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DE RUEHOS #0065/01 0421206
ZNR UUUUU ZZH
P 111206Z FEB 09
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC PRIORITY 0491
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 0112
RUFOADA/JAC MOLESWORTH AFB UK
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
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RUEWMFD/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 04 LAGOS 000065 
 
SENSITIVE 
SIPDIS 
 
DOE FOR GPERSON, CHAYLOCK 
DEPARTMENT PASS TO USTR-AGAMA 
TREASURY FOR PETERS, IERONIMO, AND HALL 
DOC OF 3317/ITA/OA/KBURRESS AND 3130/USFC/IOI/ANESA/CREED 
USAID/AFR FOR ATWOOD 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ECON EINV PGOV NI
SUBJECT: NIGERIA: QUARTERLY STATUS REPORT OF SOUTHERN POWER 
PROJECTS 
 
¶1. (U) To better understand the myriad of rumored, proposed, 
planned, and current power projects in southern Nigeria, Post 
has compiled a list of known independent power projects 
(IPPs) in the South-South, South-East, and South-West and 
their status of as 1 February 2009.  A list of GON-financed 
power plants currently under development in southern Nigeria 
is also included.  However, operational, GON-owned power 
plants, like the Egbin power station, are not included.  The 
list was developed using information from the Nigerian 
Electricity Regulatory Commission (NERC), Mission contacts, 
press reporting, and construction contractor websites.   Post 
plans to review and update the list quarterly to inform those 
readers interested in the electricity sector and the state of 
power development in southern Nigeria.  Post welcomes 
feedback from interested readers and suggestions for 
additional information that readers would like included in 
future updates. 
 
¶2. (SBU) It is important to note that the Chairman and senior 
members of the NERC have recently been arrested by the 
country's Economic and Financial Crimes Commission.  We will 
be following up on the reasons for the arrests, but early 
rumors suggest illicit enrichment. 
 
IPPs Completed, Generating Power 
------------------------------- 
 
¶3. (U) The following are operating IPPs transmitting power to 
customers.  NERC began requiring  and issuing licenses for 
IPPs in August 2006.  Hence some projects sought licenses 
after during construction or after completion and 
commencement of operations. 
 
--Project: Nigerian Agip Oil Co, Kwale-Okpai, Delta State, 
480MW on-grid. 
Note: License awarded November 2007.  Plans to add additional 
480MW delayed due to dispute with Power Holding Company of 
Nigeria over terms of power purchase agreement. 
 
--Project: AES Nigeria Barge, Apapa, Lagos State, 270MW 
on-grid. 
Note: License awarded November 2007.  AES in international 
arbitration with Power Holding Company of Nigeria over terms 
of power purchase agreement. 
 
--Project: Shell Petroleum Development Corporation Afam VI, 
Afam, Rivers State, 642MW on-grid. 
Note: License awarded June 2007. Began power generation 
October 2008.  Part of larger power plant complex known as 
Afam.  Intermittent operation due to "militant" attacks on 
oil pipelines in area. 
 
IPPs Completed, Not Generating Power 
------------------------------------ 
 
¶4. (U) The following IPPs have been completed, but are not 
generating power.  Supplies of natural gas to domestic 
customers remains problematic.  Poor gas regulation, confused 
gas pricing policies, and "militant" activity in the Niger 
Delta are the main reasons. 
 
--Project: Ibom Power Ltd, Ikot Abasi, Akwa Ibom State, 190MW 
on-grid. 
Note: License awarded May 2008.  Lacks gas supply. 
 
--Project: First Independent Power Company Ltd, Omoku, Rivers 
State, 150MW on-grid. 
Note:  License awarded May 2007.  Owned by Rivers State 
government.  Lacks gas supply. 
 
--Project: First Independent Power Company Ltd, Trans-Amadi, 
Rivers State, 136MW on-grid. 
Note:  License awarded May 2007.  Owned by Rivers State 
government.  Lacks gas supply. 
 
