Speeches

Commissioning Of The Island Power Project At The Island Power Project Site, Marina, Lagos

May 25, 2011 - Two decades ago, Lagos was simply considered as one of the most populous cities in Nigeria. Today, it has grown to become a megacity; a status that calls for an even higher demand of good roads, potable water affordable housing and regular and dependable supply of electricity.

As you may be aware, the regulatory and statutory framework until recently restricted the involvement and participation of State governments in the provision of electric power. This constraint extended to both generation and distribution of electricity. Happily, as from the enactment of the Electric Power Sector Reform Act ("ESPRA"), State governments and private investors alike may now partake in the business of provision and supply of electricity.

With the change in the legal order we are able to use our innovative abilities to discharged our responsibility as a government to provide an enabling environment for the advancement of quality life style, trade & commerce, law & order, essential social services and the growth of small scale businesses, a crucial limb to the continuous development of any economy.

In Lagos State today, industrialization and general improvement in income and living conditions have resulted in increased demand for electricity. Recent data reveals that the power requirements of Lagos today is estimated at about 10,000 – 12,000 MW. This is in sharp contrast to the less than 1,000MW available to Lagos State from the national grid.

This dearth of electricity has propelled our citizens to self help, compelling them to be generators of their own electricity resulting in emergence of all manner of domestic power generating sets. This has resulted in a very high cost of electricity which unfortunately accounts for 30% of operating costs of any business.

This has many adverse social costs that are almost limitless in their dimension. Erosion of disposable income for fuel to provide power, frustrations, health hazards, security failures, unemployment and so much more.

Unfortunately, the provision of electricity and the management of power, remains regrettably a matter of responsibility for the Federal Government which it is yet to discharge satisfactorily.

As a Government that cares, we have refused to fold our arms. We have constantly kept to our promise to deliver; to continue to provide for the needs of the people of Lagos State. It is in keeping to this promise and the necessity to provide a platform for the promotion of the socio-economic well-being of the people that we commissioned the construction and development of this power plant.

This is the 3rd (third) Independent Power Plant (following the 270MW at Egbin and the 12.5MW at Iju) that Lagos State Government is undertaking and completing.

As bedrock of any developmental agenda, this administration has always considered the provision of stable power supply as being of the utmost priority. The provision of potable water, functional telecommunication services, uninterrupted information and communication services, security operations, traffic management, healthcare and education are all dependent on the availability of constant and stable electricity.

Without recourse to any scientific analysis, it is without doubt that the demands for all of these services have tremendously increased in Lagos State, although we have had to improvise to provide power for their services.

We have therefore by necessity become the laboratory for evolving home grown solutions, through thinking and planning, for our domestic challenges.

We thought through the problem of powering critical public facilities like court houses and hospitals. We searched diligently for practical solutions. We subsequently found and collaborated with a reputable independent power producer. The result of that partnership is this 10MW electricity generating facility, the Island Power Project.

The initiative of this project was induced by the necessity to consolidate the Justice Sector Reform agenda of the Lagos State Government. It was originally designed as a scheme which we tagged "Powering Justice" proposed to supply electricity only to the Lagos State Government Court facilities in the Lagos Island axis., i.e High Court (Igbosere and Annex at TBS) and JIC Taylor Court House at Igbosere. The project was subsequently expanded to accommodate government health facilities and street lights on 20 streets along that corridor.

This facility, built to highest global thermal operating plant standards will now provide 24 hours constant power supply to public facilities within the Lagos Island axis. The project which includes an 18km dedicated underground distribution network will supply power to the General Hospital (Lagos Island), the High Court, High Court Annex (TBS); JIC Taylor Court House, Igbosere; Island Maternity Hospital and the State House (Marina).

The power plant will also provide electricity for the street lights on Broad Street, Tinubu Square, Bamgbose Street, Igbosere Road, Lawson Street, Moloney Street, Strachan Street, Okesuna Street, Hawley Street, Catholic Mission Street, Ganiyu Smith Street, Glover Street, Mobolaji Bank-Anthony Street, Brook Street, Joseph Street, Campos Street, Campbell Street, Ajele Street, Odunlami Street and Kakawa Street. In order to achieve this, the street lighting furniture on all of these 20 streets have been refurbished. The plant is powered by gas engines with diesel engines as backup.

The commissioning of this plant immediately puts out of use a minimum of 30 - diesel generating sets of between 100 - 1,000 KVA each, eliminating the inevitable pollution; noise and carbon monoxide caused by generators. This plant also has a vast cost saving component to the state government of 46% over project whole life cycle.

