Azura-Edo Independent Power Plant Environmental Impact ... - IFC

In 2005, the Government launched an ambitious capital investment program
under the title of the National Integrated Power Project (NIPP). The NIPP
projects comprise both gas-fired power plants and transmission lines and, when
completed, are intended to add nearly 5,000 MW to the country’s electricity
capacity. The Government has made it clear that it would not be desirable or
possible for such enormous investments to be funded and directed by the
Federal Government, and hence the Nigerian Government has stressed
repeatedly, that the requisite investments in the power sector will only be
achievable if the private sector is incentivised to make these investments.
In this context, the Azura-Edo IPP is regarded as a critical project to provide the
necessary power supply capacity and also a test of the country’s ability to
resuscitate the power sector and provide much-needed employment
opportunities for its large, young and rapidly urbanising citizens.
Other positive benefits of the proposed project include the following:
• At a national level, an increase in grid based power generation capacity. At a
local level, the development of Benin City area and the State to provide
employment opportunities (direct and indirect) from the increased
availability of power within the region).
• In line with the Government’s plans for power sector reform, the Project will
assist to promote stronger relationships and collaboration between the
Federal Government of Nigeria, the Local State Government (relevant Edo
State departments/ ministries) and relevant regulatory bodies. In particular,
the partnership with Edo State (a minority shareholder - up to 5 percent –
and which will provide land and roads) is intended to provide a foundation
for collaboration with local government and other relevant parties in the
future
• The selection of world-class expertise enlisted for the project will bring a
wealth of skills and technology for wider energy sector within Edo State.
• The Project has been nominated for participation in a series of Partial Risk
Guarantees (PRGs) initiated by the World Bank to support the Nigerian
electricity supply industry and has applied for political risk insurance (PRI)
from the Multilateral Investment Guarantee Association (MIGA). These will
encourage external investors and also raise the investment profile of other,
similar, projects in Nigeria.
EIA PROCESS
The EIA for the Azura Edo IPP was undertaken in accordance with the
Environmental Impact Assessment Act (Act No. 86 of 1992) and World Bank
requirements. Accordingly, the EIA process comprised of a number of key steps,
namely:
AZURA EDO IPP
II
DRAFT EIA REPORT