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ONDO SIGNS MoU ON POWER PROJECT TO BOOST ELECTRICITY SUPPLY, INVESTMENT
…Project Expected To Deliver Major Economic And Energy Benefits – SSG Taiwo Fasoranti
Ondo State government has signed a joint venture agreement with a private firm in order to boost electricity generation in the state.
The agreement, which is between the Ondo State government and ASB Valiant Company Limited is aimed to revamp, manage and operate the Ore 30MW Tri-fuel Independent Power Plant project at Ore International Park, Omotosho, Ore in Odigbo Local Government Area under a Public Private Partnership model of joint venture in the state.
Secretary to the Ondo State Government, Dr. Taiwo Fasoranti, while signing the document on behalf of the state government, stated that the new partnership between government and the company will revive a long-delayed power project and significantly boost electricity generation in the state.
Fasoranti said that the project is expected to deliver major economic and energy benefits, including improved electricity supply, increased investment and job creation, adding that the agreement represents a formal step toward collaboration between the state government and private sector investors to develop new power infrastructure.
He noted that the MoU establishes the framework for cooperation, outlines the intentions of both parties and allows detailed project planning to begin.
The agreements he explained, is important in attracting both local and international investors into the power sector, stating that electricity projects typically require significant financial commitments.
The SSG said that Governor Lucky Orimisan Aiyedatiwa has repositioned the state for investment through urban infrastructure, which has also received significant attention in line with ‘OUR EASE’ Agenda of the present administration – a seven-point policy framework designed to accelerate economic growth, improve governance and enhance the quality of life for residents of the state.
He noted that the governor has commissioned and inspected several road projects across the 18 local government areas of the state to reduce congestion, modernising the city’s transport network as well as enticing investors into the state.
The governor, he said, has embraced the construction and expansion of key metropolitan roads in the state,
installation of modern street lighting systems to enhance safety and night-time economic activities, as well as upgrade of drainage systems to prevent flooding during the rainy season, adding that “improved urban infrastructure is necessary to attract investment and support Ondo State’s growing population.”
Dr. Fasoranti said that once the project is implemented, it will strengthen electricity generation within the state, reduce reliance on the national grid and improve power availability for industries, businesses, and residential communities, saying “Improved power supply is widely regarded as a key driver of industrial growth, as manufacturers and investors often prefer locations with reliable electricity.
“The development is also expected to create employment opportunities. During the construction phase, engineers, technicians, and other skilled and unskilled workers will be required. In the long term, additional jobs will be generated in plant operations, maintenance, logistics and administration.
“Beyond job creation, the project could stimulate broader economic development by attracting new industries and encouraging expansion of existing businesses.”
Noting that stable electricity supply often leads to the growth of industrial clusters, commercial activities and small and medium-scale enterprises, he said that the partnership may also bring advanced technology and technical expertise into the state’s energy sector, which will assist in building local capacity in power generation and infrastructure management.
President/CEO ASB Valiant Company Limited, Ayodele Olasimbo Ikumapayi described it as the parent company of ASB Valiant, an international ISO-certified Engineering, Procurement and Construction, EPC, firm, which had originally been contracted by the government in 2012 to construct a tri-fuel power plant at the Ore Industrial Park.
He explained that the power plant was completed within two years, noting that it has remained idle for several years due to the absence of key resources required for commissioning and operation.
The project, which he said began under a previous administration, is being revived under the government of Governor Aiyedatiwa through a joint venture arrangement aimed at revamping, operating and managing the facility.
The company’s chief executive added that the new agreement will allow the private sector partner to rehabilitate the plant and bring it into operation, while also expanding its capacity.
He said, “This partnership will enable us to revamp the existing power plant and ensure that it finally becomes operational after years of waiting.”
He commended the state government for steps taken to reform its power sector by passing and implementing its own electricity law, he stated that with an estimated population of more than 5.3 million people, the state requires between 1,500 and 2,000 megawatts (MW) of electricity to adequately serve its industrial, commercial and residential sectors.
He hinted that the existing facility has a capacity of 30 MW adding that plans are underway to expand the plant to 100 MW as soon as operations begin adding that the power generated will primarily support industrial activities at the Ore industrial park, while any surplus electricity could be fed back into the state’s power network.
He said that a major driver of the expansion is the planned development of a 2,000-ton-per-day liquefied natural gas, LNG, plant within the same industrial park.
He added, “The LNG facility, which already has regulatory approvals, is expected to require about 40 MW of electricity once fully operational.
“This means that the power plant will not only supply energy for the LNG facility and other industrial operations within the park but could also support electricity supply to other parts of Ondo State.”
He emphasised that the energy and industrial expansion project is expected to attract substantial investment into the state noting that the broader investment tied to the partnership is projected to approach half a billion dollars.
“The project is also expected to generate significant employment opportunities, with an estimated 1,500 direct jobs during construction and operations.
“Additional economic activity will be created through logistics and supply chains. The LNG facility alone is projected to handle around 200 LNG trailers daily, creating further demand for drivers, technicians, maintenance staff and operational personnel.”
He expressed optimism that the partnership would accelerate industrial growth in the Ore industrial corridor while improving electricity access for residents and businesses.
If successfully implemented, the revitalized power plant and LNG facility, according to Ikumapayi, are expected to strengthen Ondo State’s energy infrastructure, support industrial expansion and reduce reliance on limited national grid supply adding that it can also position the Ore industrial hub as a key energy and manufacturing center in South-Western Nigeria
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