1. ABA CLEAN ENERGY CARBON PROJECT Bruce Johnston
FIRST IPP IN NIGERIA
ABA CLEAN ENERGY CARBON PROJECT
Bruce Johnston

2. Aba

3. Genesis of Aba IPP
December 2000 – Geometric Power Limited (GPL) (sponsor and developer of Aba IPP Project) launches the Abuja 22MW Emergency Power Plant
March 2004 – President Obasanjo approves GPL’s Aba IPP as first privately financed project
May 2004 – Minister of Power and Steel, MD/CEO of NEPA and GPL sign an MOU to build the Aba IPP according to the President’s directive
April 2005 – Minister of Power and Steel, MD/CEO of NEPA and APL sign an agreement for the lease of NEPA assets in Aba by APL for 15 years
August 2005 – President allocates supply of gas for the Aba IPP in the National Gas Master Plan

4. Project Background
Current situation – Industries and other consumers presently depend on expensive diesel generation for a substantial part of their production because of inadequacy of the power supply from the national grid
Aba IPP Project – Will supply reliable power to industries, commercial businesses and residential homes in Aba through construction and operation of 140 MW gas fired power plant
Downstream – Construction of own industry-centred distribution lines: several industries poised to expand production capacity if reliable low-cost power supply is assured
Other Customers – Commercial and residential consumers to receive power through distribution lines in “ring-fenced” network leased from PHCN

5. Project Description Structure
Island model disconnected from the national grid and serving industrial and residential customers
Power Station
Installed capacity of approximately 140 MW comprising 3 gas fired open cycle turbines with opportunity for expansion
EPC Contractor to construct, install and commission power plant on turnkey basis
Subsequent procurement of O&M Contract
Distribution Lines
33 KV distribution lines to be constructed from power station to supply reliable power to GPAL Customers through seven distribution substations

6. Project Description (Cont.)
Substations
33 KV Power Station substation with eight outgoing 33 KV Feeders to be constructed for evacuation of power generated at the Power Station
New Distribution Substations
Four distribution substations to be constructed within the city of Aba and equipped each with 2x15 MVA 33/11 KV transformers to supply power to GPAL customers
Osisioma
Ogbor Hill
Factory Road
Port Harcourt Road

7. Project Description (Cont.)
Leased Distribution Substations
Three distribution substations (each equipped with 2x15 MVA 33/11 KV transformers) leased from NEPA to supply power to residential and commercial customers through APL
NEPA Aba Control Substation
NEPA Power Station Substation
NEPA Umuode Substation

8. The Clean Energy Project
Nigeria's first Clean Energy Carbon Project to benefit from the Clean Development Mechanism ("CDM") established under the Kyoto Protocol.
Project has qualified for $9 million carbon grant from the Community Development Carbon Fund (CDCF) (set up by the World Bank).

9. Carbon Finance
General term applied to financing under which a Fund/entity seeks to purchase greenhouse gas emission reductions ("carbon" for short) to offset emissions in the OECD.
Under Carbon Finance arrangements (or ERPA) a clean development project in a developing country can "sell" carbon credits, obtained by replacing more polluting projects, to buyers in industrialised countries seeking to meet their Kyoto obligations to reduce emissions in those countries.

10. Community Development Carbon Fund
A public-private partnership of governments and 16 companies and organisations managed by the World Bank.
Designed to provide communities in developing countries, and in particular least developed countries, with an opportunity to benefit from new investments in renewable energy and clean technologies that aim to reduce greenhouse emissions and mitigate effects of climate change, while improving the welfare of the communities involved.
Community development benefits of ABA Project include access to electricity, construction of a school, health centre and a road for the surrounding communities of Aba Plant.

11. ABA IPP Investment Structure
CDCF
Carbon Funding

12. ABA IPP Power Delivery Model
Gas Supplier
Gas Transporter

13. Allocation of Power Plant Capacity
Unregulated Customers
At least 60% to industries directly via new GPAL owned distribution lines and substations
Regulated Customers
Up to 40% to residential and commercial customers via APL leased PHCN distribution lines and substations

14. Power Purchase Agreements
Unregulated Supply
Each industry off-taker will sign PPA with GPAL
Each industry off-taker will provide payment security in the form of revolving bank guarantee
Industry off-takers will pre-pay for one month supply
Tariffs
Regulated Supply
Each customer will sign a Standard Connection Agreement (with APL)
Customers will use pre-pay meters

15. Gas Supply Requirement Plant requires ~43 mmscf/day Supply
Primary fuel is natural gas supplied through a pipeline from Imo River and the gas gathering field in Owaza and Obigbo
GPAL will sign a GSA with Gas Supplier
Transportation
To be transported through a new pipeline constructed by separately procured gas transporter
GPAL will sign a Gas Transportation Agreement with Gas Transporter

16. ABA CLEAN ENERGY CARBON PROJECT Bruce Johnston
FIRST IPP IN NIGERIA
ABA CLEAN ENERGY CARBON PROJECT
Bruce Johnston