The Ondo State government, Nigeria, and Kingline Development Limited have signed the 500 MW Kingline Ondo IPP project in the Ondo State International Industrial Park, Omotoso.
The project is the first phase of a 1100 MW power plant, which will be developed on a 250 acres plot secured as a contribution from Ondo State government.
The power plant will be operated using the public private partnership (PPP) module and is expected to generate about 550 MW in the first phase using simple-cycle with combined-cycle option.
The total project investment is estimated at US$500 million. The project financing will be raised by the Global Investment Bank, the leading fund raiser.Chief Business Development Officer at Kingline Development Ltd, Akinnola Fola, stated:
"Nigerian Bulk Electricity Trading Plc (NBET) had already shared the draft PPA with us for reviewing and the necessary documentations for signing the PPA are being put together at the moment."
"Due diligence exercise is ongoing with the Gas Aggregation Company Nigeria Limited (GACN), while licensing documentation after approval to generate power under unsolicited condition on the strength of our partnership with Ondo State is under preparation. It will be submitted shortly."
The firm said the Environmental Impact Assessment is ongoing and it is in talks with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, to cover political risk.