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FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement - Politics - Nairaland

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FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Blue3k2: 4:38pm On Jan 10
Ndubuisi Francis in Abuja

The Federal Ministry of Finance has provided counter guarantees for a power purchase agreement (PPA) to Kano State for the purchase of electricity to be generated by the 540 megawatt (MW) Qua Iboe Power Plant (QIPP) in Akwa Ibom State
The Minister of Finance, Mrs. Zainab Ahmed, who conveyed government’s approval, said “We are looking at this as a pilot project as this will help mitigate federal government’s plan.”

According to a statement by her media aide, Paul Ella Abechi, the ability to provide a counter guarantee would go a long way to reduce the burden on the federal government.
While soliciting the federal government’s guarantee, the Kano State Governor, Dr. Abdullahi Umar Ganduje had in a proposal to the minister dated January 7, 2019 highlighted the understanding reached with other partners in the project.

According him, QIPP has secured the firm commitment of equity funding of $350 million from Globeleq and project finance of $850 million from the International Finance Corporation (IFC), OPiC and African Development Bank (AfDB) for the construction of a thermal power plant located in Qua Iboe in Akwa Ibom State with a capacity of 540MW.
He said, “This funding is conditional upon the guarantee of your Ministry for a power purchase agreement (PPA) to be executed between QIPP and the Nigeria Bulk Electricity Trading Company (NBET) and further backs by a Partial Risk Guarantee issued by the World Bank.

“Exxon-Mobil is also prepared to commit about $500 million to build a gas pipeline from its deep off-shore platforms to supply the gas needed for QIPP to operate, thus bringing total Foreign Direct Investment (FDI) for this project alone to $1.7 billion. QIPP has also assumed completion risk of a transmission line from Ikot-Abasi to Ikot-Ekpene in order to ensure supply of power to the national grid.

“The Managing Director of the Transmission Company of Nigeria (TCN) has given firm assurance that once power is delivered to Ikot Ekpene, TCN will be able to deliver an equivalent amount of power to Kano on a binding contractual basis for a fee. TCN will assume full liability for power delivered to the grid and not transmitted as contracted,” he said.
The TCN chief executive, Ganduje said, has further confirmed that, based on already approved funding from development partners, TCN will be technically competent to do this before QIPP starts generating power, adding that the transmission lines from Shiroro to Kaduna “and from Kaduna to Kano will be fully operational with enhanced capacity within two years from commencement of project.”

“We further understand that, the country is at risk of losing this huge investment of $1.7billion because of the reluctance of the federal government to assume additional unhedged financial risk on the power sector given the current experience with Azuru and other players,” Ganduje added in the January 7, 2019 letter to the minister.

Speaking when she received the governor in Abuja Tuesday, the minister conveyed the approval of the federal government to guarantee the power purchase bid by Kano.
She said: “Let me assure you that it is not an issue of if this project will take place but when, because we have a very huge power gap and it is more in the northern part than in the south. And when we see an opportunity like this, we have the responsibility to ensure it comes into fruition.”
“We are looking at this as a pilot project as this will help mitigate federal government’s plan. The ability to provide a counter guarantee will help a long way to reduce the burden on the federal government,” Ahmed


She added that it will help to improve the industrialisation plan, growth, employment generation for the state. I want to make a commitment that the ministry of finance will put up our best efforts to make it a success. I hope at the end of the day it will be on record that during my tenure that I contributed to the industrialisation of Kano.”


Source: https://www.thisdaylive.com/index.php/2019/01/08/fg-guarantees-540mw-kano-qipp-power-purchase-agreement/amp/

6 Likes 2 Shares

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by MarcC: 4:50pm On Jan 10
He he... I carry first today.. Sirchimarc

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by philips007(m): 4:50pm On Jan 10
Ok
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by iamJ(m): 4:51pm On Jan 10
buhari



4+4

noticed of late
certain mods on this forum are Pro PDP

the way nairaland is constantly attacking our precious APC lipsrsealed


if they close down this forum, they will say buhari is bad, you have to be Apolitical as a public platform, what operators of this site are doing is very wrong

facebook admins hate trump but they wouldn't prioritize news about clinton over him because they hate him, they stay Apolitical

8 Likes 3 Shares

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Edodefender(m): 4:52pm On Jan 10
Lies
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by ikpeamanam: 4:52pm On Jan 10
Nice one

3 Likes 1 Share

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by KOLLYPROF(m): 4:53pm On Jan 10
How will this project circulate
That's my concern
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by solihu(m): 4:55pm On Jan 10
iamJ:
buhari



4+4

Na so!

