructure.
Since the NIPP would provide free electricity supply to the communities living within 5-kilometre radius from the power plants, distribution projects were also incorporated into the programme.


In order to avoid one of the problems that crippled NEPA, which was inadequate funding or bureaucratic bottleneck that delayed release of funding for replacement and maintenance of aging infrastructure, the National Council of State and the National Assembly in August2005 gave express approval of $2.5 billion for NIPP from the Excess Crude Oil Account(ECOA) belonging to the three tiers of government.
The Niger Delta Power Holding Company Limited (NDPHC) was also set up as a limited liability company, “to serve as the legal vehicle to hold the NIPP assets using private sector-oriented best business practices”.


However, when Obasanjo handed over to anew administration in 2007, the power sector witnessed a major setback as the status of the NIPP as it relates to funding, legal and political issues was queried by the new administration, resulting in the suspension of all the projects under the programme for two and a half years.
Lifting of Suspension
But after realising belatedly that there wasno alternative to NIPP, the administration’sNational Economic Council (NEC) at the end of 2008 agreed to approve the release of $5.375 billion from the ECOA as a PowerEmergency Fund to complete the projects.


Consequently, NEC in 2009 set up a NIPP Steering Council headed by then Vice President Goodluck Jonathan to drive the aspiration, with six state governors representing each of geopolitical zones and four ministers as members. The steering council has since been renamed the Board of Directors of NDPHC and chaired by Vice President Mohammed Namadi Sambo.
Before the NIPP was suspended, $2.8 billion had been invested, and this figure included $1.78 billion in funded letters of credits which allowed some of the projectsto continue skeletally during the period of suspension.


Contracted commitments, however, amounted to $7.385 billion before the interruption of the projects.
Since the suspension of the NIPP was lifted, Nigeria’s power sector has witnessed unprecedented quantum of investments, with a lot of brand new projects completed and new generation capacity added to the national grid on a continuous basis.


It is widely believed by the stakeholders that if the two and a half years were not wasted in debating the political, legal and financial status of the NIPP, the country would have since realised the 4,774megawatts capacity target from the various power stations under the programme.
Period of Harvest


The NIPP dream, which was almost killed between 2007 and 2008, has become the backbone of the power sector as new projects are being inaugurated monthly bythe Niger Delta Holding Company (NDHC), owners of the NIPP, to boost the capacity of the Power Holding Company of Nigeria (PHCN).
Today, most of the 10 brand new power stations under the programme have almost been completed.


In fact, apart from the 225mw capacity Gbarain Ubie Power Station in Bayelsa State, where construction work has not progressed significantly because the contractor, Rockson Engineering Limited was said to be having site-related challenges, almost all the other NIPP plants are set to undergo test-running.
For instance, the test-firing of the 1,074mw capacity Alaoji Power Station in Abia State has been ongoing.


The 450mw-capacity Sapele Power Stationin Delta State has also been technically completed, with one of the gas turbines already running before inadequate gas supply interrupted the operation of the plant. The 750megawatt capacity Olorunsogo Power Station Phase 11 in Ogun State has also been completed.
The 561mw power station in Ikot Nyong, near Calabar, which is popularly referred to as the Calabar Power Station was scheduled to start operation by the end of March 2013 or the beginning of April.


However, the Site Manager of the Calabar NIPP, Mr. Paul Akinola, said for the plant tostart generating electricity as scheduled, gas would have to be sourced from United Cement Company (UNICEM), also in Calabar.
The 500mw capacity Omotosho Power Station Phase 11 in Okitipupa Local Government Area of Ondo State is also technically completed. The test-firing of the 450mw capacity Ihovbor Power Stationin Edo State is also ongoing.


German power giant, Siemens has also almost completed the construction of the 434mw capacity NIPP’s Geregu Power Station Phase 11 in Kogi State, with one unit running. The German firm had during the tenure of Obasanjo completed the firstGeregu plant of the same generating capacity for the PHCN.
Other NIPP power stations at the advancedstage of completion include the 338mw capacity Egbema Power Station in Imo State and the 250mw Omoku Power Plant in Rivers State.
However, only the Gbarain Ubie Power Station suffered protracted delay, being the only power plant across the country that was being built in an area that was four metres below sea level, while other power stations were sited on rocky terrain.
Since Gbarain was four metres below sea level, Rockson Engineering spent nearly two years removing the bad top soil; fillingthe site and compacting the sand to ensure a quality delivery.


