Sagamu IPP, Chinese Firm Sign $550m EPC Contract for 400MW Plant
NERC ranks Eko Disco overall best for 2017
Sagamu Independent Power Plant Limited (SIPP), a wholly owned Nigerian company, and private developer in power and infrastructure, has signed an Engineering, Procurement and Construction (EPC) contract with China Energy Engineering Corporation Limited (Energy China) for the construction of 400 megawatts Sagamu IPP to be located in Sagamu Local Government Area of Ogun State.
This is coming as the Nigerian Electricity Regulatory commission (NERC) has rated Eko Electricity Distribution Company (EKEDC) as the best distribution company on all performance indices for the year 2017.
With the EPC contract finalised, Energy China will now proceed with the implementation/construction of the plant estimated to cost $550 million.
Under the terms of the EPC contract, Energy China will deliver the plant on a Turnkey basis providing engineering services, local construction and balance of plant.
“The Execution of the EPC contract marks a significant milestone for the project and a major step forward in our objective of meeting the Energy needs of Nigeria. Energy China is leading the financing of the project with strong support from International banks in China. We expect to achieve Financial Close by Q3 2018,” said Managing Director/CEO of SIPP Limited, Samuel Marcus.
Commenting on the event the Representative of Energy China said, “We are very proud to be playing a key role in this landmark project. Building on our extensive experience of working around the World as one of the biggest Energy and Infrastructure Corporation especially in the power plant market, we are looking forward to the successful completion of the Project, as this will be a good Cooperation for the people of Nigeria and China”.
Construction of the plant is due to commence in 2018 and the plant will start operations in 2020. In a related development, NERC has rated Eko Electricity Distribution Company (EKEDC) as the best distribution company on all performance indices for the year 2017.