good one

geeez: Last year a 10MW power plant was built for €12m (N2.6bn) in a country that had the technical and material requirements - Germany

http://cleantechnica.com/2012/06/14/watch-the-construction-of-a-10-mw-solar-power-plant-in-germany/

This is a 10.34MW plant for N3.2bn in a developing country

Inflation Rate in Nigeria between last year and this year stood at 8.7%

So tell me what makes the Power Plant overpriced?

sorry for interrupting, no negative intent just a comment. The link you posted is for a solar power plant not a gas powered plant. Solar panels are very costly and u can imagine the amount used to generate that amount of megawatts... All for clean energy. Nice move by LASG but i dont think the two plants are comparable...

Good job governor Fashola, every week u unfold one surprise or the other to lagosians gosh i wish and pray u become Nigerias president to u dish out from your endless purse of surprises to the nation. U will live long and your foot prints will be remembered in the sands of time.

geeez: The Lagos Island IPP (over 11MW) currently powers the State House, Island Maternity, General Hospital, The High Court and the street lights in and around Marina and stretching to Eko Bridge

This Power Plant will serve the secretariat and provide electricity for street lights around Alausa and all the way to Ikeja

More plants will be built to serve public buildings and eventually industrial areas

This will free up electricity for commercial and residential areas

Slowly but surely we are on the right path towards addressing the most critical infrastructural need which the FG has consistently failed to address

There's also going to be a Somolu IPP to take all those terrible printing presses off the grid.

dumodust:

sorry for interrupting, no negative intent just a comment. The link you posted is for a solar power plant not a gas powered plant. Solar panels are very costly and u can imagine the amount used to generate that amount of megawatts... All for clean energy. Nice move by LASG but i dont think the two plants are comparable...

Furthermore, solar plants have little or no running costs that is why their initial installation cost is so high. So justifying this huge waste of funds with that, is rubbish.

my calculation
a megawatt costs 1miilion dollars according to the last contract awarded by obj

1usd = 160
160x10million = 1,600,000,000
1.6billion.

how did lasg arrived at 3.2billion

I think almost everybody here can't be against Lagos State or it's progress on this. We have to accept this fact and move on, let's call a spade, a spade. The said amount of money is just too much for 10.34MW. I am not a tribalist but this is just the truth though it's a welcome development. Again, the project is just for a select few places and doesn't really affect the people [except via street light]. Government should embark on projects that really affects the masses and not something like this. Even if I was a Lagosian, I wouldn't celebrate this pls.

kudos to Fashola and LASG but I remember seeing a lot of people criticize GEJ for commissioning a 414MW plant earlier this month.

Fitzy4real: kudos to Fashola and LASG but I remember seeing a lot of people critisizing GEJ for commissioning a 414MW plant.

u can't compare federal to state now. especially in the Presidential system of government that all the power and money is at the center.

geeez: Last year a 10MW power plant was built for €12m (N2.6bn) in a country that had the technical and material requirements - Germany

http://cleantechnica.com/2012/06/14/watch-the-construction-of-a-10-mw-solar-power-plant-in-germany/

This is a 10.34MW plant for N3.2bn in a developing country

Inflation Rate in Nigeria between last year and this year stood at 8.7%

So tell me what makes the Power Plant overpriced?

Everything makes it overpriced.

you forgot to tell us clean energy was used.

Do you know its much more expensive building solar power plants than the normal Gas fueled power plant built by Eko and Oando?

It's a good idea but don't go comparing the amount for a Natural gas power plant and a Sower powered plant which needs zero input.

Have you factored in running cost for buying Natural Gas in the next ten years?

9jadelta: my calculation
a megawatt costs 1miilion dollars according to the last contract awarded by obj

1usd = 160
160x10million = 1,600,000,000
1.6billion.

how did lasg arrived at 3.2billion

The average cost per mega watt is $1m or approximately N160m, however that is for the machinery only. One would have to scrutinise the breakdown of the contract cost to know if the N3.2bn is inflated. Other aspects such as land cost and gas pipelines must be considered, because even though a gas line runs through the area, they will have to connect the power plant to it.

What I would suggest is for people like you to investigate these things and bring them out into the open. An IPP that will remove 70 diesel generators makes a lot of sense but as with all things Government (whether Lagos, FG or any other state), lets ensure that we are not overspending.

