The Bureau of Public Enterprises, operating under the Federal Government, is presently engaged in the sale of five power plants within the National Integrated Power Projects. This transaction, valued at approximately $1.15 billion, is underway.
Although insiders suggest an international benchmark valuation exceeding $5 billion for the plants, the BPE intends to sell them at a slightly higher price of around $1.1 billion, according to informed sources. Ignatius Ayewoh, the acting Director-General of BPE, confirmed the ongoing nature of the transaction in a brief telephone conversation, emphasizing that it has not yet concluded.
Ayewoh refrained from disclosing the specific cost of the five plants, citing an ongoing meeting as the reason for not providing further details.
Reliable sources within the bureau identified the five power plants as follows: the 434 megawatts Geregu II gas-fired power plant in Kogi, the 451MW Omotosho II plant in Ondo, and the 750MW Olorunshogo II plant in Ogun State. Additionally, the list includes the 563MW Odukpami power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.
Reports suggest that the Omotosho plant, equipped with four power-generating turbines, is slated for a price tag of around $85 million, while the Olorunsogo NIPP, also featuring four turbines, would be priced at $170 million. The Benin-Ihovbor plant, boasting five power-generating turbines, is set at $420 million; the Calabar Odukpami plant, with five turbines, is valued at approximately $260 million, and the Geregu plant, with four turbines, is priced at $215 million.
According to an anonymous source familiar with the matter, these turbines are Siemens-made, each capable of generating about 115MW of electricity. The source emphasized that constructing a 1MW power plant would typically cost around $1 million. While acknowledging variations in costs due to factors like power plant type, location, and technological advancements, the source stated that based on this metric, the five NIPP plants would collectively exceed $5 billion in value.
“But a general range for the cost of constructing a 1MW power plant based on different technologies is that for a solar power plant, it is between $1m to $2m per MW.
“For wind power plant, it is between $1.5m to $2.5m per MW. For natural gas-fired power plant, such as the NIPPs, it is between $1m to $2m per MW, while for coal power plants, it is between $2m and $3m per MW,” another source in the sector explained.
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