4000 Mw Gas Plant To Be Built In Nigeria

By Chika Amanze-Nwachuku

Federal government’s bid to ensure regular power supply has received a boost as Sparkle Energy has said it planned  to build a $10 billion 4000 Gas-fired Power Plant called Sparkle Power Plant, which is to become the largest gas-fired power plant in Nigeria.
Making the disclosure in a document made available to THISDAY, Groot Property Group Ltd said it floated the firm (Sparkle Energy) in partnership with some prominent Nigerian entrepreneurs and scholars based in the United States,  and a Nigerian consortium for the development of the power project. The company said the project, with a construction budget of $10 billion was designed to sufficiently power up to 5 million homes in Nigeria.

Nigeria, with a population of about 155 million produces more than 22 billion of KWh and consumes more than 20 billion KWh, with a surplus of about 2 billion KWh of electricity, the company said.

The Chief Executive Officer of Sparkle Energy, Julius Gbayange, said:  "Every well-meaning Nigerian understands the importance of clean, safe and constant power supply. This is the core of the development of our nation's economy because it addresses the question of industrialisation and the current high rate of unemployment. And we are glad that under this oriented Groot Property Group's technical mentorship and planning management, this power project is going to help rid Nigeria this illness. This is a new dawn for Nigeria.”
The consortium also seeks to form a partnership with the federal government of Nigeria for the development and realisation of Sparkle Power Plant.

"Obviously, Groot Property Group (Pty) Ltd will only hold 15percent stake in Sparkle Energy Ltd, while the Nigerian consortium will hold 37percent and 25percent stake is reserved for the Nigerian Central Government, while the difference of 23percent will be reserved for our future investors and partners. So, this is a development project by the Nigerians for the Nigerians and for the Government of Nigeria”, Chief Economist and VP Development Operations of Groot Property Group (Pty) Ltd, Simon Kapenda  said.

"By 2016, Nigeria will become Africa's largest economy surpassing South Africa. However, Nigeria's industrial development lags far behind of South Africa, due to the country's infrastructure maintenance and management. And until Nigeria fixes some of these issues, South Africa will always be the leading and powerful economy in Africa due to its massive industrialisation and well-maintained infrastructure", he added.

Sparkle Energy Ltd also seeks to help repair and fix the current electricity infrastructure in Nigeria. The company said preliminary research revealed that in Nigeria, there might be certain people who constantly sabotage purposely the country's electricity power lines in order to help increase the sale of personal electricity generators in the country.

Said Kapenda:  "There are currently laws in place against the sabotaging of power lines by anyone but these laws have little or are not entirely enforced. What we hope to do is to ask the Central Government to look into this senseless act of vandalism, which is only pushing down the vast development of our country's economy.”

Under the agreement, the government is expected to finance the start-up costs for the predevelopment of Sparkle Power Plant, which is $50 million. Then, with the guarantee of the government and Offtake Agreements in place, the company said it expected to raise the needed $10 billion to fund the project through a combination of debt and equity through a network of Development Finance Institutions (DFIs) with a mandate to fund projects in developing countries.

The DFIs include DFIs include Industrial Development Corporation of South Africa Limited, Development Bank of Southern Africa Limited, IFC and African Development Bank, as well as certain export credit agencies like the Export Credit Insurance Corporation of South Africa (Pty) Ltd (ECIC) and export facilitation banks like the Export-Import Bank of China and other commercial banks.

The preliminary development for Sparkle Power Plant is expected to be completed by mid-December 2011. Thereafter, the company expects to select the EPCM Contractor for the engineering, procurement and construction management (EPCM) of Sparkle Power Plant. The technical, engineering and construction is expected to start in mid 2012 and to make Sparkle Power Plant ready for commercial operation by the end of 2016.

http://www.thisdaylive.com/articles/firm-to-build-4000mw-power-plant/101292/

What do you think about this?  White elephant or will it help the people?  It is supposed to be finished by 2016 which is a long way away,

Your new emoticons are hilarious

Reminds me of whack-a-mole for some reason

Hahahaaa, Kobojunkie

Your emoticon should be on Flog It.


You be case ooo

white elephant. . .first, where is the surplus electricity they're talking about? abi I'm the one misunderstanding the grammar

I dont have nearly enough experience at the level that govt takes such decisions but somehow I have a feeling that the people behind this deal are people that dont understand the power sector.

No be by mouth dem dey build power plant. . .make them sort out the regulations first.

Kobojunkie:

wetin dey do u sef

@ topic

another WEP (White elephant project)

Just 4000?

People dey suffer in that hell hole sha. No wonder everi bodi dey come on NL to feed on each other for self consolation (even tho some of us do it for the phun).

It's good to be a Canadian.

Power stations take a long time to build. 2016 is just imaginative.

Kobojunkie:

Lmao!

says everything on my mind!

Another "to".
Keep the plan to yourself, when the plant is built and producing, come back, we ll clap for u.

