The Federal Government, via the minister of finance, has backed the 540 megawatts Qua Iboe Power Plant (QIPP) proposed by the Kano State Government for the re-industrialisation plan of the state.
Zainab Ahmed, minister of finance, gave the assurance on Tuesday when she hosted Abdullahi Ganduje, governor of the state, and his team in Abuja.
In a statement by Paul Ella Abechi, the minister’s special adviser on media and communications, Ahmed said the project will help boost the federal government’s plan for the power sector.
She stated that the project will also improve the industrialisation plan, growth, employment generation for the state.
“Let me assure you that it is not an issue of if this project will take place but when, because we have a very huge power gap and it is more in the northern part than in the south. And when we see an opportunity like this, we have the responsibility to ensure it comes into fruition,” she said.
“We are looking at this as a pilot project as this will help mitigate Federal Government’s plan. The ability to provide a counter guarantee will help a long way to reduce the burden on the Federal Government.
“I want to make a commitment that the ministry of finance will put up our best efforts to make it a success. I hope at the end of the day it will be on record that during my tenure that I contributed to the industrialisation of Kano.”
Ganduje said the state government will provide protection against the financial risk of the power project and also set up the Kano State Bulk Electricity Trading Company (KBET) to buy all the power generated by QIPP from NBET in the form of a back-to-back Power Purchase Agreement (PPA).
“We wish to express the strong interest of Kano State Government in purchasing the electricity generated by QIPP and providing protection to your Ministry against financial risk,” the governor said.
“The Kano State Government is committed to industrializing Kano as a critical component of its development plans. The shortage of electricity has been the principal factor hindering progress in this area.”