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Oando Launches First Independent Power Plant
- IPP to Boost Water Provision in Lagos
- To save Lagos State $3.9m Annually on Energy Cost
Oando PLC, Nigeria’s largest indigenous energy group, announced that it has commissioned its first Independent Power Plant (IPP), Akute Power to supply stable electricity to the Lagos Water Corporation (LWC). The 12.15 megawatt plant will power LWC’s main water intake facility, including two other facilities with a combined installed capacity of 125 million gallons of water per day. The $25.5 million project was finance by Fidelity Bank, one of Nigeria’s leading financial institutions.
The Power project included the construction of a 13km gas pipeline from Oando’s existing natural gas grid in Lagos to supply fuel to the power plant. The gas fuelled IPP is eco-friendly and enabled an immediate increase in capacity utilisation of Lagos Water Corporation whilst creating substantial savings for the Lagos Water Corporation in annual energy cost.
In ensuring smooth project delivery, Oando mobilised local and international resources with Clark Energy – a leading UK energy company- providing the reliable General Electric Jenbacher natural gas engine generator packages.
Speaking at the commissioning, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said; “This IPP is a significant milestone for Oando, marking our entry into the Nigerian power sector and another major step in the development of our mid- and down-stream business. Our power generation strategy has always been clear – to contribute several captive power plants to Nigerian markets to boost electricity supply and help meet the huge and rapidly growing demand for power for local industry. Our objective is to redefine how energy is accessed in Nigeria and Africa. We will continue to build world class energy platforms that support industrialisation and economic development.”
Also commenting during the inauguration of the facility, Mr. Babatunde Fashola, the Executive Governor of Lagos State, said, “This project is a classic example of how public private partnerships can benefit the people: It means that by shifting from diesel to gas, we are saving 27 per cent of our energy cost to provide water, which translates to about $11,000 of taxpayer’s money daily and $3.9 million annually.”
Bolaji Osunsanya, Chief Executive Officer, Oando Gas and Power said, “This project is a testament of Oando’s continuous improvement in execution capability as we had to develop the 13km gas pipeline for this project through built-up areas and a major river crossing, while maintaining international safety standards and environmental friendliness. It is also a significant way of demonstrating how we are well positioned to leverage our gas pipeline network to provide captive power solutions to meet Nigeria’s energy needs”.
Commenting further, Mr. Osunsanya said, “The major social significance of this facility is that it powers Lagos Water Corporation’s major water works, which is responsible for 80% of water supply to the over 18 million residents of Lagos State. This significant improvement in potable water provision will reduce the incidence of pipe-borne water diseases and promote economic activities in the state”.
Oando emerged as the preferred partner for the project following a World Bank compliant international tender in 2005, where 14 organisations bid to provide a power solution for the Lagos State Water Corporation.
For more information, please contact:
Meka Olowola
Head, Corporate Communications
Oando Plc
Stallion House, 2 Ajose Adeogun Street
Victoria Island, Lagos
Phone: 01 2625857
Email: nolowola@Oandoplc.com
www.oandoplc.com