fitzmayowa: If only other governor can take this kind of initiative...Naija for don improve wella

Fashola is working...Lagos is progressing


Eko oni baje ooo

bory09: which useless power generating plant are they building gon sef. 40 mega watt is too small for a two mikano generator to generate in the first place why are they still generating it in three sites. Oga o this acn people with their we are working mentality is getting stupidier day by day

Okija_juju: WASH!!!



Fashola wan build power plant in under 1 year.. na beans?~

ogb5: Fashola is the best !

I wish all those useless politicians can emulate our hardworking, resourseful and progressive Fashola.

Is it easy to generate 47.35MW of electricity? You people should praise our dear Fashola.

Lets put what he has done in simple mathematics so that the enemies of progress can see in clear terms what achievement we are talking about here.

These plants when completed in 1 year's time will generate a whole 47.35MW of Electricity
Lagos needs 10, 000 MW what of Electricity as at today.

47.32/10,000 *100% = 0.4735% of the requirement of Lagos. So these power plant will provide about 0.5% of the power requirement of lagos. Not a bad achievement by any measure, we only have 99.5% more to go.

Another good achievement is the speed at which the projects will be completed. Just one year.

If it takes only one year to complete 47.35MW project, at this rate, lets calculate how long it will take to complete projects that will generate the required 10,000 MW. Well that will be

10,000/47.35*1= 211 years

So in Two Hundred and Eleven yrs (211) only we would have been able to generate 10,000MW. Fashola is truely a wonderful legend.

Please tell all your governors to emulate Fashola, we will solve our power problems in only 211 yrs

Yeye dey smell

2kass: I wish every state in Naija is independent, walahi people go they queue for Lagos Visa..

Realdeals: Goodnews, the power sector requires liberalization and not privitization.

ogb5: Fashola is the best !

I wish all those useless politicians can emulate our hardworking, resourseful and progressive Fashola.

Is it easy to generate 47.35MW of electricity? You people should praise our dear Fashola.

Lets put what he has done in simple mathematics so that the enemies of progress can see in clear terms what achievement we are talking about here.

These plants when completed in 1 year's time will generate a whole 47.35MW of Electricity
Lagos needs 10, 000 MW what of Electricity as at today.

47.32/10,000 *100% = 0.4735% of the requirement of Lagos. So these power plant will provide about 0.5% of the power requirement of lagos. Not a bad achievement by any measure, we only have 99.5% more to go.

Another good achievement is the speed at which the projects will be completed. Just one year.

If it takes only one year to complete 47.35MW project, at this rate, lets calculate how long it will take to complete projects that will generate the required 10,000 MW. Well that will be

10,000/47.35*1= 211 years

So in Two Hundred and Eleven yrs (211) only we would have been able to generate 10,000MW. Fashola is truely a wonderful legend.

Please tell all your governors to emulate Fashola, we will solve our power problems in only 211 yrs

Yeye dey smell

ocelot2006:


Let's see......Fashola generates/promises to generate a meagre 10-50MW, and you folks sing his praise. Yet GEJ doubles the power generated across the nation (plus some), and all he gets for a job well done are insults and stupid critisms borne out of sheer hatred.....huh....ain't that strange..

[size=14pt]Pioneering Role of Lagos in Power Projects[/size]

02 Nov 2010

Being the first state to attempt to break the monopoly of the defunct National Electric Power Authority (NEPA), with the initiation of the Enron Power Project on August 1, 1999, coupled with the recent inauguration of a transformer manufacturing factory, Lagos State has maintained its pioneering role in power projects in Nigeria, Ejiofor Alike, writes

 

Enron Experiment

At the peak of the abysmal performance of the defunct National Electric Power Authority (NEPA), now Power Holding Company of Nigeria(PHCN), Lagos State under the then Governor, Asiwaju Bola Ahmed Tinubu, became the first state to attempt to break the monopoly of the ailing power giant by initiating a giant Independent Power Project(IPP).