@ Those people rubbishing what Lagos is doing, I don't think you really understand the concept:

1- Lagos state government structures at Alausa are to be powered by one gas power plant rather than 70 generators
2- There will be a great reduction in energy costs, leading to lower recurrent expenditure
3- There will be a great reduction in pollution, especially for those who live or work within that environment
4- There will be no power outage, meaning more efficient government operations
5- By removing state structures from the National Grid, more electricity is freed up to be used by the rest of us.

So how is this project a bad thing?

eyenCalabar: Again, the project is just for a select few places and doesn't really affect the people [except via street light]. Government should embark on projects that really affects the masses and not something like this. Even if I was a Lagosian, I wouldn't celebrate this pls.

1. If the secretariat is taken off the Grid,It frees capacity to average lagosian.
2.Also when you have an efficient secrtariat, it improved productivity of the civil servants, thereby cutting waste and improving service delivery
3. The amount of money spent ( and lost) tunning 70 generators is all gone and can be used in other part of the state economy
4. The environmental and noise pollution due to these diesel generators is wipped off
5. Street light on Awolowo way , will not only improve the night driving experience, but SMEs along that road, will enjoy increased patronage

So, a little drop in the ocean, always have ripple effect

9jadelta: my calculation
a megawatt costs 1miilion dollars according to the last contract awarded by obj

1usd = 160
160x10million = 1,600,000,000
1.6billion.

how did lasg arrived at 3.2billion

so you expect the price to remain the same since obj left about 7 years ago ,,, how much was a ltr of petrol, a bag of rice, a plot of land, e.t.c then.... bro inflation has taken place and new technology that will cost more might have been invented

I did my industrial training in S.P.D.C port harcourt. Only shell uses 21MW of electricity. I see no reason to make a song and dance of a mini 10MW power plant. Nigerians are full of sentiment in what ever they do. So pathetic!

Why are people hating??

Even if it is 1MW it is a step in the right direction... All we need is as many sources if megawatt as we can get... With time the smaller noneconomical once will fizzle out.. But for now....LET THERE BE LIGHT!!

This is good, if we can have major infrastructures freed from national greed. Then we can begin to damn PHCN with its absurdities. Kudos to LSG we need more.

Bros, you try very much. I no fit laugh

How on earth were you comparing a 10MW Solar Power Plant with 10.2MW Gas turbine.

A free renewable energy source with gas turbine (cost, noise, pollution and high maintenance)

The Project is a good development shaa, but no dey confuse people with fraudulent comparison.

geeez: Last year a 10MW power plant was built for €12m (N2.6bn) in a country that had the technical and material requirements - Germany

http://cleantechnica.com/2012/06/14/watch-the-construction-of-a-10-mw-solar-power-plant-in-germany/

This is a 10.34MW plant for N3.2bn in a developing country

Inflation Rate in Nigeria between last year and this year stood at 8.7%

So tell me what makes the Power Plant overpriced?

Its amazing how deep tribal bigotry has eaten into the fabric of this nation, it might be over priced but it's a good initiative. Oh btw before you think am yoruba fyi am a full blooded deltan.
I just wish my governor would even build a 5MW I-pass-my-neighbour for 5 billion sef, at least we'd see something in ground.
The truth is bitter folks but you my Ibo brothers should for once accept that BRF is doing a good job even though he has shortcomings.

geeez: Last year a 10MW power plant was built for €12m (N2.6bn) in a country that had the technical and material requirements - Germany

http://cleantechnica.com/2012/06/14/watch-the-construction-of-a-10-mw-solar-power-plant-in-germany/

This is a 10.34MW plant for N3.2bn in a developing country

Inflation Rate in Nigeria between last year and this year stood at 8.7%

So tell me what makes the Power Plant overpriced?

You have come up with a good but severely flawed argument. How can you compare the price of a solar power plant to the price of a gas fired plant??.. Are you not aware that solar technology is expensive??

IMO, I do not think the Lagos project is overpriced but I just had to comment on your post so people dont buy into it

Benwems: I did my industrial training in S.P.D.C port harcourt. Only shell uses 21MW of electricity. I see no reason to make a song and dance of a mini 10MW power plant. Nigerians are full of sentiment in what ever they do. So pathetic!

