What Nasarawa can do with 20MWs from Farin Ruwa

The project is an on going one, which however encountered a hic-up because of contractual crisis between the state and Yoojin Engineering Nigeria Limited (YENL) the firm was initially awarded contract up to completion. The project is one of those initiated by the former governor, Abdullahi Adamu, but which could not be completed before the […]

The project is an on going one, which however encountered a hic-up because of contractual crisis between the state and Yoojin Engineering Nigeria Limited (YENL) the firm was initially awarded contract up to completion. The project is one of those initiated by the former governor, Abdullahi Adamu, but which could not be completed before the tenure of that administration elapsed in 2007. It was awarded in May, 2004 at the initial contract sum of N5.4 billion, with a completion period of 36 months.  However, due to technical problems associated with the siting of the project and price fluctuations, the contract sum was later reviewed upward to N6.1 billion. Yoojin’s performance however, did not meet government’s expectation when the incumbent governor, Aliyu Akwe Doma took over from Adamu in 2007.

This led to the termination of that contract, with efforts to fast track its completion culminating in the making of a law establishing the Nasarawa Energy Company Limited (NASENCO). NASENCO was incorporated to be the focal point of the administration’s power development endeavours. The coming on board of NASENCO, paved the way for the PPP whose initiation brought in Chavy Chase for the project. The agreement was sealed last week in Lafia, at a ceremony which saw the participation of the governor, his cabinet members, the minister of information, Labaran Maku, other stakeholders in the state and representatives of the company.

The hydro electric power project is being constructed along Njiri River with origin from the base of the splashing Farin Ruwa Water Falls, across the south-east section of the state through Amba, Zali and down to the Benue River.

Construction work by Yoojin caused serious concerns, sparking up a long standing suit filed against the company and government by the community of Manger in the Farin Ruwa Development Area where the project is sited. The community, through its counsel, Barrister Tim Yiga had gone to the court in 2007 and filed a suit against YENL, the Attorney General and the ministry for works, seeking justice against the alleged invasion of Manger, upon commencement of work on the project, without due process and compensation.

The community is also seeking justice against the death of some of its people who died from flood and diseases triggered by the commencement of work in the river in 2007. The court has already taken submissions from all the witnesses produced by the community. Yet both the contractor and government were not forthcoming with their defence witnesses, a development which the community’s counsel had called “a plot to delay justice.” But an out-of-court settlement was being sought by government, leading to an approval to build effect, by the State Executive Council (SEC), late last year. The arrangement include compensation to be made available to community members.

“I am happy to state that council approved payment of compensation to the

tune of N68,416,500.00 to farmers in the area whose farm crops were destroyed in

the course of the implementation of the project”, Barrister Mamman Alakayi, state commissioner for information, announced government’s decision last year.

SEC’s decision came as part of the approval for the PPP whose agreement was sealed last week, marking the concessioning of the project. The concession agreement entails that government will commit no further funds, while Chavy Chase will sink about $40 million for its completion.

The arrangement also entails the completion of all civil works including switch yard for the generation of power within 18 months; design and construction of transmission lines in accordance with the Nigeria Electricity Regulatory Commission’s (NERC) standard. The transmission line will to start from the project site in Farin Ruwa to the Power Holding Company of Nigeria’s sub-station at Akwanga.

The contractor will also undertake Environmental Impact Assessment Studies of the project; construct a feeder road from Sisinbaki village to Manger; meet all regulatory requirements by other relevant regulatory bodies; and provide corporate responsibility charter for the community. The company is also expected to complete work on the power house; construct a 65 kilometers transmission line for the evacuation of the power generated from Farin Ruwa to the nearest distribution sub-station in Akwanga; and install turbines within the dam structure as well as construct staff quarters for the personnel who would man the plant.

The project is expected to generate 20 Mega Watts to improve power supply for domestic and industrial use, as well as generate economic activities and employment opportunities in the state.

Director General of NASENCO, Professor Suleiman Sanee Ugya had noted at the occasion that the development of an IPP was no picnic, explaining that it entails much from all partners in terms of commitment to the execution of the project.

Managing Director of Chevy Chase, Ifechukwude Okonjo had noted that as concessionaire of the project, the company would not shy away from the difficult problems that may be encountered during execution of the project. “It has been part of our tradition as a company to develop and implement ground breaking solutions for various sectorial projects in the country. Indeed, it has always been in our interest to build and continue to leave new grounds of legacy when it comes to project          development and financing”, he said.

Okonjo also said that the partnership has identified the critical success factors required to execute the project to “ensure rapid success through a systematic process of identifying gaps and mitigating the risks involved in the project”

The company reveals that it isset to do a good job because it has been able to establish clear checks and balances for both the engineering and financial aspect of the project, adding “this we know would lead to success.”

He added among other things expected to be carried out on the project, the need to increase the height of the dam structure by an additional ten meters to check the issue of flooding. The company has also indicated its willingness to work with various institutions of higher learning within the state to serve as training centre for engineering students as well as those that would man the IPP.

Weekly Trust reports had earlier revealed  that part of the policy thrust of the 2011 Appropriation Bill called “Budget of Sustainability” is the completion of all on-going projects, as well as procurement and installation of equipment for all completed projects.

Weekly Trust had also reported that Governor Doma and the people of Farin Ruwa, a community which borders Plateau State in the North-East part of the state, had discussed ways of ending the security threats facing the state, and had agreed that government must put facilities on ground to mark its presence.

Governor Doma was in Kwarra, headquarters of the development project as part of his on going “Meet the People Tour” which he undertook in May of 2010. During the tour he appraised his administration’s performance including the provision of social services in agriculture, health, education, infrastructure and other critical areas of development.

A community leader in the border town of Mama, the Madaki Mama, Alhaji Audu Lugu, made a case for the security of the border communities, insisting that security threats in the area can best be tackled if government makes its impact felt through the provision of physical structures, such as completion of the independent power project.

This is just as the administrator of the development area; Dauda Ngwai called for the completion of the project to serve as the focus for industrial development of the state. The administrator also sought the state government to implement the Farin Ruwa Eco-Tourism master plan, construct roads, bridges and culverts to link Kwarra, the headquarters with the border communities.