the feasibility study report on lagos thermal …the feasibility study report on lagos thermal power...

The Feasibility Study Report

On

Lagos Thermal Power Plant Expansion Project

in Federal Republic of Nigeria

March 2016

Ministry of Economy, Trade and Industry

Japan

Marubeni Corporation

Contents

Chapter 1 Purpose of the Survey ······························································ i

Chapter 2 Electricity Supply and Demand ·················································· i

Chapter 3 Selection of the Project Site······················································· ii

Chapter 4 Materialization of the Project Plan ············································· iii

4.1 Power generation method selection ·················································· iii

4.2 Composition of the power plant and specifications ····························· iv

4.3 Capacity of the new power plant ························································ v

4.4 Generated electricity delivery facilities ·············································· vi

4.5 Project implementation schedule ······················································ vi

4.6 Project cost estimation ···································································vii

Chapter 5 Economic and Financial Analysis ············································ viii

5.1 Economic and financial analysis ····················································· viii

5.2 Fund raising and repayment plan ···················································· viii

Chapter 6 Environmental and Social Considerations ·································· ix

6.1 Environmental Impact Assessment (EIA) according to laws and

regulations in Nigeria ···································································· ix

6.2 Underlying principles of environmental considerations in the JBIC

Guidelines ···················································································· x

Chapter 7 Economic and Social Impact of Project Implementation ············ xiii

Attachment Drawings ·······················································································xv

i

Chapter 1 Purpose of the Survey

The Federal Republic of Nigeria (hereinafter referred to as “Nigeria”) has the largest population in Africa,

with approximately 182 million people. According to the latest economic statistics, Nigeria overtook South

Africa to become Africa’s largest economy. The Nigerian economy has been steadily growing, with the

largest oil production and natural gas reserves in Africa, as well as strong growth in non-oil sectors. As for

the power sector, however, because power supply facilities have not been properly maintained, upgraded or

newly constructed in the past, the supply capacity is overwhelmingly insufficient for the potential demand,

causing frequent planned outages and accidental outages in the entire power system.

In such circumstances, the Government of Nigeria has promoted the National Integrated Power Project

(NIPP) and privatization of the power sector. However, in order to respond to the present potential

electricity demand and the electricity demand that is likely to increase sharply in the future, an expansion of

electricity facilities and streamlining of the existing gas turbine and thermal power generating systems are

urgently needed. As a part of the expansion of electricity facilities, efficiency must be improved through

construction of a gas-fired thermal power plant and a large, high-efficiency gas combined cycle power

plant.

This Project will carry out a basic survey on the present state of the existing power supply facilities and

plans to expand the electricity facilities. It will also carry out a feasibility survey with an eye to formulating

a plan to introduce a high-efficiency gas combined cycle power plant that utilizes Japan’s technology to the

maximum extent and to receive a construction order for such a plant.

Chapter 2 Electricity Supply and Demand

In Nigeria, the potential electricity demand considerably outstrips the supply capacity, and planned

outages are conducted on a routine basis. Therefore, factories, commercial facilities and general households

use non-utility generation facilities to prepare for outages and make up for daily power shortages. The

maximum power output grew at an annual average of 4.6% in 2009-2016, but the output was a mere

5,075MW in 2016, which is about one third of the peak demand of 14,630MW. The power consumption per

person in Nigeria is extremely low compared to countries of the same level of GDP per capita: for example,

it is roughly one tenth of that in Vietnam. It is even lower than that of countries with lower levels of GDP

per capita, such as Ghana and Mozambique.

The Energy Commission of Nigeria (ECN) forecasts that the electricity demand (on the basis of

generated electric energy) will continue growing at an annual rate of 5.7% until 2050. Therefore, electricity

supply facilities must be strengthened urgently to respond to the present shortage and future growth in

demand.

The country has a total of 25 power plants, consisting of three hydropower and 22 thermal power plants.

The rated capacity is a total of 11,675MW. However, due to trouble, maintenance of the facilities and other

ii

reasons, the available capacity is 7,140MW, or just 61% of the rated capacity. Moreover, the power output

is restricted by restrictions on the transmission capacity and gas supply, and therefore the actual capacity is

only about 3,000-4,000MW.