2 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by otuekong1(m): 4:55pm On Jan 10
iamJ:
buhari


4+4
mumu dummy,qua iboe power plant was built by akwa ibom state govt

3 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by krattoss(m): 4:56pm On Jan 10
Is this power plant only for kano people or for Nigeria in general?

2 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Blue3k2: 4:57pm On Jan 10
Alright thats good for them. In another article it started Kano is settng up Kano State Bulk Electricity Trading Company (KBET) to buy all the power. Basically Kano and neighbouring states will get more power.

This win win solution for kano and company and Akwa Iboms economy. Akwa Ibom could've jumped on this opportunity but I'm guessing they rather upgrade the state power plant at some point.


“Honourable Minister, in order to show our commitment to the project, we shall set up Kano State Bulk Electricity Trading Company (KBET) which will buy all the power generated by QIPP from NBET in the form of a back-to-back Power Purchase Agreement (PPA).

Read More at: https://leadership.ng/2019/01/08/fg-approves-kanos-540mw-electricity-project/

“To this end, we welcome the opportunity offered to us by QIPP to have guaranteed stable supply of 540MW of electricity. We trust this will support the industrialisation of Kano and perhaps even neighbouring states (like Kaduna, Jigawa and Katsina) which have significant and critical unmet requirements for electricity.

Read More at: https://leadership.ng/2019/01/08/fg-approves-kanos-540mw-electricity-project/
Read More at: https://leadership.ng/2019/01/08/fg-approves-kanos-540mw-electricity-project/

FriendNG

2 Likes 1 Share

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by shachris02: 4:58pm On Jan 10
iamJ:
buhari



4+4

noticed of late
certain mods on this forum are Pro PDP

the way nairaland is constantly attacking our precious APC lipsrsealed


if they close down this forum, they will say buhari is bad, you have to be Apolitical as a public platform, what operators of this site are doing is very wrong

facebook admins hate trump but they wouldn't prioritize news about clinton over him because they hate him, they stay Apolitical

did you read the article at all?

3 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by iamJ(m): 4:59pm On Jan 10
shachris02:


did you read the article at all?
not talking about this article, talking about most topics that end up at the front page

1 Like 1 Share

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Fhemmmy: 5:01pm On Jan 10
Why don't they provide this before the election, all these promises and guarantees that hold no ground . . . .
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Blue3k2: 5:01pm On Jan 10
Edodefender:
Lies

You're woefully ignorant.
krattoss:
Is this power plant only for kano people or for Nigeria in general?

Its kano and neighbouring states. Kano is buying the power.

“To this end, we welcome the opportunity offered to us by QIPP to have guaranteed stable supply of 540MW of electricity. We trust this will support the industrialisation of Kano and perhaps even neighbouring states (like Kaduna, Jigawa and Katsina) which have significant and critical unmet requirements for electricity.

Read More at: https://leadership.ng/2019/01/08/fg-approves-kanos-540mw-electricity-project/

Fhemmmy:
Why don't they provide this before the election, all these promises and guarantees that hold no ground . . . .

The plants not built yet. How would that be possible?

1 Like 1 Share

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Topmaike007(m): 5:02pm On Jan 10
.
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by InaNla: 5:02pm On Jan 10
Lies from the pit of hell
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by tiredoflife(m): 5:03pm On Jan 10
grin grin tomorrow una go say aboki no get sense
Generate power for south
Carry am go kano
Yet the south is in total darkness
Nigeria is a real estate to the northerners
We are just occupying space down south
If they have their way dem for push us into the Atlantic ocean

