by: John Ofikhenua


The Ondo State government and a Korean firm, Kingline Development Limited, have struck a deal on the construction of the state’s 550 mega watts (Mw) power plant valued at $500Million.

The project, named Kingline Ondo IPP Project, is to be situated at the Ondo State International Industrial Park, Omotoso. The power project is to be operated using the Public-Private Partnership (PPP) module and aims to generate about 550 Mw in the first phase using simple-cycle with combined-cycle option.

Chief Business Development Officer at Kingline Development Ltd, Akinnola Fola, who spoke with reporters in Abuja at the weekend, noted that the project would transform the state and make it an industrial hub in the region.
“The output now is $500million for 550Mw. This is the phase one of the project. At the second phase, we would do another 550Mw to bring it to 1100Mw.

“Also the land for the project has been secured as a contribution from Ondo State government. The total area for the project is 250 acres. Also the EPC contractor’s name will be announced shortly after concluding the competitive bidding exercise currently ongoing to select the best contractor among the offers received.”

Fola said the project was progressing well, as approval for evacuation had been secured from the Transmission Company of Nigeria (TCN). The evacuation study is one of the key documents that ensures that generated power can be evacuated and taken on the national grid.
He spoke on other preparations towards the project.

He said: “NBET had already shared the draft PPA with us for reviewing and the necessary documentations for signing the PPA are being put together at the moment. Due diligence exercise is ongoing with the Gas Aggregation Company Nigeria Limited (GACN) while licensing documentation after approval to generate power under unsolicited condition on the strength of our partnership with Ondo State is under preparation. It will be submitted shortly.

“On the equity contribution, we are 100 per cent equity funded. Our debt raising is ongoing with Global Investment Bank, the leading fund raiser. Environmental Impact Assessment is ongoing, while discussion with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, for political risk has commenced as well. These are the status of the various approvals from the agencies. Kingline Development Limited aims to become one of the leading power plant developers in Nigeria.”


http://thenationonlineng.net/new/ondo-earmarks-500m-cash-to-boost-power/