On August 1, 1999, the Tinubu-led administration, Yinka Folawiyo Power Limited and Enron Corporation of the United States signed an agreement for an IPP, with the Federal Government as the guarantor.

The barge-mounted electricity generating plant was to be located adjacent to the NEPA’s Egbin Power Station, Nigeria’s biggest power plant.

 

The generating facility was originally designed to consist of nine barge-mounted combustion turbines with a total net output of 290megawatts of electricity.

The total investment in the business was estimated at $225 million with Enron controlling the majority shares, while Yinka Folawiyo Power Limited, a Nigerian conglomerate, owns the remaining shares in the venture.

By the terms of the agreement as presented by Lagos State, Enron was to generate the power and feed it into the National Grid, with NEPA as the operator that was to receive, transmit and distribute the power, while the State would designate destinations for power supply and market it to consumers.

 

The state was also to generate bills and pay the accrued revenue into an escrow account from which Enron could draw; while the Federal Government would provide project support, being the guarantor.

However, in January 2001, the AES Corporation announced that its subsidiary had acquired from Enron, a majority interest in the barge-mounted IPP.

AES, a leading global power company has generation, distribution and transmission infrastructure in Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela, Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic and El Salvador,

At the time of acquisition by AES, the barges were still under construction and commencement of commercial operations of the power facility was expected in September 2001.

 

AES was both manager of construction and plant operator; while electricity from the plant was to be supplied to NEPA under a 13.25 year power purchase agreement.

However, since inception, the project was mired in controversy as the state, NEPA and the Federal Government clashed over the implementation of the agreement.

The controversy peaked when Lagos State took the PHCN to the then Dr. Ransom Owan-led board of the Nigerian Electricity Regulatory Commission (NERC), over allegation of breach of supply agreement and wrongful invoicing of the state.

Lagos State had said in the petition to NERC that it had agreed to contribute 21.15 per cent of the Barge Power Purchase Agreement (BPPA) monthly bills on the condition that the power being generated by AES/Enron would be supplied solely to Lagos State.

 

According to the state government, further to the Contribution Agreement, on 14th November, 2000, it instructed the Federal Ministry of Finance to effect a direct debit of its statutory allocations from the Federation Account for the amount due as its contribution, to the capacity payments.

The state however, said that the instruction was to serve only as further security for payment of its obligations, under the BPPA and could only be effected if it failed to pay a valid invoice.

“In June 2001, the IPP began commercial operations and NEPA began to purchase capacity and energy under the BPPA.

‘However, in clear breach of the BPPA and the  spirit of the Contribution Agreement, NEPA failed and or refused to devote any or all of the electrical output of the IPP to customers in the areas designated in the BPPA submitted for its contribution by NEPA,” the state said.

 

Lagos State also stated that despite the breach of agreement, the Federal Ministry of Finance had continued to deduct its 21.15 per cent contribution from source.

All these show that there is no doubt about the viability and feasibility of the IPP project as envisaged by all the partners, including the Lagos State Government.

The project was viable, feasible and was delivered to meet not only specifications but also international standard.

Today, the AES project is supplying close to 230megawatts to the Egbin Thermal Station, from where the power is feed into the National Grid.

 

With this additional supply from AES, the total output from Egbin averages 800megawatts when gas is available.

The only issue under contentionwas that the power generated from AES was being transmitted to the National Grid for the use of the entire country, instead of only Lagos and this bordered on alleged failure by parties to honour contractual and business obligations.

Despite the controversy surrounding the Enron power project, the Federal Government still joined Lagos State to see the wisdom in breaking the monopoly of PHCN, hence the massive construction of power plants across the country and the planned privatisation of the ailing utility giant.

 

Transformer Manufacturing Factory

To maintain its leading role in power projects, Lagos State also became the first state to inaugurate a transformer manufacturing factory built by Elsewedy Electric Nigeria Limited, a subsidiary of Elsewedy Cables of Egypt.

The company, which has a capacity to produce 1,400 transformers yearly, is located at the Badagry end of the Lagos-Badagry Expressway in Lagos.