An obvious benefit of the Island Power Project however is its ability to drastically improve the reliability of power supply to the above mentioned government facilities from 35% to 100% with the corresponding reduction in the operating costs and increased efficiency in this government facilities. It will also significantly improve the delivery of essential social services to the people of Lagos State.

Distinguished ladies and gentlemen, in a study recently carried out in the United Kingdom, it was demonstrated that street lighting is a more effective strategy for crime prevention as compared to CCTV.

We expect therefore that since street lighting is an essential ingredient for improving security of any society, those streets covered by this project will only become much more secure. The underlying advantage however is the improvement of law and order and the rejuvenation of night life economy in the axis.

Cumulatively, the Island Power Project will be powering over 230 street light installations, 40 court rooms, 8 operating theatres, a 153 chamber mortuary, 16 clinics/ centres which include 2 HIV/AIDS clinics, 2 emergency centres that harbor 3 fully equipped Lagos State emergency ambulances and a special babies unit.

This project from conception to its commissioning today was undertaken in less than 18 months. This makes it the fastest ever executed Independent Power Project in Nigeria. It is also a further demonstration of the appreciation and commitment of the Government of Lagos State to the procurement and provision of infrastructure using the Public Private Partnership model.

An interesting innovation of this project is that it comes with a 24 hour dedicated call centre for street light queries. This will ensure the immediate attention of relevant officials to issues relating to the street lights leading to the optimum utilization of the infrastructure.

Distinguished ladies and gentlemen, the people of Lagos State have been deprived of one of the essentials of decent living; constant, uninterrupted, affordable and clean electricity power supply for too long. This problem has its roots amongst other things in the lack of accurate data as to the actual power/energy requirements of the people of Lagos State. It is in view of this that the present administration in Lagos State has now embarked on a comprehensive State wide power audit program. We have completed the power audit for Alausa and we are preparing to conclude the procurement for the Alausa IPP

This Power Audit Program will in the first phase cover Matori Industrial Estate, Ilupeju Industrial Estate, Ikorodu Industrial Estate, Somolu printing community and Ikeja GRA to support the High Court, State Teaching Hospitals, the Police Command and Headquarters to mention a few.

The objective of this undertaking is to accurately determine the actual power requirements of key industrial and commercial zones on the one hand and the residential areas on the other. This data will subsequently be useful in developing a Power Master plan for Lagos that will complement the power reform agenda of the Federal Government in this sector.

As part of our obligation to provide information on State activities, we have created a Lagos State online communication portal dedicated to power sector development and efforts in Lagos state; www.lagospowerprojects.gov.ng.

This website affords members of the public the opportunity to receive up to date and a stage by stage information on any electricity power project embarked upon by the Government of Lagos State. Visitors to this site will also be able to view interactive virtual tours in that regard.

From our initial objective of "Powering Justice", we are today commissioning the Island Power Project ("IPP"). This project has been designed to allow for future expansion. Phase II of IPP is due to commence shortly, the scope of the plant will be increased to 114 MW.

The second phase, which is specifically designed for commercial off- takers and some public infrastructure, will cater for over 500 privately owned businesses and multi-nationals in the Central Business District of Lagos particularly in the Broad Street and Marina axis.

It is also going to focus on the supply of power to some other Lagos State Government facilities located in that axis including the E- Learning Centre (Odulami Street), Massey Children's Hospital (Massey Street), Onikan Health Centre (King George V Street), City Hall (Catholic Mission Street) and Freedom Park (Broad Street).

This Phase will in addition extend the existing streetlights range to cover more streets. It is expected that this second Phase will be completed and commissioned in about 24 months from today, if we can get the required supply of gas into this area.

Before concluding, I will like to acknowledge the efforts and contributions of Island Power Limited, (an affiliate of the Negris Group in the realization of this project). I also express appreciation to the distribution network contractor, Messrs JKN Nigeria Limited and many others who contributed to the timely and efficient delivery of this project. It will be invidious for me to attempt to individually acknowledge all of them. They have all proven to be reliable partners towards the achievement of our common objective.

This project has demonstrated that the provision of electricity is not rocket science. With the right political will, resource application and dedication, we can eradicate darkness from our land by a Government that is committed and cares.

This project is also very strong evidence, if any is required, of the power of the private sector to drive change in any society and our Government takes pride in this project and the many other PPPs that it has enabled, to expand the opportunities in this economy.

Finally and as we gather here today to celebrate another milestone in the actualization of the Lagos of our dream, I am convinced that the event of today will only strengthen our desire to bring the most eluding essential service to the good people of Lagos State.

I thank you for your attention.

Eko o ni baje!

Babatunde Raji Fashola, SAN
Governor of Lagos State