God bless you sir, I will applaud if LASG is celebrating 200MW commissioning. 10mw is just about 3 generator sets.God will help our youth, thank God at least Fashola is trying to do something, but 10mw is not worth all the noise and publicity. I would not dwell on the cost, because I dont deal with procurement; but I'm sure lots would have gone to kick backs...................God bless Nigeria.

Afolabs101:

The average cost per mega watt is $1m or approximately N160m, however that is for the machinery only. One would have to scrutinise the breakdown of the contract cost to know if the N3.2bn is inflated. Other aspects such as land cost and gas pipelines must be considered, because even though a gas line runs through the area, they will have to connect the power plant to it.

What I would suggest is for people like you to investigate these things and bring them out into the open. An IPP that will remove 70 diesel generators makes a lot of sense but as with all things Government (whether Lagos, FG or any other state), lets ensure that we are not overspending.

@ Those people rubbishing what Lagos is doing, I don't think you really understand the concept:

1- Lagos state government structures at Alausa are to be powered by one gas power plant rather than 70 generators
2- There will be a great reduction in energy costs, leading to lower recurrent expenditure
3- There will be a great reduction in pollution, especially for those who live or work within that environment
4- There will be no power outage, meaning more efficient government operations
5- By removing state structures from the National Grid, more electricity is freed up to be used by the rest of us.

So how is this project a bad thing?

firstly, don't read any meaning to my post. I didn't say the project is a bad thing, it is a welcomed development and I think every state should emulate it.
secondly, I don't have any problem with lagos state government or fashola or whatever the government decides to do with state fund.. infact im a big fan fashola. that clarified.

now let's talk about the issue I raised.
the cost of building a 1 mW plant is 1million dollars not just the machines or equipment, the entire construction.
government owns all land. so, it is not as if they rent the land or pay some agberos extra cash to build the plant.
the maintainance cost is not in the 3.2b. maintainance is or will be a continous thing in which the money will be removed from taxes payed to the state.

the project is a good thing but it is obviously over inflated 2.3 billion is still a meaningful figure for 10mw of electricity

shogz89:
so you expect the price to remain the same since obj left about 7 years ago ,,, how much was a ltr of petrol, a bag of rice, a plot of land, e.t.c then.... bro inflation has taken place and new technology that will cost more might have been invented

smh, so u now compare construction of power plant to price of tomato and garri? anyway the price hasn't changed and if at all there is any increment, it won't be x2 of initial price

eyenCalabar: I think almost everybody here can't be against Lagos State or it's progress on this. We have to accept this fact and move on, let's call a spade, a spade. The said amount of money is just too much for 10.34MW. I am not a tribalist but this is just the truth though it's a welcome development. Again, the project is just for a select few places and doesn't really affect the people [except via street light]. Government should embark on projects that really affects the masses and not something like this. Even if I was a Lagosian, I wouldn't celebrate this pls.

I don't understand how people can just say the figure is too high when they do not know what the N3.2bn contract sum was used for. The amount of pipelines, other auxiliary equipment etc could have gone in to it. So if you feel it's too high, then investigate and come and tell us your findings. I live in Lagos and I'm Yoruba but I also call a spade a spade. If this contract sum has been inflated then lets come out with some sort of facts to back it up. You can't compare one plant with another built somewhere else, environment, soil, climate etc are all determinants of the cost of a power plant.

@eyenCalabar, if you see my previous post, I have outlined five reasons why this is a good project. This affects the masses who rely on the state government and reduces recurrent expenditure which affects all of us

Afolabs101:

I don't understand how people can just say the figure is too high when they do not know what the N3.2bn contract sum was used for. The amount of pipelines, other auxiliary equipment etc could have gone in to it. So if you feel it's too high, then investigate and come and tell us your findings. I live in Lagos and I'm Yoruba but I also call a spade a spade. If this contract sum has been inflated then lets come out with some sort of facts to back it up. You can't compare one plant with another built somewhere else, environment, soil, climate etc are all determinants of the cost of a power plant.

