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Jonathan inaugurates N16 billion Delta gas project in Warri

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President Goodluck Jonathan at the official ground breaking ceremony of the Ogidigben Gas Industrial City and the Gbaramatu Deep Sea Port in Warri South West LGA of Delta State... yesterday. 

President Goodluck Jonathan at the official ground breaking ceremony of the Ogidigben Gas Industrial City and the Gbaramatu Deep Sea Port in Warri South West LGA of Delta State… yesterday.

HOPES are now high for the commissioning of Geometric Power’s 141MW Aba Power Plant, as President Goodluck Jonathan has intervened to help resolve the lingering crisis that had hindered its take-off.

Also yesterday, President Jonathan performed the long-awaited ground breaking of the N16 billion Delta Gas City project, now re-named Gas Revolution Industry Park (GRID), at Ogidigben and a deep sea port at Gbaramatu, both in Delta State.

Accompanied by Governor Emmanuel Uduaghan and several ministers, including the Minister of Petroleum Resources, Diezani Allison-Madueke, Jonathan said the delay in the exercise was because of the communal crisis between the Ijaw and Itsekiri over a name for the project.

The ceremony was initially shifted from May to November 2014, and then to yesterday, while the Delta State Government mediated in the dispute.

Jonathan said the GRIP would be Africa’s largest gas and fertiliser export processing zone when completed and would generate thousands of jobs for citizens, adding that about 3,000 jobs would be created during the construction phase and many more when completed

“It is my intention to make the gas park most investor- friendly,” he said. “It will be an export processing zone to attract global market. This project will meet world standard.”

He further announced the setting up of a special steering committee, headed by Allison-Madueke, to oversee the project, while reporting to the Federal Executive Council on a weekly basis.

Geometrics Power is presently at loggerheads with the Bureau for Public Enterprises (BPE), which sold aspects of the Aba electricity distribution zone to Interstate (new owners of Enugu Electricity Distribution Company) in spite of a 2005 deal that marked and concessioned the zone to Geometric to feed its power directly to Aba and environs.

The Federal Government in 2005 concessioned Aba metropolis as the only security of the investment in the project instead of the normal sovereign guarantee. We have met the terms of our concession agreement with the Federal Government by building this 141MW power plant with state of the art equipment from General Electric (GE) and rehabilitating the entire distribution network in Aba

A statement yesterday from Geometric Power disclosed that President Jonathan visited the plant in Aba this week and described the situation as man-made error that has to be fixed. Jonathan, who inspected facilities at the plant, was said to have vowed to resolve the issue so that electricity could flow to intended beneficiaries.

Noting that there was no need for more committees on the issue, he promised to a arrange meeting of the three parties to the matter – Geometric Power, Enugu Disco and the Federal Government (BPE, among others).

He was also quoted to have commended the promoter of the project and immediate past Minister of Power, Prof. Bart Nnaji, for his strong heart, stressing that most people in his situation would have had a heart attack.
Jonathan was said to have repeated that comment at subsequent meetings with Aba Peoples Democratic Party (PDP) stakeholders, while Nnaji described the power plant as a child of necessity.

“The desire of Aba industrialists, including the small and medium scale industries, and our desire to contribute our quota to increasing power supply in the nation met over 10 years ago,” Nnaji said.

“We realised that the best way to ensure that this city will quickly have reliable and affordable electricity is to build this off-grid power project that serves the Aba metropolis. Mr. President, this convergence of desire for reliable electricity is what led us to this historic Aba Integrated Power Project.

At that time, I and our development partners from the IFC of the World Bank, the European Investment Bank (EIB) and the Emerging Africa Infrastructure Fund (now known as FMFM), wanted to find a business model for power development in Nigeria that is sustainable, can stand on its own, and can be easily replicated by various investors in other major cities in Nigeria.

“We recognised that the nation will not be able to afford sovereign guarantee for all of its power needs, we therefore developed a model of customised embedded generation that would not require sovereign guarantee.

“Consequently, we set about developing this integrated power project to satisfy the electricity needs of Aba metropolis at a time the Power Sector Reform Act of 2005 was not yet enacted.”

On the contending issues, he noted: “The Federal Government in 2005 concessioned Aba metropolis as the only security of the investment in the project instead of the normal sovereign guarantee.

“We have met the terms of our concession agreement with the Federal Government by building this 141MW power plant with state of the art equipment from General Electric (GE) and rehabilitating the entire distribution network in Aba.

“In addition to the power plant, we have built over 105km of 33KV overhead lines within the Aba metropolis. You can see Mr. President that the steel tubular poles used to build the 33KV line infrastructure is unlike any other in Nigeria.

“We have also built over 40km of new 11KV lines in Aba. We have completed five new sub-stations consisting of the power plant’s 3x60MVA sub-station; four brand new 2x15MVA sub-stations at various parts of Aba town.

