QUA IBOE POWER PROJECT STALLS AS FG WEIGHS LIABILITIES

Written by on December 3, 2020

THE PROGRESS OF THE QUA IBOE POWER PLANT (QIPP), WHICH IS EXPECTED TO GENERATE 540 MEGAWATTS OF ELECTRICITY WHEN COMPLETED, HAS BEEN STALLED BECAUSE THE FEDERAL GOVERNMENT IS UNABLE TO COMMIT TO KEY CONTRACTUAL OBLIGATIONS.

THE PROPOSED GAS-FIRED POWER PLANT IN IBENO, AKWA IBOM STATE, IS ESTIMATED TO COST ABOUT $1.1 BILLION, WITH A PROPOSED 58-KILOMETRE TRANSMISSION LINE THAT WILL LINK THE PLANT TO THE NATIONAL GRID.

HOWEVER, WE LEARNT THAT THE QIPP CANNOT BEGIN NEGOTIATIONS FOR FUNDING BECAUSE THE FEDERAL GOVERNMENT HAS NOT BEEN ABLE TO COMMIT TO THE POWER PURCHASE AGREEMENT (PPA) THAT WILL BIND THE COUNTRY TO A TAKE-OR-PAY AGREEMENT.

OFFICIALS OF THE MINISTRY OF FINANCE AND QIPP HAVE BEEN NEGOTIATING A NEW PPA BUT INSIDERS SAY THINGS BECAME COMPLICATED” WITH THE CURRENT ECONOMIC SITUATION.

THE WORLD BANK WITHDREW ITS PREVIOUS PRG TO QIPP LAST YEAR BECAUSE OF MISSED MILESTONES.


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