Thoughts on the Aba Geometric Power Plant

10 FACTS ABOUT THE ABA GEOMETRIC POWER PLANT PROJECT

• The Aba Geometric Power Plant Project (“Project”) was initiated by Professor Bart Nnaji as far back as 2004 to address the grave effects of power shortage in Aba, Abia State, a City described as the “Taiwan of Africa” due to the resourcefulness shown by local players in adapting locally available materials to produce spare parts and other machinery.
• The Project, since its inception, faced a number of challenges including regulatory, political, financial, and legal issues, with the bulk of these issues left unresolved until 2022, leading to the Project being commissioned in February 2024.
• The Project, located in the Osisioma Industrial area of Abia State is described as the first integrated electricity facility in Nigeria, and consists of a 141 Megawatt (MW) gas fired power plant, a 27km gas pipeline, and a distribution utility to supply power to the Aba ring-fenced area. Additionally, plans are underway to install a fourth turbine to increase the generation capacity to 188 MW.
• The cost of the Project is estimated to be around US$800,000,000 (Eight Hundred Million United States Dollar).
• Some of the key players involved in the Project include the Projects Generation Company – GPAL and the Projects Distribution Company – APLE, both of which have obtained a generation license and distribution license from the Nigerian Electricity Regulatory Commission (NERC) to generate and sell electric power, and to distribute electricity to the consumers in the Aba ring-fenced area.
• The Project highlights the significance of public-private partnership in addressing the energy crisis in Nigeria. The Project received support from the Federal Government of Nigeria through a 20-year concession agreement and Geometric Power Limited acting as the project developer and now handling the Project’s operation and maintenance.Similarly, the Project received support from Private Investors, with Afreximbank acting as a notable investor having signed a US$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. ?
• The Project will produce and distribute power across nine local government areas (LGAs) within the Aba ring-fenced zone and promises the provision of 24-hour power supply to Aba residents.
• The Project is equipped with 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 fibre optic cables for seamless data communication.
• It is estimated that over 370,000 direct and indirect jobs will be created during the operational phase of the Project.
• With the installation of the fourth turbine, the Project, operating at full capacity, could potentially generate 135,360,000 kWh of electricity per month and impact about 270,720 households with an estimated energy consumption rate of 500KWh per household.

MY THOUGHTS

The significance of public-private partnership has constantly been emphasized as a viable solution to addressing energy crisis in Nigeria. The Aba Geometric Power Plant Project is a testament to what can be achieved through public-private collaboration and effective implementation.

?The Aba Geometric Power Plant Project appears to be a Project strategically positioned in the industrial South-Eastern Nigeria. The Aba metropolis is a commercial center known for its aggregation of thousands of MSMEs and mass producers of industrial goods including garment and leather products. ?

If this industrial zone can be properly harnessed, it is capable of positioning Nigeria as a leader in the global garment and leather industrial space. In 2016, the Textile, Apparel, and Footwear sector contributed N2 trillion ($6.6 billion), approximately 2% of Nigeria’s total GDP at the time, to Nigeria’s economy.

The industrial nature of the Aba Industrial City and the positioning of the Aba Geometric Power Plant Project with its complimentary benefits speaks to the overall economic impact that could be a resultant effect of the Project. What could begin as increased and reliable power supply to the people of Aba, could potentially impact the level of industrial productivity/increase in productive capacity in Aba, and subsequently result in economic gains for the Nigerian Economy, particularly at a time when the need to boost production cannot be overemphasized.?

In addition to the economic gains that could be realised from the Project, the Project can have direct impacts on businesses and the quality of life of residents in Aba, particularly in relation to improved living conditions, enhanced security, increased level of production, enhanced capacity, and increased direct foreign participation.

To guarantee the success of the Project, certain factors must be taken into consideration, including executing requisite agreements with gas suppliers, end-use consumers, and DisCos in the south-eastern region (Geometric Power Limited plans to sell excess power to the national grid), addressing tariff issues and ensuring that while it is cost reflective, it remains a fair price for consumers. Additionally, potential corporate governance issues in the operational phase of the Project must be addressed to prevent poor management of financial and operational obligations.

Finally, while the Aba Geometric Power Plant Project represents a step in the right direction, addressing the issue of unreliable power supply and critical infrastructure issues for the people of Aba and potentially serving as a model for more robust development in the Nigerian Electricity Supply Industry(NESI), collaborative effort is required to sustain the Project and to ensure optimal utilization. While industry stakeholders look on with cautious optimism, it is my hope that the Project is truly successful as it could potentially have far reaching benefits for all Nigerians. For now, I join the people of Aba in celebrating what is a significant milestone in a new era for Abia State.