Sagamu Independent Power Plant Limited (SIPP), a wholly owned Nigerian company, and private developer in power and infrastructure, has signed an Engineering, Procurement and Construction (EPC) contract with China Energy Engineering Corporation Limited (Energy China) for the construction of 400 megawatts Sagamu IPP to be located in Sagamu Local Government Area of Ogun State.
This is coming as the Nigerian Electricity Regulatory commission (NERC) has rated Eko Electricity Distribution Company (EKEDC) as the best distribution company on all performance indices for the year 2017.
With the EPC contract finalised, Energy China will now proceed with the implementation/construction of the plant estimated to cost $550 million.
Under the terms of the EPC contract, Energy China will deliver the plant on a Turnkey basis providing engineering services, local construction and balance of plant.
“The Execution of the EPC contract marks a significant milestone for the project and a major step forward in our objective of meeting the Energy needs of Nigeria. Energy China is leading the financing of the project with strong support from International banks in China. We expect to achieve Financial Close by Q3 2018,” said Managing Director/CEO of SIPP Limited, Samuel Marcus.
Commenting on the event the Representative of Energy China said, “We are very proud to be playing a key role in this landmark project. Building on our extensive experience of working around the World as one of the biggest Energy and Infrastructure Corporation especially in the power plant market, we are looking forward to the successful completion of the Project, as this will be a good Cooperation for the people of Nigeria and China”.
Construction of the plant is due to commence in 2018 and the plant will start operations in 2020.
In a related development, NERC has rated Eko Electricity Distribution Company (EKEDC) as the best distribution company on all performance indices for the year 2017.
In the performance scorecard released by the regulatory body at the 24th monthly meeting between the Minister of Power, Works and Housing, Mr. Babatunde Fashola and operators of the power sector held on February 12, 2018, Eko Disco emerged tops by beating Benin Disco and Abuja Disco to the second and third positions respectively.
The meeting, which drew participants from the entire electricity sector value chain was hosted by the Transmission Company of Nigeria at Katampe transmission Injection sub-station, Abuja.
According to the NERC scorecard, indices used for the rating include Aggregate Technical, Commercial and Collection (ATC&C) loss reduction, revenue collection and metering. Others are High Voltage fault clearance index, remittance to Market Operator and remittance to Nigerian Bulk Electricity Trading Company (NBET).
Speaking on the rating, the MD/CEO of Eko Disco, Mr. AdeoyeFadeyibi said the rating was in line with the company’s resolve to be among the best power utility companies in the whole world.
He also said the rating was the result of hard work, commitment and oneness of purpose by the entire workforce of the company.
Adeoye promised that the rating will serve as impetus for the company to aspire to higher grounds in the year 2018.
Also expressing his delight at the rating, Chairman Board of Eko Disco, Mr. Charles Momoh said the company’s customers should expect more in service delivery in the year 2018.
He said the lesson from the company’s rating as the best Disco is that the company cannot afford to relent on its oars so as to maintain its leadership position within the industry.
Momoh also thanked all workers of Eko Disco for the feat and urged them to do more in the year 2018.