Bauchi State governor, Mallam Isah Yuguda, has said that the two major projects currently being undertaken by the state government, an international airport and 140 mega watt capacity gas turbine plant would cost an estimated sum of N44 billion on completion.
Speaking to newsmen shortly after a meeting with a delegation of the Chinese working on the power plant project, the governor said the state government is in the process of awarding a contract to the company to build a power plant at the cost of $201million (about N31.7 billion).
According to him, on completion, the power plant will be expected to produce 140 mega watts, of which 40 percent will be utilised by the people of the state while the remaining will be channeled to the national grid.
“The project is about 201million dollars and we are very positive that with the power it will generate, 140 mega watts will no doubt end the power supply problem facing the state. It is a very important project not only for Bauchi state but the nation at large,” he said.
Yuguda said given the power demand as it is today, Bauchi has the capacity to consume about 40 percent and that the remaining 60 percent could be sold to the national grid for the time being.
The governor also spoke on the economic justification of the project, saying from the feasibility studies done on the project, there is every reason to believe that it is a profitable venture.
He explained that under the terms of agreement for the execution of the power plant project, the China Exim bank has gladly accepted to participate in the funding of the construction and delivery of the project.
He added that the Chinese firm had after carrying out preliminary assessment of the proposed power plant, agreed to scale down the timetable for the delivery of project from 18 months to nine months.
He assured that the project has received the blessings of the Federal Government and the National Assembly both of which have accepted to grant it a sovereign guaranty.
“I am happy to note that the project is a profitable project and the pay back period is about 5 years. We have gone very far with the assessment and the contractors have sent teams to Nigeria. Sinex are contractors to the project and all parties to the project are anxious to see to the successful take-off and completion of the project.
“The project is not only bankable it is also help in creating jobs as a result of revamping the small and medium scale industries in the state. You may also be surprised that a lot more investors and entrepreneurs would flow into the state to establish heavy industries.
“This project is a breakthrough for the entire power supply Programme of all the states of the federation because it is a project that can deliver power within the shortest possible time and we have all the raw materials to run the plant. Everything about the project is already in place, we are almost wrapping up the project. and when it comes to light, Bauchi will no more be in darkness forever,” he said.
Yuguda also said the state has almost completed the construction of new airport which will be commissioned soon by the President.