 
LAGOS 00000065  002 OF 004 
 
 
--Project: First Independent Power Company Ltd, Eleme, Rivers 
State, 95MW on-grid. 
Note:  License awarded May 2007.  Owned by Rivers State 
government.  First 25MW completed.  70MW expansion under 
construction.  Lacks gas supply. 
 
IPPs Under Construction: 
------------------------ 
 
¶5. (U) The following projects are in various stages of 
construction.  Commencement of construction does not imply 
the project has a power off-take or gas supply agreement. 
 
--Project: Geometric Power Limited, Aba, Abia State, 140MW 
off-grid. 
Note: License awarded December 2006.  For commercial and 
residential customers in Aba.  Nearing completion.  Has gas 
supply agreement. 
 
--Project: Ethiope Energy Limited, Ogorode Sapele, Delta 
State, 2800MW on-grid. 
Note: License awarded August 2006.  Contractor reportedly 
commenced site preparation. 
 
--Project: Ikorodu Industrial Power Ltd (Negris), Ikorodu, 
Lagos, State, 39MW off-grid. 
Note: License awarded December 2006.  For industrial 
customers in Ikorodu. 
 
--Project: Ewekoro Power Ltd (Negris), Ewekoro Ogun State, 
12.5MW off-grid. 
Note: License awarded December 2006.  Embedded generation of 
for Ewokoro Cement Company. 
 
IPP License Awarded by NERC, No Construction 
-------------------------------------------- 
 
¶6. (U)  The following projects have been awarded IPP licenses 
from NERC, but construction has not begun.  Applicants for 
IPP licenses do not have to demonstrate economic feasibility 
of the project nor have approved fuel purchase or power 
off-take agreements.  Mission contacts working in the sector 
suspect some of these companies may have obtained licenses as 
speculative ventures and have no intention of building power 
plants. 
 
--Project: ICS Power Ltd, Alaoji, Abia State, 624MW on-grid. 
Note: License issued August 2006.  Status unknown. 
 
--Project: Supertek Nigeria Ltd, Akwete, Abia State, 1,000MW 
on-grid. 
Note: License awarded August 2006.  Status unknown. 
 
--Project: Minaj Holdings Ltd, Nike, Enugu State, 190MW 
on-grid. 
Note: License awarded February 2008.  Only planned coal-fired 
IPP.  Status unknown. 
 
--Project: Anita Energy Ltd, Agbara, Lagos State, 90MW 
on-grid. 
Note: License awarded April 2007.  Status Unknown. 
 
--Project: Westcom Technologies and Energy Services, Lekki, 
Lagos State, 50MW off-grid. 
Note: License awarded February 2007.  For private 
residential/commercial complex on Lekki Peninsula.  Status 
unknown. 
 
--Project: Energy Company of Nigeria (Negris), Ikorodu, Lagos 
State, 140MW on-grid. 
Note: License awarded January 2008. Planned on-grid expansion 
of the Ikorodu 39MW off-grid project (See above) currently 
under construction. 
 
--Project: Westcom Technologies and Energy Service, Sagamu, 
 
LAGOS 00000065  003 OF 004 
 
 
Ogun State, 1,000MW on-grid. 
Note: License awarded August 2006. Status unknown 
 
--Project: Farm Electric Supply, Ota, Ogun State, 150MW 
on-grid. 
Note: License awarded August 2006.  Status unknown. 
 
--Project: Bresson Nigeria Ltd, Magboro, Ogun State, 60MW 
on-grid. 
Note: License awarded April 2007.  Status unknown. 
 
--Project: Ibafo Power Station Ltd, Ibafo, Ogun State, 200MW 
on-grid. 
Note: License awarded May 2007. Status unknown.  Local press 
reports a dispute between developer and local church over 
access to proposed construction site. 
 
--Project: Hudson Power Ltd, Warawa, Ogun State, 150MW 
on-grid. 
Note: License awarded May 2007.  Status Unknown. 
 