@eyenCalabar, if you see my previous post, I have outlined five reasons why this is a good project. This affects the masses who rely on the state government and reduces recurrent expenditure which affects all of us

You can google the cost of those equipment and als factor in some contingency; it is stil a far cry, but like I said earlier, most of the money would have gone to kick backs and settling omo onile and agberos......................

I know nothing about costing for a power project. However, if it cost 10bn less the savings wont have come to any of our pockets. I am glad to hear of a project being completed rather than the typical rhetoric of 'Govermnent TO build stairway to heave', 'Govt signs MOU to predict date and time if rapture', etc.

If all 36 Govts and the FG had more stories of completions, we would be fine in this country!

What is interesting however, is the cost of the 10MW Solar plant in Germany.

Labour must be cheaper in Nigeria, so we can argue that for almost that same price we can have 10MW Solar Plants in Nigeria, especailly as we have way more constant SUN in Nigeria.

oche_ejemb: What is interesting however, is the cost of the 10MW Solar plant in Germany.

Labour must be cheaper in Nigeria, so we can argue that for almost that same price we can have 10MW Solar Plants in Nigeria, especailly as we have way more constant SUN in Nigeria.

Maintenance and space consumption is a constraint. It will not be efficient in Lagos, where every one fights for available land space....Gas turbine is more compact; though maintenance is high too..

9jadelta: firstly, don't read any meaning to my post. I didn't say the project is a bad thing, it is a welcomed development and I think every state should emulate it.
secondly, I don't have any problem with lagos state government or fashola or whatever the government decides to do with state fund.. infact im a big fan fashola. that clarified.

now let's talk about the issue I raised.
the cost of building a 1 mW plant is 1million dollars not just the machines or equipment, the entire construction.
government owns all land. so, it is not as if they rent the land or pay some agberos extra cash to build the plant.
the maintainance cost is not in the 3.2b. maintainance is or will be a continous thing in which the money will be removed from taxes payed to the state.

the project is a good thing but it is obviously over inflated 2.3 billion is still a meaningful figure for 10mw of electricity

I understand your points and I'm not here to defend fashola as I feel this discussion should be objective. That being said, I disagree with you on the $1m per MW as we do not know all that's gone into the project. What if they had to pull down some buildings where the plant was located, or if they had to encroach on land they did not own and had to pay compensation to land owners. We really don't know what had to go into the project.

To me the N3.2bn seems high as I have assessed other power projects that were cheaper and I know how government works in this country. I can point to the Lekki expressway that I ride on everyday, that I do not believe for one second should cost N1bn per KM. I can point to the link connection they did for Falomo bridge which I was told was overinflated and I believe it was (just my opinion).

However, we should be careful and be objective. Until you know exactly what went into the project or have the cost breakdown, you can not come out to categorically say that it is too expensive.

geeez: Last year a 10MW power plant was built for €12m (N2.6bn) in a country that had the technical and material requirements - Germany

http://cleantechnica.com/2012/06/14/watch-the-construction-of-a-10-mw-solar-power-plant-in-germany/

This is a 10.34MW plant for N3.2bn in a developing country

Inflation Rate in Nigeria between last year and this year stood at 8.7%

So tell me what makes the Power Plant overpriced?

it is grossly overpriced because its a gas gen. The german case is a solar plant covering 10 football fields with 44,000 solar modules. Solar is a very expensive technology for now to start with little maintenance cost while gas gen is a vastly cheaper technology with higher maintenance cost. At best a 10M watts gas gen is about $4m (N700M)including installations and controls

Mikano in trouble. 70 generators are leaving.

Diesel suppliers are threatened, no more contract as usual.

if each generator consumes a minimum of 1million per annum (cost of diesel and maintenance. Of course a far underestimation, as most of us know what it cost to run diesel generators in Nigeria) then 700 million will be saved. I bet you that they can't use more than 100millin for both maintenance and gas supply to the new plant. So 600 million is saved and if you multiply this by 5 years, it implies the state has 3 billion saved which is about the cost of the plant. If the state decides to unction the generators to my beloved traders at 1million naira each that will amount to 70million naira which will pay the salaries of a local government in a month.

I remember that Odili did something like this in Rivers state. If all our leaders from 1999 has done a little of this, we would have been progressing gradually. Which other state has taken such initiative and brought it to fruition.