The Ondo State Government has signed an Engineering, Procurement and Construction (EPC) contract with Posco E & C of South Korea to construct 550megawatts (mw) in the first phase of the Independent Power Project (IPP).
The state government said it partnered with Kingline Development Company of South Korea through its Nigerian subsidiary, Kingline Development Nigeria Ltd (KDN) to develop the plant.
In a statement on Sunday, November 23, the officials said construction work for the phase I begins in the first quarter of 2016 and on completion of the open cycle gas turbine plant, the 550mw to be generated will be sold into the National Grid.
It said actual construction would take about 26 months from the date of issuing the Notice To Proceed (NTP).
The second phase is expected to add another 500mw bringing the project to 1050mw plant.
Head of KDN, Akinnola Fola who spoke in Abuja at the weekend said a Special Purpose Vehicle, Kingline Ondo IPP Ltd has been registered to implement the power generation project and that funding had been secured already.
He said the gas supply process will be concluded this month while other procedures including the completion of the Power Purchase Agree (PPA) with the Nigeria Bulk Electricity Trading Company (NBET) shortly.