…As Firm Plans $1.5 Billion Investment
Minister of Power, Works and Housing, Babatunde Fashola has declared that despite the challenges in the power sector, investment profile of some operators is a clear testament to the success of the privatization exercise.
Fashola noted at a power sector dialogue organized by he Lagos Chamber of Commerce and Industry, LCCI in Lagos said, that the significant turn around of one of the biggest gas fired generation plant in Africa, Egbin power is a clear expression of investors confidence in the sector and an indication that the privatization of the power industry is succeeding.
The minister, admitted though there are some issues yet unresolved, however investment portfolio in the sector is increasing, and further assured that government is doing its best to address particularly the liquidity crises in the system.
He applauded management of Egbin for restoring the station to capacity after several years of neglect and near abandonment, bringing generations to 1320 megawatts from 240 megawatts prior to takeover.
The management of Egbin Power Plant has stated that it will double the capacity of the power plant from the current 1320MW to 2740MW by the year 2020.
Managing Director and Chief Executive Officer, Egbin Power Plant, Dallas Peavey, recently said that the management is currently discussing with General Electric (GE) and some other partners to ensure realization of the objective.
Peavey also said the company is looking at making $1.5 billion investment to achieve that goal.
Before the take over in 2013, the plant was operating below 30 per cent capacity and had some challenges, but has been improved and operating at international standards.
The new owners have so far invested over $400 million to improve on its operationally capabilities.
Before privatization unit 6 of the plant which is now operating optimally was out of operation for over 30 years.
Egbin plant recently employed 107 engineer graduates from universities in Nigeria and management is set to be build a training facility for Egbin and working on training, simulations after installing gas meters to know amount of energy used, same with the type and quality of gas.