Speaking during the inauguration of the project, Governor Babatunde Raji Fashola stated that the factory would serve not only Nigeria but other countries in the west coast of Africa.

 

The Governor disclosed that the factory started producing transformers in February 2010, and also added that the transformers produced by the factory were already strengthening the state government’s rural electrification projects in the state.

“The idea behind this factory did not start today. As Chief of Staff in the last administration, I visited Egypt – I led a government delegation to cairo to start the negotiations. But we could not conclude and it was when I became Governor that we signed the Joint Venture agreement that gave us this project,” he said.

“Elsewedy is an African company. When I left Lagos in 2008 to go to Egypt, this was what I went to do with your time and with your money. Electricity does not fail in Cairo.

 

“This is the company that generates and manages the electricity of Cairo. It is an African company. They are not only in Cairo; they are in many parts of the Middle East and many parts of Africa. Let us deploy African solutions to African problems,” he explained.

The Governor, who added that what Lagos State had done was not a rocket science, stressed that in many other parts of the world, transformer manufacturing was a cottage industry, adding that the situation should not be different in Nigeria.

Special Adviser to the Governor on Commerce and Industry, Mrs. Olusola Senapon

Oworu, said the inauguration of the project accentuated the commitment of the state government to the industrial growth and economic prosperity of the state.

 

The Special Adviser noted that the task of bringing the project to fruition was her first major assignment from Governor, having received the mandate to liaise with Elsewedy Cables of Egypt in November 2007.

She disclosed that the project was a joint venture between the Lagos State Government, 5.26 per cent and the Egyptian firm, 94.74 per cent.

According to her, the inauguration of the project was another manifestation of the successful collaboration with the private sector in project implementation.

 

“That we are here to commission this project today is no doubt a testimony to the power of vision, the commitment to mission and a product of dedication and hard work by the state government and the Elsewedy Group. To the good people of Badagry, I congratulate you on this achievement. This, coupled with the ongoing expansion of the Lagos-Badagry Expressway, has positioned this culturally rich and historically relevant town for unprecedented growth in commercial activities,” she said.

 

Appeal to President Jonathan

To encourage his state as well as other states to boost local manufacturing of electricity distribution equipment, Governor Fashola also said he had written to the presidency for a downward review of tariffs on the components of transformers and other distribution facilities.

He said a downward review of the tariffs would strengthen the competitiveness of locally-manufactured transformers in the domestic market.

 

“This is to ensure that these transformers would not be more expensive than imported ones. This is the only way that local firms can grow. If the imported transformers are cheaper, then we will not promote local growth. I want to use this opportunity to appeal to the Federal Government to look favourably and kindly to our requests for a downward review of the tariffs on the imported components of these transformers,” he said.

Governor Fashola said a downward review of these tariffs was one of the ways the Federal Government could use its fiscal policies to promote growth.

The Governor, who also stated that he was waiting anxiously for a positive reply from the Presidency, noted that the measure would reduce unemployment in the country.

 

He said that there was still much work to be done in the area of distribution of electricity in the country.

According to him, the real difficult part of the electricity sector was the distribution end.

“The reality is that as we take steps to improve the stock of power generation in the country, the power that is eventually generated will have to be distributed to houses and consumers through cables, and transformers and measured through electricity metres in order to facilitate fair and proper billing,” he said.

The Governor noted that regular and efficient electricity remains the only missing infrastructure that was militating against the growth of the economy of this country.

He said the actualisation of the potentials of Nigerians and their freedom from poverty were also being hampered by irregular electricity supply.

Governor Fashola also noted that the unveiling of the roadmap on the power sector would provide opportunities for investors in the sector.

 

Conclusion

There is no doubt that the construction of captive power plants to cater for designated areas as envisaged by Lagos State in the Enron project is the panacea to the epileptic power supply in the country.

Heavy dependence on the single ‘almighty’ National Grid for electricity supply to all parts of the country has not only made electricity supply epileptic and abysmally mournful, but has also transmitted system failure in one area to all other areas that rely on the grid.

