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Thursday, February 29, 2024
The 141 MW Aba Integrated Power Project (Aba IPP), an Afreximbank-financed project, was officially commissioned in Abia State by the Vice President of the Federal Republic of Nigeria, H.E Kashim Shettima. A first of its kind in Nigeria, the Aba IPP is a pioneering initiative capable of generating and distributing 141 MW of its produced power across nine local government areas (LGAs) within the Aba ring-fenced zone.
Adequate distribution of energy is a cornerstone for national development, playing a critical role in facilitating industrialization and trade. Recognizing the challenges in the sector such as inadequate liquidity, high level of debt, and a lack of profitability, Afreximbank continues to support energy projects on the continent and has committed in excess of $4.6 billion to Africa’s power sector since inception. With approximately $900 million of funding in Nigeria, the Bank is one of the leading financiers in the Nigerian power sector. In 2021, Afreximbank signed a $50 million term loan facility with Geometric Power Limited to support the completion of the generation and distribution infrastructure, commissioning of the gas supply pipeline and commencement of operations of the project.
Speaking at the official launch ceremony, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said: “Afreximbank is proud to be part of this great milestone achievement in Nigeria. The 141MW Aba IPP underscores what can be achieved when public and private sector stakeholders join forces to impact humanity. As champions of trade and industrialization initiatives in Africa, we believe that it is projects like this embedded IPP that will catalyze trade and economic development in Nigeria and across the region.”
The Aba IPP is unique as it is the only electricity company in Nigeria that is fully vertically integrated with embedded generation and distribution capabilities. This model ensures the Aba IPP can supply power directly to its immediate community, prioritizing local needs and distributing surplus power to Nigeria’s national power grid. This ground-breaking approach ensures constant power supply in the ring-fenced area and addressing the challenges associated with the national power grid. Furthermore, the integrated structure fosters value creation through improved cost management at various stages in the energy value chain: generation, distribution, and collection.
The Aba IPP is equipped with renowned world class infrastructure including three GE LM6000 Gas turbines, with a capacity to produce up to 47MW each. The power plant is also equipped with a 27km gas pipeline to ensure consistent fuel supply, three rehabilitated distribution substations, five new additional substations and 140km of 33kV/11kV lines using fiber optic cables for seamless data communication.
Strategically positioned in the industrial South-Eastern Nigeria, the Aba metropolis is one of the most commercial areas in West Africa, renowned for its cottage and small-scale industries specializing in the craftsmanship of leather goods, fabrics and related services. In addition to increased power supply and reliability, the Aba IPP is expected to enhance industrialization efforts and increase production of small and medium-scale enterprises, as well as local industries.
According to Geometric Power, over 370,000 direct and indirect jobs would be created during the operational phase of the project. In addition, there are significant indirect benefits for the supporting industries including the development of road infrastructure, improvement in local services including enhanced water supply, schools and healthcare facilities, a boost in agricultural productivity due to a more reliable power supply, as well as increased support for rural electrification programs and enhanced tourism and leisure opportunities.
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