--Project: Agbara Shoreline Power Ltd, Agbara, Ogun State, 
100MW on-grid. 
Note: License awarded September 2007.  Status Unknown. 
 
--Project: Index Thermal, Onne, Rivers State, 1800MW on-grid. 
Note: License awarded November 2007.  Status unknown 
 
--Project: Notore Power Ltd, Onne, Rivers State, 50MW on-grid. 
Note: License awarded September 2008.  To be sited on 
location of defunct fertilizer plant.  Status unknown. 
 
IPPs Proposed or Planned, Not Licensed 
-------------------------------------- 
 
¶7. (U) These are proposed or planned projects for which no 
evidence of a NERC license can be found.  While they are 
occasionally are mentioned in local industry trade 
publications or general new stories about electricity in 
Nigeria, the status of these projects is in doubt. 
 
--Project: Chevron Agura IPP, Delta State, unknown, assumed 
on-grid. 
Note:  Groundbreaking ceremony held in April 2007. 
Subsequent status unknown. 
 
--Project: Total Egi Power Station, Egi, Rivers State, 440MW, 
on-grid. 
Note: Mentioned by Total on its Nigerian website.  To be 
located in a community in Total's oil block OML 158.  Status 
unknown. 
 
Federal Government Financed Power Plants 
---------------------------------------- 
 
¶8. (U) The National Integrated Power Project (NIPP) was 
launched in 2004 by former President Obasanjo as a program to 
rapidly expand power generating capacity in Nigeria.  The 
program has been beset by delays and accusations of 
corruption.  It is difficult to get an accurate picture of 
the scope of the NIPP; different sources put the number of 
southern NIPP power stations at between five and eight.  Post 
believes the plants listed below constitute the NIPP in 
southern Nigeria.  These GON-owned and financed plants are in 
various stages of development, but to date no plant has 
installed turbines.  Contacts report that 18 GE turbines are 
in ports in Nigeria awaiting installation in these NIPP 
facilites. 
 
--Project: Alaoji Power Station, Alaoji, Abia State, 540MW 
(1074MW) on-grid. 
Note: Two phase project.  Phase one to build 504MW simple 
cycle plant.  Phase two will upgrade facility to 1074MW 
combined cycle plant.  Construction ongoing. 
 
 
LAGOS 00000065  004 OF 004 
 
 
--Project: Gbarian Ubie Power Station, Gbarian, Baylesa 
State, 252MW on-grid. 
Note: Plant estimated 10 percent complete.  Community unrest 
hampering contractor access to site.  No natural gas 
connection. 
 
--Project: Calabar Power Station, Calabar, Cross River State, 
1000MW, on-grid. 
Note: Plant estimated to be 60 percent complete.  No natural 
gas connection. 
 
--Project: Sapele Power Station, Sapele, Delta State, 451MW, 
on-grid. 
Note: Expansion of existing 1020MW Sapele power station. 
Construction estimated 30 percent complete.  Gas supply to 
existing power plant intermittent. 
 
--Project: Ihovbor Power Station, Benin City, Edo State, 
900MW, on-grid. 
Note: Plant estimated to be 70 percent complete.  No natural 
gas connection.  Sometimes referred to as the "Eyean" power 
station. 
 
--Project: Ikot-Abasi (ALSCON) Power Station, Ikot Abasi, 
Akwa-Ibom State, 300MW, on grid. 
Note: Contract yet to be awarded.  Co-located with ALSCON 
aluminum smelter. 
 
--Project: Egbema Power Station, Egbema, Imo State, 378MW 
on-grid. 
Note: Plant estimated to be 20 percent complete. No natural 
gas connection. 
 
--Project: Omoku Power Station Phase II, Omoku, Rivers State, 
252MW on-grid. 
Note: Co-located with the First Independent Power Company 
IPPs listed above.  Expansion of existing power GON-owned 
facility at Omoku.  Construction ongoing. 
 
¶9. (U) This cable cleared by Embassy Abuja. 
BLAIR