 

The current effort by President Goodluck Jonathan to break away from the past by encouraging states, local governments and the private sector to participate in electricity generation and distribution is viewed by analysts as a right step in the right direction.

Lagos State has successfully pioneered the involvement of states in power generation and distribution, and it is expected that other states should follow the examples of the State.

The Federal Government should therefore provide the incentives to encourage other states, Local Governments, as well as small and big businesses to generate power for their own use.

 

A downward review or outright removal of tariffs on the components of electricity distribution facilities and power plants, such as transformers and gas turbines is one of the ways that the Federal Government can boost the interest of other stakeholders in power projects.

All regulatory impediments such as the requirement for an operating licence from NERC for generation below 10 megawatts should be removed.

[size=14pt]AES Nigeria’s 270 Megawatt (MW) - IPP Project[/size]



The project is an Independent Power Project (IPP) that operates nine (9) barge-mounted gas turbines, producing 270MW of electricity.

AES Nigeria (a subsidiary) of AES USA was the project sponsor responsible for the implementation of the project.

US$12million was raised to fund the project from an international consortium of 4 commercial banks and 3 development institutions.

The project remains a joint venture between AES and YF Power Nigeria.

AES has an option to follow through this project with a 540MW IPP in Marogbo, Badagry.

[size=14pt]Akute Power Project (12.15 Megawatt) - IPP for the Lagos State Water Corporation.[/size]




The Akute Power Project provides a total capacity of 12.15 MW by using four 3 MW GE Jenbacher gas engines.

A 13km natural gas pipeline was connected to the existing natural gas infrastructure.

The project cost US$25.5 million and spanned a 12-month construction period.

The Power plant commenced operations in December 2009.

Key stakeholders are:

 

Lagos State Water Corporation - Power Off Taker

Clarke Energy - EPC Contractor

Oando Gas & Power (OGP) - Promoter

Finance arranger - OGP

NGC/Gaslink - Gas supplier

Lagos State Government - Financial guarantor

[size=14pt]Fashola Demands Refund Of N16 Billion Illegal Deductions On Power By FG[/size]

by oyb(m): 3:24am On Jul 12, 2012

http://www.channelstv.com/home/2012/07/10/fashola-demands-refund-of-n16-billion-illegal-deductions-on-power-by-fg/

The governor of Lagos State, Mr. Babatunde Fashola on Tuesday called on the Federal Government to refund the N16 billion deducted from its allocation from the Federation Account over its investment in power.

Claiming the nation’s economic capital has been unjustly treated in the on-going privatization exercise, especially, when it comes to privatization of assets. The governor asserted that if the nation must make a success of the privatization exercise in the Power Sector, it must start from Lagos

Mr Fashola made the lamentation about the alleged plight of the state while playing host to the members of the Senate Committee on Privatization which paid him a courtesy visit.

Explaining the genesis of the N16 billion illegal deductions, the governor explained that the state government invested in power plant, yet the power was not dedicated to Lagos, “but they (FG) have deducted about N16billion of our money in spite of court orders.” “Now, we get punished for taking the initiative” he added.

“There is a standing liability to us by the PHCN, the illegal deductions of N16 billion for power that we did not get, for the power that other states used. Now, those are issues of social and economic injustice that must be resolved before we can even have a successful privatization exercise. We are in court and there is arbitration”, the Governor said adding that he has written to the National Assembly to say that those are “red flakes to the successful completion of the exercise.

The governor however warned that as much as the state government supports the privatization exercise, if the money was not refunded, it would constitute clogs to the successful execution of the exercise.

Noting that the debt would be part of the due diligence obstacles for any concessionaire to cross, Governor Fashola warned, “If our money is not paid, clearly there will be issues of financial caution, I can tell you that”, calling on the Committee to persuade the National Assembly to make appropriation to refund the N16 billion to Lagos State.

