In its drive towards total transformation of all sectors of the state’s economy, the Oyo State Government yesterday partnered international investor, Highland Energy Solution Services Limited (HESSL), for power generation.
The investment would be solely financed by HESSL, and according to its promoter, it would cost $25 million which is expected to commence full operation within the next one year.
The Deputy Chief of Staff to the state Governor, Mr. Abimbola Adekanbi, who spoke on behalf of the government at the press conference to unveil the investors in Ibadan, said the project would be based on Build, Operate and Transfer (BOT).
Adekanbi said the project would be handed over to the state government or renewed after the first 25years of operating the company by the HESSL.
The site of the project is at Ajakanga village in Oluyole Local Government Area of the state.
The unique aspect of the project, according to him, is that it’s geared towards converting waste to electricity.
The Chief Executive Officer of HESSL, Akinpelu Shogunle, said the aim of the project was to put the state at the top of electricity generation where adequate and needed megawatts would be guaranteed.
He stressed that the project which would be solely funded by the company through Stanbic Bank (which would provide the needed funds), would take cognisance of all the existing federal laws in electricity generation.
Shogunle maintained that after completion, the project would be left to the Ibadan Electricity Distribution Company (IBEDC) for distribution while the National Electricity Regulatory Commission (NERC) would be in charge to regulate the charges in order to ensure that customers are not shortchanged.
He added that the project would provide 25, 000 indirect and 200,000 direct jobs for indigenes of the area and the state at large.
The state Commissioner for Information and Orientation, Prince Gbade Lana, said the state contribution to the project was not on the basis of funds but provision of enabling environment for the company and other investors in the areas of land, motorable roads, water and other social amenities.
Another speaker, Adebisi Adesina, who is the chairman of the state solid waste management authority, said the project which was a Public Private Partnership (PPP) ‘waste-to-wealth initiative’ has recognised the needed environmental impact assessment.
“With the socio-economic indices examined; private resources made available and rate of returns ascertained as well as memorandum of agreement signed, these steps are clear indications that this administration is ready to take the bull by the horn,” he said.
Adesina added that the government has taken cognizance of the capability of the company to deliver, and this has convinced it to give the company the approval to do so.
“Since the inception of this administration, the authority has received several proposals on ‘waste to energy’, medical waste treatment, biogas, organic fertilizers and also examined the determination, resourcefulness, practicability of the proposal and sort the chaff from the grains and come up with reputable companies who can deliver,” Adesina noted.