The Federal Government has signed a Power Purchase Agreement (PPA) with Mabon Nigeria Limited, which is currently executing a 40 megawatts hydro-power project in Dadinkowa, Gombe State, The Guardian reports.
The government, represented by the Managing Director of the Nigeria Bulk Electricity Trading Plc (NBET), Dr. Marilyn Amobi, said the agreement would enable the government buy electricity from the investor and sell to the distribution companies (DisCos). Amobi said though the government is not making initial payment now, such payment would be made based on metered capacity when the investor starts selling electricity on completion of the project.
The Project Development Consultant, Christopher Cyril, who represented Mabon Limited, noted that though the signing of the PPA had taken long before being realised, however with the signing now, the investor has been assured of return on the investments. Cyril stated that so far, $48 million had been invested on the project, which is at about 80 per cent completion while the total cost of the project is $68 million.