Chapter 3 Selection of the Project Site

The project site must satisfy necessary requirements and will be selected from four power plants, that is:

(i) Egbin Thermal Power Plant, a conventional dual fired system (gas and heavy oil) to which Marubeni

Corporation delivered power plants made by Mitsubishi Hitachi Power Systems, Ltd. (MHPS, former

Hitachi, Ltd.); (ii) Calabar Power Plant, a simple cycle gas turbine plant; (iii) Sapele Power Plant, a simple

cycle gas turbine power plant; and (iv) Ihovbor Power Plant, a simple cycle gas turbine power plant.

The requirements that the project site must meet have been set forth as follows with the assumption of

constructing a gas turbine combined cycle power plant that has a rated output of 1,300-1,900MW.

(i) A construction site with an area of 20ha or more is available.

(ii) Water is available for use as boiler supply water.

(iii) The natural gas supply pressure is sufficient, 4.5MPa or higher, and 300 MMCFD or more can be

secured.

(iv) The site is connected to a 330kV transmission line, and is able to connect to additional lines.

(v) The site is near an area where electricity is in demand.

(vi) The site is far from any densely-populated area.

(vii) The site is free from any restrictions on the transport of heavy and large cargo.

The seven items above have been evaluated for the four candidate sites as shown in Table 3.1, and it has

been concluded that it will be the most appropriate measure to construct a gas turbine combined cycle

power plant on a site adjacent to the Egbin Thermal Power Plant.

Table 3.1 Evaluations of Candidate Project Sites

Item Egbin Calabar Sapele Ihovbor

1 A construction site with

an area of 20ha or more

is available.

A site with an area

of 20ha or more can

be secured.

◎

Impossible on the

present site. Site

expansion is needed.

△

Impossible on the

present site. Site


△

Impossible on the

present site. Site


△

2 Water is available for

use as boiler supply

water.

◎ × ◎ △

3 The natural gas supply

pressure is sufficient,

4.5MPa or higher, and

300 MMCFD or more

can be secured.

◎

△ △

(Addition al

pipeline must be

laid down.)

△

(No gas supply)

4 The site is connected to

a 330kV transmission

line, and is able to

connect to additional

lines.

6 330kV lines

◎

4 330kV lines

○

6330kV lines

○

(The facilities are

aged)

4 330kV lines

○

iii

Item Egbin Calabar Sapele Ihovbor

5 The site is near an area

where electricity is in

demand.

Lagos

◎

Calabar

○

Bennin

○

Bennin

○

6 The site is far from any

densely-populated area.

◎ ◎ ○ ◎

7 The site is free from

any restrictions on the

transport of heavy and

large cargo.

About 350t of cargo

was transported for

construction of the

present plant.

◎

About 230t of cargo

was transported for

construction of the

present plant.

○

About 230t of cargo

was transported for

construction of the

present plant.

○

About 230t of cargo

was transported for

construction of the

present plant.

○

Overall evaluation ◎ △ △ △

Chapter 4 Materialization of the Project Plan

4.1 Power generation method selection

Four power generation methods may be applicable to the plant to be built under this Project: that is,

(1) a simple cycle gas turbine plant with a high efficiency large gas turbine; (2) a high efficiency gas

combined cycle power plant with a large gas turbine; (3) a supercritical pressure conventional steam

turbine power plant; and (4) a large gas engine power plant. The following table summarizes these

power generation methods. The following table summarizes the four methods.

Table 4.1-1 Comparison of Power Generation Methods

No. Power generation method Output breakdown Net thermal

efficiency

Type-1 Simple cycle gas turbine power

generation with an advanced large

gas turbine

MHPS M701F4 x 6 units

[Net power: 285 MW x 6 = 1,710MW]

39%*

Type-2 High efficiency gas combined cycle

power plant with an advanced large

gas turbine

MHPS M701F4 2 on 1×2 or 1 on 1×4

[Net power: 877 MW x 2 = 1,754 MW]

58%*

Type-3 Super critical pressure conventional

steam turbine power plant

300 MW BTG x 6 units

[Net power: 300 MW**×6= 1,800 MW]

41%*

Type-4 Large gas engine power plant 18MW Gas Engine x 100 units

[Net power: 18MW x 100 = 1,800MW]

47%

Notes *: New & Clean Condition

**: Nigeria’s power system is small in size and the maximum capacity of each power generator is restricted to

300MW.