“”It is no longer a question of who is right and who is wrong. The impact of Power to the National Economy is more than N16 billion”, the Governor said, adding, “Now, if the PHCN workers that went on strike at the onset of Power Reforms were paid, why should we not be paid because we did not go on demonstration; we are being civil”.

Governor Fashola insisted that for the privatization of the Power Sector to be successful, “We must put our best foot forward in Lagos because the Power demand is here, the Power assets is here”, warning that if the Federal Government should put on the attitude of “we can do it without them”, there would be problems ahead.

“Most of the distribution assets are here, we have invested in transformers, feeder pillars, poles, cabling and others. Those are the distribution assets any concessionaire is going to use. We have a transformer manufacturing company in Lagos where we are producing transformers and distributing to communities”, the Governor said pointing out that so far the electricity regulatory company has come to inspect the assets.

Noting that there is a provision in the Constitution that allows states to distribute power in areas not covered by the National Grid, Governor Fashola said such areas were not defined and called on the Committee to take up the task to legislate on such issues so that concessionaires and private investors would know which areas to invest in distribution.

The Governor also called on the Committee to assist to create “Greenfield Power Distribution Companies” saying they would act as backups for the 11 distribution companies carved out of the PHCN.

“It is not enough to say that the 11 distribution companies carved out of the PHCN are the only ones because if you look at the NITEL story, it was the Greenfield telecommunications companies that ultimately baled us out of our problem. So we must have Greenfield distribution companies that carry no baggage.

Federation’s orphan

“We have been given the short end of the stick consistently. Given our contribution to the national economy, there has been no reciprocity. Our assets and our lands have been servicing the nation; these lands were there before they were acquired by the Federal Government for government business and we are saying, if they are no longer serving government business we are supposed to take our land back”, the Governor said.

Describing it as social injustice, Governor Fashola said Lagos State has been “the orphan of the entire Federation”, adding that the Federal Government took the State’s assets and gave nothing in return in spite of the fact that the State contributes the highest quota to the Gross Domestic Product (GDP) of the country.

Earlier, in his opening remarks, Chairman of the Committee said the Committee was in Lagos to inspect the Egbin Thermal Station in Ikeja and the Eko Business District as part of its oversight functions on the processes for the Privatization of the Power Sector.

According to Senator Obadara, the Committee paid a courtesy call Mr. Fashola with a view to interface with the State Government on areas of mutual interest in the drive towards improvement in the Energy Sector and to appreciate efforts made by the state government in the Independent Power Project scheme.

ocelot2006:


Let's see......Fashola generates/promises to generate a meagre 10-50MW, and you folks sing his praise. Yet GEJ doubles the power generated across the nation (plus some), and all he gets for a job well done are insults and stupid critisms borne out of sheer hatred.....huh....ain't that strange..

hopilo: THE Lagos State Government has unveiled plans to raise the number of Independent Power Plants (IPPs) in the state to five, with a combined capacity of 47.35 Mega Watts (MW) by 2014

This is nothing but noise making by ignorant people. We need 50,000 megawatts of power in Nigeria to have uninterrupted power, Lagos alone need over 10,000 mega watt which one correct power plant can produce that. Not these 47.35 MW gas turbine generator we make noise about. I work in a company were the power requirement offshore is 4050kilo watt of power, we get that from on small gas turbine in the generator room. To get 10,000 mega watt is just to increase capacity, not a rocket science.

ogb5: Fashola is the best !

I wish all those useless politicians can emulate our hardworking, resourseful and progressive Fashola.

Is it easy to generate 47.35MW of electricity? You people should praise our dear Fashola.

Lets put what he has done in simple mathematics so that the enemies of progress can see in clear terms what achievement we are talking about here.

These plants when completed in 1 year's time will generate a whole 47.35MW of Electricity
Lagos needs 10, 000 MW what of Electricity as at today.

47.32/10,000 *100% = 0.4735% of the requirement of Lagos. So these power plant will provide about 0.5% of the power requirement of lagos. Not a bad achievement by any measure, we only have 99.5% more to go.

