Hydro China and Harbin Electric Corporation - Two Chinese companies, Hydro China and Harbin Electric Corporation yesterday signed a contract of $81,747,642.49 (about N12.2 billion) with the Power Holding Company of Nigeria (PHCN) to rehabilitate the Kainji Power Station. The funding of the contract is from the credit facility received by the Federal Government from the World Bank to rehabilitate the Kainji power station under the Niger Basin Water Resources Development and Sustainable Ecosystems Management Programme. Speaking at the signing ceremony at PHCN Head office in Abuja, the Managing Director/CEO of PHCN, Engineer Hussain Labo said the rehabilitation will cover three units of the station.

The units are IG-5 which has 120mw installed capacity; IG-6 with 120mw capacity; and IG-12 with 100mw capacity.

"On completion of the contract we will have additional 340mw. Presently, the installed capability of the plant is 380mw. This means that when the contract is completed, the full capacity of Kainji hydro station will be restored," he said.

He said that because of the fragile network, they require units that can regulate frequency, adding that two of them are part of the rehabilitation.

Speaking, the General Manager, Project Monitoring Unit (PMU) PHCN, Engineer Monsuro Afolabi Ganiyu said that the completion time of the contract is between 40 to 42 months, adding that the first units should come out within 27 months.

He said that the contractors were chosen out of the seven that expressed interest in the second bid under the supervision of the World Bank after failing in the first attempt.

He explained that Nigeria is one of the beneficiaries of the World Bank facility among nine countries in the course of Niger, adding that the contract will also be extended to other things in Jebba and Kaniji stations.

Also speaking, the CEO of Kainji Power Station, Enginner Reuben Akinwunmi said that the rehabilitation will apart from increasing their capacity, also control system frequency, adding that two of the old machines that cannot vary the frequency will be replaced with the latest units which will not be collapsing as it used to be.

The chief executives of the companies who signed the contacts, Duan Xiaopin of Hydro China and Wu Jianbin said though the project is challenging, they will demonstrate their capability and technical know how to deliver the contract as scheduled.

Sunday Williams

Daily Trust/28/06/2011