Figure 4.1-1 shows the accumulated power generation costs of the four methods. For the first

40,000 hours after the commencement of operation, the accumulated cost of a simple cycle gas

turbine power plant (Type-1) is the lowest, but the accumulated costs of a gas turbine combined

cycle power plant (Type-2) is the lowest after about 50,000 hours. Therefore, this Project will adopt

gas turbine combined cycle power generation (Type-2).

iv

Figure 4.1-1 Accumulated Power Generation Cost of the Power Generation Methods

4.2 Composition of the power plant and specifications

Three types of gas turbine combined cycle power generation with advanced large gas turbine may

be applicable to the plant to be built under this Project: that is, (1) one-on-one single-shaft; (2)

one-on-one multi-shaft; and (3) two-on-one multi-shaft. Table 4.2-1 shows a comparison of

components of the power plant in these types.

Table 4.2-1 Comparison of Combined Cycle Components

Item One on One*×4 Two on One**×2

1. Shaft composition Single-shaft Multi-shaft Multi-shaft

2. Without a bypass

stack/ Breakdown of 1

HRSG

GTG single operation

unavailable

Output 75% ○


unavailable

Output 75% ○


unavailable

Output 75% ○

3. With a bypass stack

/ Breakdown of 1

HRSG


available

Output approx. 91% ◎


available



available


4. Without a bypass

stack/ Breakdown of 1

STG


unavailable

Output 75% ○


unavailable

Output 75% ○


unavailable

Output 50% △

5. With a bypass stack

/ Breakdown of 1 STG


available


available


available

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000

累積コスト

U

SD/ｋ

W

運転時間 Hour

Simple Cycle GT Combined Cycle GT Gas Thermal BTG Gas Engine

Acc

um

ula

ted

co

st: U

SD/k

W

Operating time: hours

v

Item One on One*×4 Two on One**×2

Output approx. 91% ◎ Output approx. 91% ◎ Output approx. 83% ◎

6. No. of generators 4 generators ◎ 8 generators △ 6 generators ○

7. No. of lines for

330kV

4 lines ◎ 8 lines △ 6 lines ○

8 Breakdown of 1

GTG

Output 75% ○ Output 75% ○ Output 75% ○

9. Construction cost 100% ◎ 110% △ 103% ○

10. Simplicity of O&M ◎ ○ ◎

11. Capacity of a

single generator is

300MW or less

Approx. 450MW

×

◎ ◎

Overall evaluation × △ ○

Notes *: One Gas Turbine on One Steam Turbine

**: Two Gas Turbines on One Steam Turbine

Based on the results of the comparison made above, this Project will consider two types of

compositions as candidates to be built on idle land east of the Egbin Thermal Power Plant: that is,

four blocks of a one-on-one multi-shaft gas turbine combined cycle power plant (hereinafter referred

to as “CASE 1”) and two blocks of a two-on-one multi-shaft gas turbine combined cycle power plant

(hereinafter referred to as “CASE 2”). The new power generating facilities will be constructed in the

manner where they will not rely on the existing power plant, but will use some components or

extended facilities of the existing plant, such as the existing gas and water supply facilities, auxiliary

steam system, fire-extinguishing installation, and 330kV switch gear.

4.3 Capacity of the new power plant

The following table summarizes the capacity of Case 1, a one-on-one multi-shaft MHPS gas

turbine (M701F4), and that of Case 2, a two-on-one multi-shaft combined cycle power plant, under

the site design conditions.

Table 4.3-1 Comparison of the Capacity of the Two Cases (Site Conditions)

Capacity item Case 1: one-on-one multi-shaft Case 2: two-on-one multi-shaft

Total gross power output 1,743,200 kW 1,754,000 kW

Total gross block power output* 440,800 kW 886,100 kW

Net block power output** 435,800 kW 877,000 kW

Net thermal efficiency 58.17 % 58.53 %

Heat rate 6,189 kJ/kWh 6,151 kJ/kWh

Notes *: Power output at generator end

**: Total power output at generator end – auxiliary power

vi

4.4 Generated electricity delivery facilities

Table 4.4-1 shows the transmission lines that the Egbin Thermal Power Plant uses to deliver

generated electricity. If a combined cycle power plant is constructed, Case 2 produces an additional

output of 1,754MW under the site conditions, compared to Case 1, which produces less output. In

order to confirm if the transmission lines are subject to overload, power flow analyses have been

performed in three cases: with no additional transmission lines, with two additional 330kV

transmission lines, and with four additional 330kV transmission lines. As shown in Table 4.4-2, the

first case (with no additional transmission lines) causes no overload, but the maximum load reaches

93%. This suggests that if any trouble occurs in a line, the remaining lines will be overloaded,

therefore an additional two or four lines should ideally be laid down. To secure higher supply

credibility, the construction of an additional four lines should be recommended.

