Abuja — Work is set to start on the first phase of Ondo State's proposed 1050 mega watts Independent Power Project, as the Mimiko administration sealed a Memorandum of Understanding with POSCO E & C of South Korea for the engineering, procurement and construction of the facility.
POSCO E & C is to handle the design, engineering, procurement, construction, commissioning and testing of the 550MW first phase open cycle gas turbine power plant.
Actual construction is expected to commence in first quarter 2016 and would take about 26 months from commencement and date of issuing the notice to proceed.
The state government is currently partnering Kingline Development Company, a South Korean Company, through its Nigerian subsidiary, Kingline Development Nigerian Ltd, for the development of the Independent Power Project (IPP).
The first phase of the project involves the construction of a gas-fired power plant that will generate 550 MW of electricity to be sold into the national grid. The second phase is expected to add another 500 MW.
Already, a special purpose vehicle, called Kingline Ondo IPP Ltd, has been registered to implement the power generation project, officials said in a statement at the weekend.
Head of Kingline Development in Nigeria, Fola Akinnola said in Abuja at the weekend that funding had been secured for the project, stressing that the contract was signed recently at POSCO E & C's headquarters in Inchon, Seoul, South Korea.
Among other progress reports, he noted that Certificate of Occupancy had already been issued by Ondo State government in October for the project, with the environmental impact assessment panel review, scheduled for end of November.