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-The Nation, 27th March 2014, by John Ofikhenua, Abuja

Bauchi State Governor Isa Yuguda said ...the state would generate 1,000 – 2,000 megawatts in the next three years. He spoke in Abuja when he received a licence for the state-owned Yankari Power Company Limited to generate 35 megawatts from the Nigeria Electricity Regulatory Commission (NERC).

The governor said the 35-megawatt project would be completed in the next three months.

Asked about funding, the governor said the state was a beneficiary in the $1.6 billion loan the Federal Government secured from the China-Exim Bank.

He said the state would get $200 million from the China-Exim Bank facility to generate 120 megawatts, adding the state would also access a loan from the Bank of Industry (BOI).

“I am happy to announce that the Federal Government has graciously accommodated this project in its funding arrangements with the China Exim Bank. We are one of the beneficiaries of the $1.6billion facility from the bank. This will be for 35 years”.

“We are also looking for the counterpart funding from the Bank of Industry for the electricity intervention fund provided by Mr. President. Sovereign Guarantee has been provided. With the equity that the Bauchi State government has already provided, it is sufficient for the beginning to the end of the first phase of the power plant.

“On the issue of gas, this power plant will not run on only gas, it can run on crude oil, it can run on LPFO. So, we have other options. If gas cannot fix it, LPFO can fix it, if LPFO cannot fix it, crude oil can fix it.

“And we have so many sources. I want to also add that we have gas in Yankari Basin extending to Gombe. There is a well with 30 billion cubic feet of gas.”

The plant is located at Gundu Industrial Layout, Bauchi. The power generated from the plant is to be evacuated into the distribution network operated by the Jos Electricity Distribution Company.

The parties have entered into a Memorandum of Understanding, which provides the framework for the collaboration between the parties for the connection of the IPP to the distribution network.

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