The Ondo State government in partnership with Kingline Development Company, a South Korean firm, has sealed a construction contract with POSCO E&C of South Korea for the Phase I of the states proposed 1,050 megawatts (mw) independent power plants.
Kingline Development Company, is being represented by its Nigerian subsidiary, Kingline Development Nigeria Limited, for the development of the power plant.
Akinnola Fola, Head, Kingline Development Nigeria, stated that the first phase of the project involved the construction of a gas-fired plant to generate 550mw that would be fed to the national grid, adding that the second phase was expected to add another 500mw.
According to him, POSCO will see to the design, engineering, procurement and construction (EPC) of the 550mw open cycle gas turbine power plant, which is slated to commence in the first quarter of 2016 and would take about 26 months from the date of the issuance of the notice to proceed.
The firm noted that a special purpose vehicle called Kingline Ondo IPP Limited had been registered to implement the project, and that the EPC contract between POSCO E&C and Kingline Ondo IPP Limited was considered a milestone.
Fola said that funding had been secured for the project, stressing that the EPC contract was signed recently at POSCO E&Cs head office in Inchon, Seoul, South Korea.

Johnson Alabi
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