“In addition, we have refurbished the only three existing PHCN sub-stations, which were dilapidated, by building three brand new control buildings with outdoor sub-station gantries within the premises of the existing PHCN sub-stations.

To ensure the reliability of gas supply, we built a 27km gas pipeline from Imo River to this power plant, and the gas infrastructure to support the supply of reliable gas to the plant. To date, we have invested over $500 million (or in today’s money over N100 billion) in this project.”

However, Nnaji accused BPE of double selling the Aba metropolis (which includes Aba and Ariaria Electricity Business Districts) – to his firm and to Interstate Electric – as part of the sale of Enugu Disco, “in spite of the fact that the agreement we have with the Federal Government clearly states that whenever there is privatisation, our company has first right to purchase the facility in Aba hence our heavy investment in this project.

“The investors and stakeholders include members of the Aba Business Community, USAID and our banks, especially Diamond Bank. However, the painful fact is that this critical issue has been left festering since November 2013.

“It costs our company $3.5 million in bank interest charges alone, plus over N30 million for insurance coverage and other operational expenses every single month to carry a project that is not yielding any revenue due to the deliberate, hostile and crippling action of Enugu Disco and the BPE over 15 months ago.”



36 Comments
  • Kufere

    Makes so much sense to me!

  • Enumah

    A robust step for fruitful achievement indeed, i commend Jonathan as always he has shown his competence.

  • nwaeke

    JONATHAN IS COMING BACK.. THIS SEALS IT.

  • Etega

    PGEJ na u we know ooo

  • Ify Onabu

    How much does this project cost? 16 billion dollars or 16 billion naira? We expect to be accurately informed.

    • Papers like under reporting GEJ’S performance. It is in dollars.

  • emmanuel

    carry on Mr President we are solidly behind you

  • kingsley obi

    The President has been so active, even at time when elections are just around the corner he is inaugurating projects.

  • uzo

    come saturday we will vote again for you Mr President

  • faith adams

    I am sure the good people of Delta State will be very happy.

  • Dr Sam Nwiyordee

    I see more employment opportunities for Nigerians.

  • kemi

    PGEJ you are a blessing to nigeria

  • sofia williams

    This is just the beginning of more goodies to come, UP GEJ.

  • carry on with the works sir, i commend your efforts on development.

  • chinwe davis

    more power to your elbow, we believe in you, #team GEJ now till 2019.

  • impressive, we know more will be done when re-elected…

  • Osanebi Osakuni

    Nigeria has enormous challenges, yes but Mr President is doing his best. This is an controvertible truth propaganda against him notwithstanding. Mr President I wish you good-luck tomorrow.

    • mike

      Sai baba JOE

  • TheApostle Yochanan

    What is impressive about this. I don’t get it, this project started in 2005, Jonathan came into power in 2011… These guys have been trying to solve this chaos for 15months. Under OBJ this would never have been an issue. Now 24hrs before an election GEJ is assuring these guys he will sort them out. NONSENSE. It’s simple incompetence – I will end corruption in oil and gas sector in 4 yrs, with Deziani there. Pschewwwww

    • EduMainMan1/Stuttsgat

      OBJ did not rule Nigeria in 2005?
      You are a Clown lost from the Circus

      • TheApostle Yochanan

        My point exactly – the educational system in Nigeria is so rubbish people like you can’t even read and if you read you can’t understand and when you are about to understand egunje and corruption blocks your senses and you simply don’t stand a chance.
        I said this project started under OBJ and now GEJ wants to take credit for it. When a competent leader was in power the 15months delay to the commissioning of this amazing project would have been non-existent. 15months that Aba people should have been enjoying Electricity and still GEJ says they will sort it out in Aso Rock. Mumuism

        • Ejiofor

          You shouldn’t have join issues with that moron called EduMainMan1/Stuttsgat. Your post is too intelligently sophisticated for him to comprehend. Most of these guys are terrible illiterate hawking in the traffic.Can you imagine him saying OBJ did not rule Nigeria in 2005. May be Ojukwu did. I feel very sorry for my Igbo brothers, because hey will regret pitching their tent with GEJ in tomorrow’s election. The basis for supporting him is not there. It is obvious GEJ cannot win tomorrow’s election. All Ndigbo votes cannot make him win. So what is the sense in their uncontrollable support for GEJ? Nothing. Even South South are not supporting him like Ndigbo. Is Ndigbo jinxed? It is important that some of us caution them. By the time post election hostility starts against our people everywhere, they are they will then be finding people to blame for our self inflicted problems. You can imagine the rubbish they are doing to Yoruba people in Lagos forgetting that they have immense properties in Lagos. If Yoruba people decides not to issue them C of O’s for their properties in Lagos, is it GEJ that will come and give them after he most have been thoroughly defeated. Quite a senselessness and unsolicited, wasteful support. A word is enough for the wise.

