Featured, Power
By Anthony Isibor
AS Nigerians and several stakeholders extol the numerous possibilities that the Aba power project holds for the South East and its potential as a pacesetter for similar projects across the country, Prof Benedict Oramah, President and Chairman of the Board of African Export Import Bank, Afreximbank, has outlined some of the reasons why the project is unique.
Speaking at the Commissioning Ceremony of the project in February, Prof Oramah noted among other things, that the Aba IPP is today the only electricity company in Nigeria that is fully vertically integrated with embedded generation and distribution capacity.
According to him, the model allows Aba IPP to generate and supply power to its immediate community as a priority before sales of excess power to the National grid. “This embedded power generation model strategically ensures constant power supply in the ring-fenced area, regardless of the performance of the National Grid and associated distribution infrastructure.
“The end-to-end approach of this model is also worthy of mention. Afreximbank’s financing did not only go to funding the acquisition of Turbines, but also to supply the distribution infrastructure, such as the dedicated 27-km gas pipeline ensuring consistent gas supply, construction of 5 new distribution substations, rehabilitation of existing sub-stations in the state and acquisition of collection paraphernalia.
“In this regard, I believe the Nigerian power sector is about to witness a revolutionary project, which along with an enabling regulatory framework such as the 2023 Electricity Act, will herald the inclusion of private sector participants. This is because the Aba IPP structure enables the sponsor to control their destiny and avoid transferred inefficiencies from other players. The embedded structure also enables value creation through improved cost management at sourcing level, generation, distribution, and collection levels.
“The Aba IPP Power Project also underscores what can be achieved when public and private sector stakeholders join forces to impact humanity. It re-emphasizes to us the value of quality leadership and the benefits of building together as a people to pursue the upliftment of our collective welfare.
“The Aba IPP depicts the importance of continuity and unity of purpose in governance, as it showcases the contributions of several generation of leaders since 2004, working towards accomplishing meaningful change.
“Consistent with the governor’s five-point agenda, the Bank is meticulously appraising and funding projects that address the challenges of social and economic transformation. For example, in furtherance of the vision to provide cutting-edge communication infrastructure, the sponsors of Aba IPP also proactively installed fiber optic cables on the power transmission lines to facilitate transportation of large data,” he added.
Although Nigeria has immense potentials in generating enough power with its abundant oil, gas, solar and hydro resources as well as years of reforms and investments by succeeding governments, the country regrettably has had and still has a long-standing power problem with power supply largely epileptic.
However, Prof Oramah believes that steady power supply can be achieved and notes that projects like Aba Power will make it a reality.
“The World Bank has estimated that, in order for Nigeria to achieve its goals of nationwide access to electricity for its people, it will require connecting 500,000 to 800,000 households each year. This is an uphill task, but it is doable, and this is not just blind optimism. It is projects like the one we are commissioning today that will make it doable. I must congratulate President Tinubu for his quick action in this area with the Electricity Act 2023. The Act holds a lot of promise with more active participation of sub-nationals, and it is my hope that implementation will make a difference.
Commending Geometric Power and Prof. Bert Nnaji for the tenacity, Prof Oramah also noted that the Afreximbank has vowed to stand beside the Aba project as a steadfast partner, committed to fostering prosperity in Abia State, using both financial and intellectual capabilities.
“It is well understood that energy is the lifeblood of national development, and this is because energy drives industrialization, power transportation systems, reduces the cost of doing business for small and medium scale enterprises and lights up our homes and offices. Energy is essential for fostering inclusive growth and reducing poverty.
“It is because we fully understand the role of energy in national development and also in supporting industrialization and trade, that Afreximbank has committed in excess of 4.6 billion dollars to the power sector across the continent since inception, of which about 20% or 900 million dollars has been in Nigeria alone. Of all the projects we have supported, we are most intrigued about the uniqueness of Aba IPP and its potential as a pacesetter for similar projects across the country.
“As I close, I must commend the steadfastness of Professor Barth Nnaji, without whom, we will not be here today. As you may have heard, this journey started in 2004 and has faced tremendous challenges along the way.
“Only a person who is truly committed to the cause will have continued with the project to now. Prof Nnaji’s commitment to the project is a source of inspiration to us at Afreximbank and makes us believe that the project will be a huge success,” he added.
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-March 07, 2024 @ 12:00 GMT|
Tags: Afreximbank African Export Import Bank Prof Benedict Oramah Prof. Bert Nnaji