Another good achievement is the speed at which the projects will be completed. Just one year.

If it takes only one year to complete 47.35MW project, at this rate, lets calculate how long it will take to complete projects that will generate the required 10,000 MW. Well that will be

10,000/47.35*1= 211 years

So in Two Hundred and Eleven yrs (211) only we would have been able to generate 10,000MW. Fashola is truely a wonderful legend.

Please tell all your governors to emulate Fashola, we will solve our power problems in only 211 yrs

Yeye dey smell

naptu2: I don't think many people understand what's going on.

1) In 2001 the Lagos State Government set up the Enron/Aes Barge project (the first IPP done by a state government in Nigeria). The AES barge generates 211 MW of electricity. The project was done in conjunction with AES/Enron and Yinka Folawiyo Power Company.

2) The Obasanjo Administration did everything it could to frustrate this project. Initially, Nepa refused to guarantee the project. Remember, the law at the time did not allow Lagos to generate, transmit or distribute electricity.

3) The agreement between Nepa and LASG was that about 50% of electricity produced in the barge will be distributed in Lagos. This agreement was not honoured. Electricity generated on the barge is simply fed into the national grid.

4) The Lagos State Government is still being billed for the project, even though Nepa did not keep to its side of the agreement.

5) The government decided to explore other options to ensure that Lagosians have electricity. It wouldn't establish IPPs again, because the electricity generated would be fed into the national grid, rather than prioritising the needs of Lagos.

6) The government, in conjunction with El-Sewedy, an egyptian company, decided to produce equipment. They produce transformers, metres, etc. This is done to reduce blackouts caused by poor distribution equipment.

7) The government also decided to take Lagos State Government facilities off the national grid, in order to reduce the load borne by the national grid in Lagos (and thus increase the quantum of electricity that's available to Lagosians). It also decided to launch an electricity conservation campaign.

The Island Power Project was set up. The Island Power Plant powers General Hospital Marina, Island Maternity, Lagos High Court Igbosere, Magistrate Court Igbosere, Lagos House Marina and several schools and street lights on the Island. Power plants were also built to take the Iju and Adiyan waterworks off the national grid. More plants are planned to take Lasu and other state government facilities off the grid.

9) LASG was excited when the FG decided to privatise Nepa. It bidded for the Eko Distribution Company, but did not win. This means that LASG is still not allowed by law to sell electricity directly to Lagosians. The LASG decided to continue its policy of taking LASG facilities off the national grid.

theoctopus: @naptu, I respect your unbiased approach to this forum most times but with all due respect, the Enron project was a major scam by Tinubu. It was never designed to produce any power. It was simply an avenue to syphone and embezzle major funds just like the Lekki concession road. The whole Enron badge shipment to Lagos was a fraud. I will engage you on that if you want me to.

ogb5: Fashola is the best !

I wish all those useless politicians can emulate our hardworking, resourseful and progressive Fashola.

Is it easy to generate 47.35MW of electricity? You people should praise our dear Fashola.

Lets put what he has done in simple mathematics so that the enemies of progress can see in clear terms what achievement we are talking about here.

These plants when completed in 1 year's time will generate a whole 47.35MW of Electricity
Lagos needs 10, 000 MW what of Electricity as at today.

47.32/10,000 *100% = 0.4735% of the requirement of Lagos. So these power plant will provide about 0.5% of the power requirement of lagos. Not a bad achievement by any measure, we only have 99.5% more to go.

Another good achievement is the speed at which the projects will be completed. Just one year.

If it takes only one year to complete 47.35MW project, at this rate, lets calculate how long it will take to complete projects that will generate the required 10,000 MW. Well that will be

10,000/47.35*1= 211 years

You said it all. Mumu achievement

So in Two Hundred and Eleven yrs (211) only we would have been able to generate 10,000MW. Fashola is truely a wonderful legend.

Please tell all your governors to emulate Fashola, we will solve our power problems in only 211 yrs

Yeye dey smell