NCDMB, Bayelsa sign Power Purchase Agreement on 10MW IPP
The Nigerian Content Development and Monitoring Board, NCDMB, and the Bayelsa State Government signed have signed a Power Purchase Agreement, PPA, for the delivery of electricity from the 10 megawatts gas fired independent power plant constructed by the Board in partnership with the Nigerian Agip Oil Company at Elebele.
The PPA which was signed on Wednesday in Yenagoa, the Bayelsa State capital, by the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and the Attorney General and Commissioner of Justice of the State, Mr. Biriyai Dambo, was witnessed by the State Governor, Douye Diri.
Recall that the power plant which was commissioned alongside the 17 storey Nigerian Content Tower, NCT, by President Muhammadu Buhari on August 14, 2020 was conceived to supply uninterrupted electricity to the NCT and the Oil and Gas Park being developed by the Board at Emeyal 1, Ogbia Local Government Area of Bayelsa State.
It is therefore in a bid to maximize the power generated by the plant that the Board entered into an agreement with the Bayelsa State Government to supply uninterrupted electricity to key facilities of the state on charge as specified in the PPA.
Speaking at the event, Engr. Wabote said that the terms of the Power Purchase Agreement would ensure that the plant would operate on a sustainable basis with settlement of obligations to the gas suppliers, operation and maintenance contractors, purchase of spare parts and consumables required for timely maintenance.
“The power supply is not free as all users including NCDMB are expected to make a pre-payment deposit for their power requirements just as required by our gas suppliers. We were required to make a six month deposit with the Gas Aggregation Company Nigeria before we got gas supply to the power plant. We believe there will be no default from any party that will trigger an unpleasant outcome in the sustainability of the power plant operations,” Wabote said.
He described the occasion as a major milestone in the collaboration between NCDMB and the Bayelsa State Government, adding that the importance of reliable power supply to enhance the efficient operation of government activities cannot be over emphasized.
According to him, the event also provided inspiration to all Bayelsans that it is possible to provide reliable power supply to the entire state considering the abundant gas resources available in its domain.
Commenting on the agreement and NCDMB’s activities in the state, Governor Diri commended the Board management and other partners that made the agreement possible and charged the private investors to explore the abundant natural gas in the state, assuring that the government was ready to partner with such investors to make power and other amenities available to the people.
He noted that the state is blessed with abundant gas resources and other energy resources, which according to him, had been largely under-utilized. He stressed that his administration was determined to utilize the resources of the state for the benefit of the people.
By Sunday Elom N