Oghareki power station

From Global Energy Monitor
Part of the Global Gas Plant Tracker, a Global Energy Monitor and Center for Media and Democracy project.

Oghareki power station is a 128-megawatt (MW) gas-fired power plant, which has started construction, but has been delayed amid corruption charges in Delta State, Nigeria.[1] It is also referred to as the Delta State IPP and the Oghara IPP.

Location

The map below shows the approximate location of the power station in Oghara I - Ethiope West LGA, Delta State, Nigeria.

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Background

The project was awarded to Davnotch Nigeria in 2009,[2][3] and one of its owners, Assemblyman Victor Ochei, was almost immediately accused of corruption,[4] along with partners Rolls Royce and PS Engineering Ltd.[5]

Accusations by Delta State stakeholders of slow-going on construction and possible criminal activity resulted in a written defense of the project by Davnotch management, saying that they expect the turbines to be shipped in August 2011 and that you can't work in the Niger Delta rainy season. They ended with a flourish:

"IF BUILDING A POWER PLANT IS THAT EASY OUR COUNTRY WOULD HAVE SOLVED HER POWER PROBLEMS A LONG TIME AGO ..."[6]

In 2012, one reason given for the delay in completing the project was the government did not adequately provide for a gas pipeline to bring natural gas to fuel the power station.[7]

In early 2015, fire burned the warehouse that stored the turbines purchased for the project, which were offsite in the town of Oghara.[8] Later that year, Vanguard called the project "abandoned" by Davnotch, reporting that:

"... weeds had overtaken the project site deserted for about a year now. The premises lay idle. The cabins, which served as temporary offices, were under lock and key, while the warehouses were principally unfinished."[1]

A visit by the five-member Delta State House of Assembly Ad Hoc Committee investigating the project a few months later found only a perimeter fence, three buildings, a gantry, and an unpaid guard.[9]

In 2016, Davnotch Ltd sued the Delta state government for debts owed to it, while the government had decided to put the project up for sale.[10]

Also in 2016, the project became embroiled in an investigation by Britain’s Serious Fraud Office into Rolls Royce's activities with a Nigerian power plant company. Rolls Royce sold the Nigerian company in 2014. Financial Times reported:

"The SFO Nigeria investigation is examining whether Rolls-Royce and its agents were involved in any bribery of government officials up to the year 2013 in connection with energy tenders in the country and a Nigerian company called PSL Engineering & Control, people familiar with the situation said."[3]

In 2017, the governor of Delta State said the government needed more funds to connect the turbines to a gas pipeline to finish the project.[11]

In 2018, a youth group, Empowerment for Unemployed Youth Initiative, petitioned Nigeria's Economic and Financial Crimes Commission (EFCC) to reopen a probe into the abandoned project.[12]

Project Details

  • Sponsor: Delta State Ministry of Power
  • Parent company: Delta State Ministry of Power
  • Location: Oghara I - Ethiope West LGA, Delta State, Nigeria
  • Coordinates: 5.948576, 5.720640 (approximate)
  • Gross capacity (under construction, but delayed): 128 MW
    • Gas turbine units 1-2: 64 MW per unit (no start-up date)

Articles and Resources

References