T&D & Niger Delta Power Holding Company

By Chris Dodds on 10th June, 2013

Follow us on LinkedIn

T&D & Niger Delta Power Holding Company

Last week T&D met with and presented to Niger Delta Power Holding Company in connection with the NIPP mega-projects for the electrification of Nigeria.

The National Integrated Power Project (NIPP) was conceived in 2004 as a fast-track government funded initiative to stabilize Nigeria’s electricity supply system while the private-sector led structure of the Electric Power Sector Reform Act (EPSRA) of 2005 took effect.

NIPP was originally designed around seven medium sized gas fired power stations in the gas producing states, and the critical transmission infrastructure needed to evacuate the added power into the national grid. A commitment to electrify host communities in the vicinity of the power stations and major substations gave rise to the distribution component of the project.

In August 2005, the National Council of State and the National Assembly approved an initial funding of US$2.5 billion for NIPP from the “Excess Crude Oil Account” (ECOA) which statutorily belongs to the Federal, state and local governments. The Federal Government therefore incorporated Niger Delta Power Holding Company Limited (NDPHC) as a limited liability company to serve as the legal vehicle to hold the NIPP assets using private sector-oriented best business practices.

Following the 2007 change in administration at the Federal level and in many states, the funding arrangements for NIPP were subjected to intensive legal, political and financial scrutiny, resulting in over two-year interruption in funding for the projects.

At the time of the suspension, US$2.8 billion was already invested in NIPP, including US$1.78 billion in funded letters of credits which allowed some of the projects to continue despite the funding interruption. Contracted commitments totaled US$7.385 billion.

Late in 2008, after a protracted and intensive debate on the way forward, the National Economic Council (NEC) agreed to set aside an additional US$5.375 billion from the ECOA as a Power Emergency Fund to complete NIPP subject to the approvals of all the state legislative houses.

To implement the decision, in January 2009 NEC inaugurated the NIPP Steering Council chaired by the then Vice President Dr. Goodluck Ebele Jonathan, with six state governors and four Federal ministers as members.

The NIPP Steering Council is now the Board of Directors of NDPHC chaired by Vice President Mohammed Namadi Sambo. Its decisions have revitalized NIPP to add new capacity to Nigeria’s electricity supply system in 2011, 2012 and 2013 for the benefit of consumers throughout the country, as the reforms of the Power Road Map and the EPSRA take effect.

Power Stations
Calabar - 561MW
Egbema - 338MW
Ihovbor - 450MW
Gbarain - 225MW
Sapele - 450MW
Omoku - 250MW
Alaoji - 1,074MW
Olorunsogo II - 750MW
Omotosho II - 500MW
Geregu II - 434MW
Ibom Power - 190MW

Meet T&D at Power Nigeria 2013.

Category:  Company Updates

Go back to blog index