FG approves NBET’s $1.1bn PPA with QIPPL for Qua Iboe power project
The Federal Government has approved the Power Purchase Agreement (PPA) negotiated by the Nigerian Bulk Electricity Trading Plc (NBET) with the new investors for the Qua Iboe Power Plant to be located in Akwa Ibom State.
Mobil Producing Nigeria Limited (MPN), a subsidiary of ExxonMobil, had earlier stated that it had reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the power project and the supply of gas from the Nigerian National Petroleum Corporation (NNPC)/MPN joint venture offshore facilities to the plant.
The government also approved a Put/Call Option Agreement (PCOA), which NBET and the Ministry of Finance agreed with the project’s investors – the Qua Iboe Power Plant Limited (QIPP). QIPP is jointly owned by the NNPC, Black Rhino Group and Dangote Group.
NBET and QIPP also disclosed at the PPA signing ceremony in Abuja that work on the project which is expected to cost about $1.1 billion, would commence as soon as a financial closure is achieved within the second quarter of 2018.
In a related development, the Minister of Power, Works and Housing, Mr Babatunde Fashola, has said that the Federal Executive Council has approved a 14-kilometre 330KVA electricity transmission line at a cost of N796.6million.
Fashola briefed State House Correspondents on the outcomes of the FEC meeting which held on Thursday in Abuja. Although power formed part of the discussion at the meeting, the Council deliberated majorly on the 2018 budget.
The Minister of Budget and National Planning, Udo Udoma, told reporters that the Council approved a draft of the 2018 budget proposal. Udoma added that a date would be fixed in liaison with the National Assembly for the President to submit the draft documents.
The Nigerian Electricity Regulatory Commission (NERC), has explained the application and purpose of the proposed Business Continuity Regulation (BCR),
Stories by Simon Ugwu