5 Likes 1 Share

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by SaiAtikuTill203: 5:05pm On Jan 10
If Nigerians are not hypocrites, APC & PDP are the same, if PDP are thieves then APC are armed Robbers, if PDP are criminals then APC are terrorists, if PDP are corrupt then APC are lucifers... *just tell me the differences between APC and PDP Governors and Ministers.*
If Nigerians are not hypocrites, why are we supporting Baba to neclect ASUU, even if ASUU have faults yets we are the end-victims. What has change since 2015 on *Education, Health, Social welfare, Transportaion & local security?.*
-Let's learn to say the truth especially on issues that affect our *lives, governance and collective affairs.* Nobody can brainwash me into believing things that all of us know were political lies aimed at continuous domination of the people.
-Buhari is human, can make mistakes. He is sorrounded by both good and bad, selfless and selfish, transparent and corrupt people, why then are we acting as if he is God? when *Insecurity, systematic corruption, poor condition and selective prosecution* are like Jonathan Era.
Say, think and do what you feel is right, but *because many will never forgive him for his inability to truly protect the people.* Many people have paid & are still paying Millions of Naira as Ransom to Kidnappers, *will Buhari compensate them?,* since he cannot provide adequate security?.
-We voted him because we thought he is better than Jonathan, but he allowed the *Tinubus, Osinbajos, Fasholas* and others to be control him Indirectly. He is no more the *"Action GMB"* mos

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by ITbomb(m): 5:06pm On Jan 10
That's how a restructured Nigeria would work if allowed.

States can develop on their own and if able, enter into partnership with another state

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Cowbuhari: 5:10pm On Jan 10
Air Nigeria loading

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by krattoss(m): 5:11pm On Jan 10
And over here.Enugu distribution commission is toying around giving us half chop embarassed grin[center][/center] angry

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by OkaNaUbe(m): 5:24pm On Jan 10
cheesy Voom Vaaam!

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by darfay: 5:27pm On Jan 10
Blue3k2:
Alright thats good for them. In another article it started Kano is settng up Kano State Bulk Electricity Trading Company (KBET) to buy all the power. Basically Kano and neighbouring states will get more power.

This win win solution for kano and company and Akwa Iboms economy. Akwa Ibom could've jumped on this opportunity but I'm guessing they rather upgrade the state power plant at some point.






FriendNG


Please what does Akwa ibom state government and people stand to gain from this agreement
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by tempest01(m): 5:32pm On Jan 10
Decentralize this national grid nonsense. There is no light in Akwa Ibom, but we are generating enough to handle our power problems, but sending to kano.

2 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by darfay: 5:32pm On Jan 10
tiredoflife:
grin grin tomorrow una go say aboki no get sense
Generate power for south
Carry am go kano
Yet the south is in total darkness
Nigeria is a real estate to the northerners
We are just occupying space down south
If they have their way dem for push us into the Atlantic ocean


The plant is even owned by emir of Kano
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Codes151(m): 5:36pm On Jan 10
And we no get light

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by tiredoflife(m): 5:37pm On Jan 10
darfay:



The plant is even owned by emir of Kano

Yeah so is the gas coming from the Niger delta
Who pass u pass u
Stop trying to be half smart
How did the emir get money to own such project
Abi as CBN governor dem dey pay am in billions
Let's keep fooling ourselves down south
While they share Nigeria as a real estate

2 Likes

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Blue3k2: 5:39pm On Jan 10
darfay:



Please what does Akwa ibom state government and people stand to gain from this agreement

The agreement means the company is making money. Which means taxes revenue for company. The tax revenue will be used to fund state.
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Banmeallday: 5:40pm On Jan 10
ITbomb:
That's how a restructured Nigeria would work if allowed.

States can develop on their own and if able, enter into partnership with another state


Don’t be deceived by propaganda..Nigeria is a Fulani emirate......courtesy of England

1 Like

Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by Okoroawusa: 5:51pm On Jan 10
krattoss:
Is this power plant only for kano people or for Nigeria in general?
Kano state wants to purchase power from Qua Oboe Power Plant n the plant owners n foreign technical partners want a guarantee financial backing from FG n that is what the minister has just approved.


Another interested state can do same.


Do u understand it now?
Re: FG Guarantees 540mw Kano-Qua Iboe Power Plant Power Purchase Agreement by MrBONE2(m): 5:53pm On Jan 10
tiredoflife:
grin grin tomorrow una go say aboki no get sense
Generate power for south
Carry am go kano
Yet the south is in total darkness
Nigeria is a real estate to the northerners
We are just occupying space down south
If they have their way dem for push us into the Atlantic ocean

grin

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