Table 4.4-1 Egbin Thermal Power Plant Existing Power Lines

No. Transmission route Voltage No. of lines

1 Egbin Power Plant – Aja Substation 330kV 2

2 Egbin Power Plant – Benin 330kV 1

3 Egbin Power Plant – Ikeja West Substation 330kV 1

4 Egbin Power Plant – Oke Aro Substation – Ikeja West Substation 330kV 2

5 Egbin Power Plant – Ikorodu Substation 132kV 2

Table 4.4-2 Current Analysis Results

Case Generation capacity (MW) No. of 330kV

transmission lines

Location to place

additional lines

Maximum load

factor of

transmission lines

1 3,074 (1,320+1,754) 6 (existing lines) No additional lines 93%

2 3,074 (1,320+1,754) 8 (additional 2 lines) Egbin – Oke Aro 67%

3 3,074 (1,320+1,754) 8 (additional 2 lines) Egbin – Ogijo 68%

4 3,074 (1,320+1,754) 10 (additional 4 lines) Egbin – Ogijo 55%

4.5 Project implementation schedule

Tables 4.5-1 and 4.5-2 show the entire project schedule of Cases 1 and 2, respectively. In Case 1,

the first simple cycle gas turbine is scheduled to start operation in December 2019, and the

construction of the entire power plant is scheduled to be completed in June 2022. In Case 2, on the

other hand, the first simple cycle gas turbine is scheduled to start operation in December 2019, and

the construction of the entire power plant is scheduled to be completed in June 2021.

vii

Table 4.5-1 Entire Project Schedule (Case 1)

Table 4.5-2 Entire Project Schedule (Case 2)

4.6 Project cost estimation

The project cost can be divided roughly into (1) the construction cost of power generating facilities

and (2) the cost of preparation for operation. Table 4.6-1 shows the estimated project costs.

Table 4.6-1 Results of Project Cost Estimation

Item Case-1：1 on 1 x 4 Blocks Case-2：2 on 1 x 2 Blocks

(1) Construction cost of power generating facilities (EPC cost)

Cost of power generating and auxiliary

facilities

JPY 126,510 million JPY 120,500 million

Cost of transport, installation and test operation JPY 46,000 million JPY 43,750 million

Civil engineering and construction costs JPY 57,500 million JPY 54,800 million

Total (1) JPY 230,010 million JPY 219,050 million

(eq. USD 2,000.09 million)

[USD 1,046 / kW]


[USD 993 / kW]

(2) Engineering and project management costs

Engineering and project management costs JPY 2,500 million JPY 2,500 million

Spare parts JPY 1,500 million JPY 1,500 million

Total JPY 4,000 million JPY 4,000 million

Grand total JPY 234,010 million


JPY 223,050 million


Note: USD 1.00 = JPY 115

2015 2016 2017 2018 2019 2020 2021 2022 20231 Feasibility Study

2EIA Study and ReportEIA Approved

3 EPC Proposal and Evaluation

4 Contract Negotiation

5Contract Signning and WorkPeriod 　　　∆

6 No.1 Block-SC COD 　　　 ∆

7 No.1 Block-CC COD 　　　 ∆


9 No.2 Block-CC COD 　 ∆

10 No.3 Block-SC COD 　 ∆




2015 2016 2017 2018 2019 2020 2021 2022 20231 Feasibility Study

2EIA Study and ReportEIA Report Approved

3 EPC Proposal and Evalaution

4 Contract Negotiation

5Contract Signning & WorkPeriod 　　　∆





viii

Chapter 5 Economic and Financial Analysis

5.1 Economic and financial analysis

Economic and financial analysis has been performed according to the following conditions. As

shown in Table 5.1-1, the FIRR of both Cases 1 and 2 have been found to be above the opportunity

cost of the Project, which is 10%. The B/C ratio is also greater than 1. Therefore, the Project has

been found to be relevant in terms of financial assessment indicators, and satisfies the financial and

investment standards.