So, the contractor was said to be having some specific site-related challenges, which was not the fault of the contractor orthe promoters of the NIPP.
Surprisingly, Gbarain Ubie plant, which hassuffered the worst protracted delay in construction, is the only NIPP power station and indeed the only gas-fired station in Nigeria where gas supply will not be an issue.


This is courtesy of a nearby $1billion Shell Petroleum Development Company’s Gbarain Ubie Integrated Oil and Gas Project that is currently ready to deliver more than enough gas to the plant.
To evacuate the power to be generated from the NIPP stations about 1,737 circuit kilometres of 330Kv lines and 940kilometres of 132Kv lines have so far been constructed as part of the transmission projects under the NIPP.



These transmission projects, which are split into 105 separate projects, include 40transmission lines, 45 transmission sub-stations, 20 sub-station extensions and telecommunication protection infrastructures to cover all NIPP power plants and transmission lots.
There are also ongoing and completed NIPP distribution projects in all the 11 Distribution Companies unbundled from the PHCN. Some of the distribution projects include 1,701 kilometres of 33Kv lines; 2,666km of 11Kv lines and 3,540MVA additional injection capacity.



It was also gathered that more than 22,598No. 25Kv and 50Kv distribution transformers, including Completely Self-Protected (CSP) transformers have also been provided under the NIPP.
Inaugurating the newly-upgraded Ikeja West Substation - 330/132KV in Ayobo area of Lagos, the Managing Director and Chief Executive Officer of the NDPHC, Mr. James Abiodun Olotu, stated that the country committed about $8billion in the establishment of the 10 power stations for the generation of additional 4,774mw. He also confirmed that the $8billion emergency power intervention project for the additional supply of 4,774 megawatts would be completed by the first quarter of 2014.


Olotu noted that the progressive delivery of the additional generation capacity was targeted to be completed by December 2013, but due to the involvement of a few high- tech customised equipment, the projects would spill over to 2014.
He said four out of the 10 stations had already been completed in Lagos, Delta, Ondo and Ogun States, all contributing about 1,500MW to the national grid.


The remaining six power stations which Olotu said were almost 90 per cent completed and scheduled for unveiling, would generate over 2,500mw. He noted that the NDPHC had made a commitment to Nigerians to deliver power by inaugurating a project every month across the country.


Recently, NDPHC also delivered eight distribution projects in South-east and South-South regions of the country. During the inauguration of the projects, Olotu saidNIPP projects were meant to provide improved power supply to all parts of the Country.


“We have said that this year will be a yearof bumper harvest with NIPP projects. No part of the country is left out, so we will continue to commission projects as they are completed in different parts of the country,” Deputy General Manager and Head of Communication & Public Relations, Mr. Yakubu Lawal, quoted Olotu as saying.
Lawal listed the projects completed and inaugurated in four states to include, 15MVA 33/11 distribution injection Sub-station in Uluku Edo State; and 7.5MVA 33/11 distribution substation each in Isele Uku and Illah in Delta states respectively.


Also inaugurated were,1x7.5MVA injection sub-station each in Orafite and Amichi in Anambra State; a 2x2.5MVA Eke distribution injection sub-station and 7.5MVA distribution injection substation in Trade Fair area of Enugu as well as 7.5MVA injection sub-station in New Heaven also in Enugu state.


There are also ongoing transmission projects in Asaba in Delta State; Awka in Anambra State; Ugwuaji and New Heaven in Enugu State.
Vice President Namadi Sambo has indeed directed the contractors handling various projects to hasten action to meet deadline of completing the projects on or before December 2013.


“2013 is the end year for all NIPP projects in the country. Nigerians must receive the power that we are able to generate and that is why you have been given this assignment,” he reportedly said.
As part of the project delivery strategy, Sambo has slated a pre-commissioning milestones meeting in his office, with NDPHC management, contractors and project consultants by this April.



Sambo had on January 26 meeting with the distribution and transmission contractors given them the end of June 2013 to deliver all distribution projects andDecember 2013 for all transmission projects.
For the NIPP, a lofty dream that was nearlytruncated, it is indeed a period of harvest of completed brand new projects for positive transformation of Nigeria’s power sector, subject to availability of power supply to fire the turbines.


http://www.thisdaylive.com/articles/accelerating-delivery-of-projects-a-period-of-harvest-for-nipp-/143840/

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