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

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signing of a Memorandum of Understanding (MoU) between the company<br />

and the <strong>Edo</strong> State Government. Under the MoU, the <strong>Edo</strong> State Government<br />

committed to provide the project land and associated easement rights. The<br />

second stage in the acquisition process took place in the second quarter of<br />

2011 when the land was surveyed by the <strong>Edo</strong> State Ministry of Lands, Surveys<br />

and Housing and property beacons (delineating the boundaries of the project<br />

land) were erected on the site.<br />

Subsequent to this exercise, the <strong>Edo</strong> State Government issued a formal public<br />

notice of the Government’s intention to make use of the land, revoking all<br />

existing rights and interests in the land and requesting affected parties to<br />

register any claims. The registration of claims is required so that<br />

compensation payments can be made by the <strong>Edo</strong> State Government (in<br />

conjunction with <strong>Azura</strong> <strong>Power</strong>) in due course. The formal notice of revocation<br />

was published in the official Government Gazette on 16 June 2011 and in two<br />

Nigerian newspapers on 23 June 2011, namely the Vanguard Newspaper (with<br />

a national circulation) and the Observer Newspaper (with a local circulation).<br />

ERM have compiled a Resettlement Action Plan (RAP) inclusive of an<br />

entitlement matrix, which upon review and acceptance by the World Bank<br />

will be implemented in the early stages of 2012. The RAP will outline<br />

compensation measures for all relevant communities including means of<br />

implementation and timeframes.<br />

The land acquisition process will be completed with the transfer of title to the<br />

land to <strong>Azura</strong> <strong>Power</strong> by the issuance of a Certificate of Occupancy. This<br />

certificate will be issued upon submission of the EIA Report and completion<br />

of the RAP.<br />

3.1.4 Project Components<br />

The proposed Project will comprise the following:<br />

• <strong>Power</strong> generating facilities comprising a OCGT system; and<br />

• An aboveground (with one pylon) 330 kV transmission line from the<br />

power plant to the Benin North substation adjacent to the Project site.<br />

• An underground gas pipeline spur (of circa 1 km in length) connecting the<br />

gas receiving station on the Project Site to the ELPS.<br />

3.1.5 Comparison between OCGT and CCGT<br />

A comparison of OCGT and CCGT technology was undertaken to determine<br />

the preferred technology for the power plant. The criteria considered were:<br />

• operating efficiency and therefore the heat rate of the generating units;<br />

• capital costs of the units;<br />

• resilience to grid instabilities;<br />

• maintenance costs and the ease of maintaining them in Nigeria; and<br />

AZURA EDO IPP<br />

3-2<br />

DRAFT EIA REPORT

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