[Prerequisites of the economic and financial analysis]

(1) Annual operating hours of the power plant: 8,000 hours

(2) Annual load factor of the power plant: 80%

(3) Fixed operational and maintenance costs: 0.5%/year of the construction cost

(4) Variable operational and maintenance costs: USD2.00/MWh (equivalent to JPY 240/MWh)

(5) Fuel costs: USD 3.30/MMBtu (equivalent to JPY 375/GJ)

(6) Electricity sales price: USD 7.22 cents/kWh (equivalent to JPY 8.66/kWh)

Table 5.1-1 Economic and Financial Analysis Evaluation Indicators

5.2 Fund raising and repayment plan

(1) Consideration of fund raising and candidate financial resources

The funds necessary for facility investment and operating costs of the Project will be financed by

self funding (15%) and overseas borrowing (85%). Overseas borrowing will be made from

international policy-based financial institutions and private financial institutions in the form of

"project loans", which are granted to implement specific development projects to build roads, railroads,

power plants and other types of infrastructure in developing countries. As for foreign loans, 85% will

be made from policy-based financial institutions and the remaining 15% from private financial

institutions.

(2) Borrowing prerequisites

According to the nature of development assistance funds, loans will be granted under long-term and

lenient conditions. Interest during construction will be paid by the organization implementing the

project.

Interest rate: JPY fixed rate of 3.72%

According to export financing standard loan conditions by JBIC, the fixed rate of 3.72% will be

Indicator

Case

FIRR B/C ratio

(discount rate: 10%)

Case-1 17.2% 1.63

Case-2 19.7% 1.72

ix

applied. (This rate is the sum of the fixed rate at the time of the loan approval of 1.03% (as of January

2016); a premium prior to agreement of the export contract of 0.20%; and a risk premium of 2.49%.)

Borrowing period: 4 years of a moratorium, and a subsequent 12 years of principal equal repayment

(3) Borrowing amount calculation

The amount of borrowing will reach a peak with the following timing, and principal equal repayment

will start in 2021.

Case 1: JPY138,390 million in 2020, principal equal repayment: JPY11,533 million

Case 2: JPY128,198 million in 2020, principal equal repayment: JPY10,683 million

(4) Repayment plan

Revenues from electricity sales under the Project will be allocated for repayment of the principal and

interest. According to the calculation, loans will be repaid completely in 2032.

Chapter 6 Environmental and Social Considerations

6.1 Environmental Impact Assessment (EIA) according to laws and regulations in Nigeria

(1) Summary

Nigeria has the Environment Impact Assessment Act (hereinafter referred to as the "EIA Act"), which

requires any development project possibly having any negative impact on the environment to perform

an environmental assessment. At the same time, the following guidelines are in force in relation to an

environmental impact assessment.

・ EIA Procedural Guideline (1992)

This regulates the procedures from the project planning to implementation and the procedures for

obtaining EIA approvals.

・ EIA Guidelines for the Power Sector

The EIA Guidelines were formulated in 2013 especially for the power sector. These will be

applicable to electricity facilities (*) already installed and likely to be installed in future.

* “Electricity facilities” include hydropower, thermal power (boiler (steam turbine), reciprocating

engines, combustion turbine, combined cycle and cogeneration), wind power, nuclear power,

transmission line, rural electrification, photovoltaic power, biomass power, tidal power and

geothermal power.

(2) Project Category

The EIA Act stipulates that any development project will be classified into one of the following three

categories in consideration of the nature and degree of its impact on the environment, and other factors.

・ Category I: Projects in this category will require approval based on a full-scale EIA survey

(corresponding to Category A of the JBIC Guidelines).

・ Category II: Projects in this category will require approval based on a survey on the IEE level.

・ Category III: Projects in this category will be approved without an EIA or IEE survey.

x

As for the power sector, the supplement to the EIA Act requires the following projects to perform an

EIA. This Project falls under the category "combined cycle power generation" and must perform an

EIA.

