NCDMB sells Bayelsa State electricity
Sopuruchi Onwuka
The Nigerian Content Development and Monitoring Board (NCDMB) has become the first government institution in the country to generate and commercialize electricity from its office power plant.
The local capacity development agency which has been leading innovative commercial partnerships in facility and infrastructure development in the domestic energy sector is deal with the Bayelsa State government to sell part of the power produced for its head office in Yenegoa to the state.
Under a Power Purchase Agreement with the Bayelsa State government, the NCDMB is now to deliver electricity from the 10 megawatts gas fired independent power plant (IPP) it constructed in partnership with the Nigerian Agip Oil Company at Elebele, Bayelsa State.
Electricity from the NCDMB Towers would now assist Bayelsa State government power its key government offices and facilities with uninterrupted supply of electricity.
The deal also seeks to optimise the capacity and sustained uptime of the IPP, generate revenue from exported electricity and also provide commercial bases for sustainable plant performance.
The NCDMB stated that the PPA specified the commercial terms for supply of uninterrupted electricity to key facilities of the state.
Governor Douye Diri of the state witnessed execution of the deal between the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, and the Attorney General and Commissioner of Justice of Bayelsa State, Mr. Biriyai Dambo, at a ceremony in Yenegoa.
The 10 MW power plant is part of the 17 storey Nigerian Content Tower (NCT) building commissioned by President Muhammadu Buhari last year. The power plant is conceived to supply uninterrupted power supply to the office complex and the Oil and Gas Park being developed by the NCDMB at Emeyal 1, Ogbia Local Government Area of Bayelsa State.
Engr Wabote declared at the event that the terms of the PPA would ensure that the power 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.
He said “the power supply is not free as all users including NCDMB are expected to make pre-payment deposit for their power requirements just as required by our gas suppliers. We were required to make up to six months 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 unpleasant outcome in the sustainability of the power plant operations.”
Engr. Wabote described the deal as a major milestone in the collaboration between NCDMB and the Bayelsa State Government, pointing at the importance of reliable power supply to enhance the efficient operation of government activities.
He added that the PPA showcased the possibility of tapping into the huge gas reserves and power production potentials of the state in providing reliable supply of electricity to the entire state.
Governor Douye Diri agrees that the state is blessed with abundant gas resources and other energy resources that are largely under-utilised.
He stressed the determination of his administration to utilize the resources of the state for the benefit of the people.
He commended the NCDMB management and other partners that made the agreement possible and offered the partnership of the state government to private investors to make power and other amenities available to the people.