When i start seeing 3hours uninterrupted supply of power, i would start believing but for now, This na Gimmicks

It is only in this country that faceless firms deceive the persuasion of the average Nigerians. Another Extreme/Pure White Elephant Project that will not even takeoff. Because we are die in need of power, that every nick and harry will come out to foolishly tell Nigerians that he want to build a power plant. In fact I will, no I am building a 50,000MW plant in my backyard . arrant nonsense.

The preliminary development for Sparkle Power Plant is expected to be completed by mid-December 2011. Thereafter, the company expects to select the EPCM Contractor for the engineering, procurement and construction management (EPCM) of Sparkle Power Plant. The technical, engineering and construction is expected to start in mid 2012 and to make Sparkle Power Plant ready for commercial operation by the end of 2016.

You mean we have to wait till 2016 before we get additional 4000Mw.

this is NOT a white elephant.

that would be insulting elephants

this is a sparkling FANTASY.

Question : how many plants have these guys built before.

really there is no need to get an erection over a bowl of fufu

[size=15pt]The emoticon needs a 4000 Mw shock.[/size]

We all know that our government is useless at completing projects. It is upto us citizens to ensure that it is started and completed.

Track record, please? How many gas plants have these "Sparkle" guys built?

HNosegbe:

Track record, please? How many gas plants have these "Sparkle" guys built?

They are a start up company.

federal govt / P Square Song Reloaded  
' if you plan you i Plan you  Man no go Vex'
' step on the embezzle floor Man no go Vex'
' touch me i slap you Man no go Vex (3times )  

I saw the article yesterday - unadulterated rubbish. It is likely just another scheme to siphon money from the government.

Their 'chief economist and VP' is still a PhD Candidate and is proudly using the title already. . . .I've never  seen anyone use PhD Candidate as a title except in an academic environment, and definitely not as an official title.

Why on earth does the government have to finance the $50m take off costs? That money will be stolen and spent and there will be no power plant built.

No talk of what electricity tariffs they will need to make the project economical, no mention of their own funding contribution, no mention of where the plant will be located, where the gas will be sourced from and whether it has been secured or not.

All they want is $50m of the govt's money to steal. A company less than a year old with zero experience in building power plants wants to build a 4,000MW station.

I am with dgr8truth  - I'm going to build a 200,000 MW power plant using tribal bashing energy from nairaland.

After obtaining the license, they will go back home and do nothing.

Utter trash. 

Dont these people understand that if they actually did the job properly they would earn more in the long run!!!

Why are we so stupid in Nigeria?

LadyT:

Utter trash. 

i could not agree with you more
a start up company wanting to build one of the biggest gas power plants ever built.
a start up company wanting to start up with a $10 billion project in one of the worst places to do business on earth .
honestly i think this thread should be closed and i am really disappointed it is on the front page.
nigeria will host the football world cup and olympics before this happens

this is just fantasy and falsehood.

the article uses the expression "the agreement" and "government"which agreement with whom,which government. is there a named government official involved.

This site is another example of the stupidness of Nigerians.

I guess since the site owner is earning good money from the site he has decided to let any trashy topic appear on the front page!
Its either that or someone he has employed to look after the site needs sacking.

Kobojunkie:

mount close.

Sparkle Energy Ltd also seeks to help repair and fix the current electricity infrastructure in Nigeria. The company said preliminary research revealed that in Nigeria, there might be certain people who constantly sabotage purposely the country's electricity power lines in order to help increase the sale of personal electricity generators in the country.

Said Kapenda: "There are currently laws in place against the sabotaging of power lines by anyone but these laws have little or are not entirely enforced. What we hope to do is to ask the Central Government to look into this senseless act of vandalism, which is only pushing down the vast development of our country's economy.”

Unless the bolded is tackled we will perpetually remained in darkness in Naija. What annoys me must is that the people in the position to stop that are the culprits.

I learnt that the Emir of Kano has upto 40% shares with MIKANO Generators. Now tell me if this heediot will ever want a stable power in Nigeria.

Beaf!:

Unless the bolded is tackled we will perpetually remained in darkness in Naija. What annoys me must is that the people in the position to stop that are the culprits.

I learnt that the Emir of Kano has upto 40% shares with MIKANO Generators. Now tell me if this heediot will ever want a stable power in Nigeria.

We neeed to ocupy Nigeria until they stop doing this bull. Instead of invest in generators to benefit themselves, they should invest in power plants to benefit everybody AND theirselves. This is so frustrating about Nigeria. Liba has more power than us with only 6 million people.

Beaf!:

Unless the bolded is tackled we will perpetually remained in darkness in Naija. What annoys me must is that the people in the position to stop that are the culprits.

I learnt that the Emir of Kano has upto 40% shares with MIKANO Generators. Now tell me if this heediot will ever want a stable power in Nigeria.

This is an old wives tale - even if you eliminate sabotage 100%, the power generation is still grossly inadequate and the system losses due to inefficiencies make the actual available power even less.

The prime issues are increasing power generation and upgrading the transmission and distribution systems. Whatever sabotage is allegedly going on is not even close to 10% of the problem.