・ Thermal power generation: 10MW or larger

・ Hydropower generation: Dams with a height of 15m or higher and the total area of auxiliary

facilities with area 40ha or larger, or the area of a water reservoir of 400ha or larger

・ Combined cycle power generation

・ Nuclear power generation

6.2 Underlying principles of environmental considerations in the JBIC Guidelines

(1) Underlying principles

The JBIC Guidelines stipulate that the environmental impact which may be caused by a project must

be assessed and examined from the earliest planning stage possible, and that alternative proposals or

minimization measures to prevent or reduce adverse impact must be examined and incorporated into the

project plan. The guidelines also state that the findings of the examination of environmental and social

considerations must include alternative proposals or mitigation measures and be recorded as separate

documents or as a part of other documents, and that Environmental Impact Assessment (EIA) reports

must be produced for projects such as this Project, which fall under Category A.

(2) Examination of measures

The JBIC Guidelines stipulate that multiple alternative proposals must be examined to prevent or

minimize adverse impact and to choose a better project option in terms of environmental and social

considerations, and that, in the examination of measures, priority is to be given to the prevention of

environmental impact. When this is not possible, minimization and reduction of impact must be

considered next. The guidelines also stipulate that compensation measures must be examined only when

impact cannot be prevented by any of the aforementioned measures. In particular, for projects in

Category A, the guidelines stipulate that appropriate follow-up plans and systems, such as monitoring

plans and environmental management plans, must be prepared; and the costs of implementing such

plans and systems as well as financial methods to fund such costs must be determined.

(3) Environmental considerations in the JBIC Guidelines for construction of a thermal

power plant

Table 6.2-1 lists categories and items on the environmental checklist of the JBIC Guidelines, together

with the results of the preliminary environmental impact forecast and assessment.

Within the anti-pollution measures, the Project is expected to have an especially large impact on air

quality, so that continuous environmental monitoring, introduction of facilities satisfying the emission

gas standards and appropriate maintenance measures are needed. For water quality, waste, noise and

vibration, and odor, continuous monitoring, maintenance and inspections of equipment as well as other

various other measures must also be conducted. As for soil contamination and subsidence, on the other

hand, the actual situation at the site has not been clarified yet, though such information is necessary to

xi

forecast the impact of the Project. Therefore, it is necessary to understand the actual state of affairs

through a field survey in future and to build a system to implement and manage appropriate measures.

As for the natural environment, the construction of an additional power plant is expected to have an

impact on the ecosystem and biota in and around the project site. In particular, adverse effects would

increase without any appropriate measures against the pollutant sources cited above. To see the impact

on hydrology, as well as topography and geology, the present state of affairs must be clarified through a

field survey in future.

As for the social environment and other factors, traffic from construction vehicles and construction

work will temporarily have adverse effects including noise and vibration that affects communities near

the project site, as well as the regional economy and infrastructure. However, to again assess these

impacts in detail, the present state of affairs must be clarified through the field survey that covers these

communities. Based on the survey results, countermeasures must be taken to, for example, remove

impediments to economic activities, ease local traffic, and restrict construction time.

Table 6.2-1 Preliminary Environmental Impact Forecast and Assessment Results

Category Check item

Forecast and

assessment

Reasons for forecast and assessment Countermeasures and

policies

Lar

ge

Sm

all

No

ne

Un

kno

wn

An

ti-p

oll

uti

on

mea

sure

s

Air quality ●

An increase in gas emissions

including NOx will affect the air

quality.

Continuous environmental

monitoring, introduction of

facilities satisfying emission

gas standards and appropriate

maintenance measures

Water quality ● An increase in effluents will affect the

water quality of the lagoon.



facilities satisfying effluent

standards and appropriate

maintenance measures

Waste ● The construction work will generate

waste.

Waste disposal measures

during construction work

Soil

contamination ●

The present state of soil

contamination, present measures

against soil contamination, etc. are

unknown.

Understanding of the present

state through a field survey,

and building of a system to

manage pollutant resources

Noise and

vibration ●

Construction work and operation of

the power plant will cause noise in

and around the project site.



facilities to reduce noise and

restrictions on work time

Subsidence ● The present ground condition is

unknown.


state through a field survey

Odor ●

The power plant will emit gases, and

use ammonia and chlorine, which will

generate odor.


monitoring and prevention of

leakage through regular

xii

Category Check item

Forecast and

assessment


policies

Lar

ge

Sm

all

No

ne

Un

kno

wn

facility inspections

Sediment ● No activity will be taken to affect

sediment. None

Nat

ura

l en

vir

on

men

t

Protected

areas ●

No protected area exists near the

project site. None

Ecosystem

and biota ●

The pollutant resources cited above

will have an impact on the ecosystem

and biota in and around the Project

site


monitoring and various

countermeasures against

contamination cited above

Hydrology ●

The impact of an increase in the

amount of water taken and emitted

between the lagoon and the power

plant is unknown.



and continuous

environmental monitoring

Topography

and geology ●

The present topographical and

geological conditions are unknown.



