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Power: Oando invests $25m on IPP

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By Yemie Adeoye
IN an effort to boost  electricity supply to the Lagos Water Corporation Plant in Akute on the outskirts of Lagos, Oando Plc has invested the sum of 25 million dollars on the construction of an Independent Power Plant (IPP) to boost the supply of water to indigenes of the state around the area.

Jubril Adewale Tinubu, Group Chief Executive Officer of  the company dropped this hint during the commissioning of the ultramodern thermal power plant in Akute recently.

According to him, the commissioning of the plant is a significant milestone for a lot of reasons. “First and foremost, this Power Plant will ensure 24 hours potable water supply to the citizens of Lagos State against the previous 8 hours representing 300% improvement in efficiency.

According to the World Health Organisation, “the greatest mortality in Africa arises from preventable water-borne diseases, which affect infants and young children greater than any other group. The principal cause of these diseases is the regional water crisis, or lack of safe drinking water.” he said.

Provision of clean drinking water has been recorded to reduce the morbidity and mortality rates of some of the most serious water-related diseases by up to 82 per cent.

“Also, with the United Nations consistent message that “guaranteeing proper water supply is vital to eradicating poverty”, it is clear that the benefits of water go beyond the health impact. Water to say the least is the foundation of sustainable development. Cities that lack effective water management are usually faced with stagnant economic growth.

It is, therefore, an immense pleasure that Oando’s commitment to partner Lagos to build a world-class megacity is beginning to gradually yield tangible results. With this facility, Akute Water Intake Facility, being responsible for 80% of water supply to the over 18 million residents of Lagos State, this 300 per cent improvement in efficiency, will not only significantly reduce the incidence of diseases, but also reduce poverty.”

Secondly, we are excited about this commissioning as it represents the first of many IPP projects. Our strategy with regards to power has always been clear – contribute several captive power plants to Nigerian market to boost electricity supply and improve industrial capacity.

“Oando started out as a petroleum marketing company, but with time, perseverance, support from public and private sectors, financial institutions, committed and industrious Nigerians who work in Oando, wonderful people of this country, including great Lagosians here who buy our products, we have evolved into an integrated company with assets across the energy value chain.

“In many respects, we are a pioneering company. We are the biggest supplier of fuel products to meet local requirements. We are building the largest gas pipeline in sub-Saharan Africa to provide alternative power supply and make local industries globally competitive. Currently, we have over 100 top industries in Lagos connected to our gas grid. These companies are enjoying uninterrupted, stable, cheaper, safer and cleaner gas fuel to power their operations. This has resulted in over 50 per cent reduction in energy cost thereby increasing their competitiveness in the global economy.

We are driven by a vision to build a Nigerian company, able to meet the country’s energy requirements from within. We shall continue to build world class energy platforms that support industrialization and economic development.

The journey to today’s commissioning was a long and rewarding one for all parties involved. It started with a World Bank compliant international tender in 2005, which resulted in 14 organisations bidding to provide a power solution for the Lagos State Water Corporation. After a rigorous and merit-driven review, Oando’s submission was adjudged to be the most feasible and the best. A lengthy and rigorous negotiation process that several times seemed to result in a deadlock followed.  Our presence here today is a commendation for the parties involved in finding middle grounds to deliver this exceptional project.

The Akute Power project includes the construction of a 13km gas pipeline to supply power to the plant at the Lagos Water Corporation. This gas fueled IPP will deliver an immediate 300 percent increase in capacity utilisation of Lagos Water Corporation, whilst saving millions of energy in energy costs annually.” he enthused.

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