          • You have left the issue and veered off into a tribalistic tragectory. Just as yorubas can choose to support Buhari, the igbos should support whom they choose. Even the lagos you mention has been very harsh to its residents. They abandon areas inhabited by non yorubas, tax people hellishly etc. Why should igbos follow Buhari? What has he done in the SE since he was minister of petroleum for 4 years, head of state, chairman of PTF for 5 years. He even participated in murdering them during the civil war without remorse.

    • AMARA.C

      power project is continue project because you never achieved it in 4 yrs despite the fact that previous leaders do not do much ground work on it.jonathan impressed the road map for it to drive smoothly.

    • mike

      commit succide

  • Asuquo Bassey

    The Gas City/deep Sea project will cost 16 billion dollars, I commend and congratulates/thanks Mr President, Minister of Petroleum, Trade and industry, Transportation, Delta State and entire Nigeria for this great and wonderful project. I want Mr President to act very fast on this case between Geometric Power Company, BPE and Enugu Discos. Prof Nnaji meant well for Nigeria especially Aba business environment of Abia State people. It is very sad, because BPE suppose to remove Aba metropolis from the selling of distribution lines to Enugu Discos since Geometric have earlier had agreement with FG, please President GEJ help and resolve this problem to avoid the continuing lost of revenues, resources and payment of interest on loan by Geometric. May Almighty God grant you wisdom, graces our dear president to resolve this matter amicably in Jesus Name, Amen. Thanks

    • AMARA.C

      you understand the story well

  • EduMainMan1/Stuttsgat

    Are the Itsekiris satisfied that the president has fulfilled his promise?
    No more Vile Vituperation one hopes

  • Ejiofor

    GEJ is a very deceitful Person. He is even dishonest to his own people. In the North he is usually commissioning complete projects, like the bridge in Kano etc, in the SS and SE it is always groundbreaking. Mumu too are applauding him. What a tragedy. What becomes of all these projects when GMB wins tomorrow’s election. Brainlessness celebrated.

    • What did Buhari commission in the SE? He was minister of petroleum for 4 years, head of state for 2 years and PTF chairman for 5 years. Rather he was a war criminal, marginalized the SE in his military cabinet with 1 minister out of 15. He fought and Denied an igbo from being oau secretary general in favour of a fellow Fulani from niger. Buhari destroyed a lot of igbo businesses via import licensing corruption. Gej rebuild benin ore road, built Enugu airport to international status, ensures kidnapped was checked in the SE so progress can happen, built a university in ebonyi state, second niger bridge is a good deal, he has commissioned alaoji power plant, egbema is coming up, onitsha river port is there, igbos are well represented in his regime.

      • Ejiofor

        You must be an irredeemable blind GEJ follower. Few of us understand perfectly the sentiment of some of our Igbo brothers about GEJ. All we are saying is that it has no collateral benefit to Ndigbo. o be on safe side we dont need to put all our eggs in one basket. Most of what you stated above are nothing but obvious lies. Imagine you saying 17hrs of electricity supply in Aba. If you go to Aba and say this type of rubbish, you will be stone to death. GEJ that can not fix any road in the whole SE. I doubt if you are aware that Buhari’s daughter is married to an Anambra man. You think you are the only Igbo man. You have a choice to vote for whom ever you choose to vote for tomorrow. However, if your GEJ did not win tomorrow, your children will pay part of the consequence in future.

        • The best way to play politics is to assess where your interest lies and boldly identify and become significant. That is why igbos now matter. The curse of the igbo man was speaking with divergent voices. Now they are being courted even in lagos state. I repeat, what has Buhari done in the SE? Exactly destruction and opprobrium.

    • AMARA.C

      please be fair to mr president ,Aba power in alaoji is completed and is working ,he commissioned new ones to continue,i dont know were you reside but to be sincere aba is now boast with 17 hrs electricity every day.that is why continuity is needed for him to finish his job,even the worst that will happen to nigeria if buhari won,is abolish of hard fought earned national confab report,you know apc do not support it,nigeria is a fake nation.and will be closed to be a nation if nation confab report is implemented,i wish jonathan won and continued with that.

    • mike

      Brainless ahmed impersonating EJIOFOR..Vote for A MAN who killed your kinsmen in coldblood

  • This is 16 billion dollars not naira. This is the type of under reporting that gej suffers. After this, goons will still spout that he has done nothing.

  • NigerDeltaWatch

    xxx Thank you LORD God for the victory of your Son – President Goodluck Ebele Jonathan in the Polls.
    Thank you LORD God Almighty!