Management

of abandoned

sites

●

Neither removal of any existing

facilities nor management of any

abandoned site is expected in this

Project.

None

So

cial

en

vir

on

men

t

Resettlement ●

The site is idle land owned by the

Egbin Thermal Power Plant, and no

resettlement of residents is needed.

None

Living and

livelihood ●

Traffic from construction vehicles

will temporarily have adverse effect

on the regional economy and

infrastructure.


state including the situations

of communities near the

project site through a field

survey, and consideration of

measures to alleviate the

impact based on the actual

state

Heritage ● No cultural heritage property is

located near the project site. None

Landscape ●

Buildings, stacks and other structures

of the power plant may spoil the

landscape.

Measures to alleviate the

impact on landscape, such as

forestation in and around the

project site

Ethnic

minorities

and

indigenous

peoples

●

Neither ethnic minorities nor

indigenous people reside in or around

the project site.

None

Working

conditions ●

Compliance with any manuals and

NERC rules on working conditions

Interviews with workers of

the existing power plants

xiii

Category Check item

Forecast and

assessment


policies

Lar

ge

Sm

all

No

ne

Un

kno

wn

and

occupational

safety

and occupational safety is unknown. about working conditions,

and confirmation of

compliance with manuals and

NERC rules

Healthcare,

safety and

security of

local

communities

● The present state of communities near

the project site is unknown.

Confirmation of the present

state and the possible impact

on communities near the


survey

Oth

er

Impact during

construction

work

●

Traffic from construction vehicles

will temporarily have adverse effect

on the regional economy and

infrastructure. Noise and vibration

from construction work will have an

adverse effect.

Confirmation of the present

state including

communication near the


survey, removal of

impediments to economic

activities, consideration of

local traffic, and restrictions

on work time

Measures to

prevent

accidents

●

Whether any training is conducted or

not for workers to prevent accidents is

unknown.


state through a field survey,

and training of workers

Monitoring ● Whether monitoring on social aspects

is conducted or not is unknown.

Expansion of monitoring

items including social aspects

and continuous

environmental monitoring

that is in progress

Chapter 7 Economic and Social Impact of Project Implementation

In Nigeria, the potential electricity demand considerably outstrips the supply capacity, and planned

outages are conducted on a routine basis. Factories, commercial facilities and general households use

non-utility generation facilities to prepare for outages and make up for daily power shortages. Non-utility

power generation costs twice or nearly three times more than grid power, resulting in increased costs

incurred to manufacturers, adverse effects to the invitation of various industries and an increased financial

burden on citizens. Moreover, economically vulnerable groups cannot afford non-utility power generation

and therefore have to accept an uncomfortable situation of frequent outages.

Nigeria has a total of 22 thermal power plants, but 15 plants are inefficient simple cycle gas turbine power

plants. These need to be replaced by high efficiency combined cycle power plants for more efficient energy

use with less global warming gas emissions.

Under these circumstances, the Project to strengthen electricity supply capacity and introduce a high

xiv

efficiency power generating system will be extremely important for Nigeria’s power sector, and have a

positive impact on the country's economy and society. The facility to be constructed under the Project will

be fueled by natural gas, but appropriate measures can avoid and alleviate considerable adverse effects on

the environment. At the same time, the construction work will require many workers and therefore generate

a positive impact on society in the form of effects such as job creation.

Attachment Drawings

#1-1 PLOT PLAN DRAWING (Case-1 M701F4 1 on 1 x 4)

#1-2 TYPICAL PLOT PLAN (Case-1 M701F4 1 on 1 x 4)

#2-1 PLOT PLAN DRAWING (Case-1 M701F4 2 on 1 x 2)

#2-2 TYPICAL PLOT PLAN (Casr-2 M701F4 2 on 1 x 2)

xv

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