Lafarge Africa partners IFC, Wartsila on 260MWs generation

In a bid to demonstrate commitment towards industrailisation and development of power in Nigeria, Lafarge Africa is partnering with International Finance Corporation(IFC) and Wärtsilä to increase power supply by approximately 260 MW. 

The agreement calls for Lafarge Cement to transform WAPCO’s existing 90 megawatt dual-fuel, captive power plant into a 310 megawatt gas-fired and highly-efficient internal combustion engine power plant.

The existing 90 MW Ewekoro dual fuel engine power plant which was commissioned in 2011 and built and operated by Wärtsilä to supply power to Lafarge’s WAPCO operations would see an in the capacity of the power plant to supply approximately 260 MW to the national grid when the project is complete.

The new agreement would more than triple the output of Nigeria’s Ewekoro power plant, improving access to electricity for about 1.4 million households in the country and supporting economic growth.

IFC is a member of the World Bank Group; Lafarge is a world leader in building materials: and Wärtsilä is a leading global supplier of flexible power plants.

IFC, through IFC InfraVentures, its Global Infrastructure Project Development Fund, will provide financial and commercial structuring. Lafarge will manage the project and Wärtsilä will build and manage the power plant.

The project involves freeing some of the plant’s existing captive capacity and making it available to the national grid. It will also construct a new 220 MW engine power plant that will be connected to the national grid through a power purchase agreement with the National Bulk Energy Trading Company.

Guillaume Roux, Group CEO and Managing Director of Lafarge Africa Plc, said “Lafarge is demonstrating its value adding leadership and strong commitment to the Federal Government of Nigeria’s transformational agenda to increase power generation. We are complementing government’s efforts to boost national development through improved industrialization and economic growth. With the support of IFC and Wärtsilä, our long term partners, this project will increase the level of power generation in Nigeria.”

Also, Managing Director of Wärtsilä in Nigeria, Ade Audifferen said: “Wärtsilä will provide our expertise and experience in the development and implementation of high efficiency and flexible internal combustion engine-based power generation projects around the world.”

“The Wärtsilä EPC and operation and maintenance package combined with our strong presence in Nigeria will mitigate the operational risks over the life of the project. With the support of our development partners Lafarge and IFC, we can provide cost-efficient and reliable power supply that will increase economic productivity in Nigeria,” he said.

Richard Arkutu, IFC Manager for the Africa Special Initiative for Infrastructure, said: “In partnership with Lafarge and Wärtsilä, IFC is eager support the development of this power project. This new project demonstrates IFC’s support for the Federal Government of Nigeria under the World Bank Group’s Energy Business Plan for Nigeria. The project will open a new avenue for Nigeria’s power generation by leveraging existing captive plants owned by large industrial clients, allowing for fast-track expansion for new capacity that can supply the national grid.”

Mr. Arkutu added that the project, which is a fast-track project hopes to cost about $400 million and its duration is expected to last for 18 months.  

Furthermore, the Minister of state for power, Mohamed Wakil said it is one of the biggest projects embarked on by a cement company.

“A total of 260 MW is what we are expecting and about 220 MW is coming to the national grid. I think it is commendable,” Wakil stated.

The World Bank Group’s Nigeria Energy Business Plan is a comprehensive approach by IFC, The World Bank, and MIGA to support each segment of the gas to power value chain. 

Source : Tribune

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