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Nigeria : KEDCO signs power supply deal with AJAOKUTA STEEL COMPANY.

A power purchase agreement (PPA) is in place between Kano Electricity Distribution Company (KEDCO) and Ajaokuta Steel Company Limited under the embedded generation frame work, for improving power generation to Katsina, Jigawa and Kano electricity consumers.

The signing ceremony was held in Kano during which Managing Director of KEDCO, Dr Jamil Sayaku Gwamna stated that the agreement aims at improving the power received, which would cover the entire 110 Mega Watts from the thermal station in Ajaokuta. Nearly 85 per cent of the power generated from the Ajaokuta thermal will be for KEDCO, and the balance 15 per cent will be for Ajaokuta town.

Execution of the project would be carried out in phases, as not less that 25-30 Mega Watts is expected to be transmitted to KEDCO within the next three weeks.

He said, If that is done, our customers will certainly notice some remarkable improvement in their power supply as there would be stability and longer hours of power than what is presently been experienced, which is a milestone to Ajakouta, KEDCO and our numerous customers.

The Sole Administrator of Ajaokuta Steel Company, Mr Joseph Isah stated that the steel company had nearly 41 thermal generating units, which investors should support for strengthening power generation in the entire country. Already, the reactivation works had commenced and in the next 30 days, we will start generating power from the Ajaokuta Power plant for sale to KEDCO.

The phase two of the expansion of the thermal power plant is expected to generate additional 300 Mega Watts, which will commence immediately in collaboration with Messrs 3 D Hi-tech System Limited, which would equally be sold to KEDCO.

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Publication:Mena Report
Geographic Code:6NIGR
Date:Jun 16, 2014
Words:288
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