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
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

i
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 A site with an area Impossible on theImpossible on theImpossible on the
an area of 20ha or more of 20ha or more can present site. Sitepresent site. Sitepresent site. Site
is available. be secured. expansion is needed. expansion is needed. expansion is needed.
◎ △ △ △
2 Water is available for ◎ × ◎ △
use as boiler supply
water.
3 The natural gas supply ◎ △ △ △
pressure is sufficient, (Addition al (No gas supply)
4.5MPa or higher, and pipeline must be
300 MMCFD or more laid down.)
can be secured.
4 The site is connected to 6 330kV lines 4 330kV lines 6330kV lines 4 330kV lines
a 330kV transmission ◎ ○ ○ ○
line, and is able to (The facilities are
connect to additional aged)
lines.

ii
 Item Egbin Calabar Sapele Ihovbor
5 The site is near an area Lagos Calabar Bennin Bennin
where electricity is in ◎ ○ ○ ○
demand.
6 The site is far from any ◎ ◎ ○ ◎
densely-populated area.
7 The site is free from About 350t of cargo About 230t of cargo About 230t of cargo About 230t of cargo
any restrictions on the was transported for was transported for was transported for was transported for
transport of heavy and construction of the construction of the construction of the construction of the
large cargo. present plant. present plant. present plant. 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 MHPS M701F4 x 6 units 39%*
generation with an advanced large [Net power: 285 MW x 6 = 1,710MW]
gas turbine
Type-2 High efficiency gas combined cycle MHPS M701F4 2 on 1×2 or 1 on 1×4 58%*
power plant with an advanced large [Net power: 877 MW x 2 = 1,754 MW]
gas turbine
Type-3 Super critical pressure conventional 300 MW BTG x 6 units 41%*
steam turbine power plant [Net power: 300 MW**×6= 1,800 MW]
Type-4 Large gas engine power plant 18MW Gas Engine x 100 units 47%
[Net power: 18MW x 100 = 1,800MW]
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).

iii
 8,000

7,000

6,000
USD/kW
cost:USD/ｋW

5,000

4,000
累積コスト
Accumulated

3,000

2,000

1,000

-
0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000
Operating
運転時間 time:Hour
hours
Simple Cycle GT Combined Cycle GT Gas Thermal BTG Gas Engine

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 GTG single operation GTG single operation GTG single operation
stack/ Breakdown of 1 unavailable unavailable unavailable
HRSG Output 75% ○ Output 75% ○ Output 75% ○
3. With a bypass stack GTG single operation GTG single operation GTG single operation
/ Breakdown of 1 available available available
HRSG Output approx. 91% ◎ Output approx. 91% ◎ Output approx. 91% ◎
4. Without a bypass GTG single operation GTG single operation GTG single operation
stack/ Breakdown of 1 unavailable unavailable unavailable
STG Output 75% ○ Output 75% ○ Output 50% △
5. With a bypass stack GTG single operation GTG single operation GTG single operation
/ Breakdown of 1 STG available available available

iv
 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 4 lines ◎ 8 lines △ 6 lines ○
330kV
8 Breakdown of 1 Output 75% ○ Output 75% ○ Output 75% ○
GTG
9. Construction cost 100% ◎ 110% △ 103% ○
10. Simplicity of O&M ◎ ○ ◎
11. Capacity of a Approx. 450MW ◎ ◎
single generator is ×
300MW or less
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

v
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 Location to place Maximum load
transmission lines additional lines 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.

vi
 Table 4.5-1 Entire Project Schedule (Case 1)
2015 2016 2017 2018 2019 2020 2021 2022 2023
1 Feasibility Study
EIA Study and Report
2
EIA Approved
3 EPC Proposal and Evaluation
4 Contract Negotiation
Contract Signning and Work
5 Period 　　 　∆
6 No.1 Block-SC COD 　　　 ∆
7 No.1 Block-CC COD 　　　 ∆
8 No.2 Block-SC COD 　　　 ∆
9 No.2 Block-CC COD 　 ∆
10 No.3 Block-SC COD 　 ∆
11 No.3 Block-CC COD 　　　 ∆
12 No.4 Block-SC COD 　　　 ∆
13 No.4 Block-CC COD 　 ∆

Table 4.5-2 Entire Project Schedule (Case 2)

2015 2016 2017 2018 2019 2020 2021 2022 2023
1 Feasibility Study
EIA Study and Report
2
EIA Report Approved
3 EPC Proposal and Evalaution
4 Contract Negotiation
Contract Signning & Work
5 Period 　　 　∆
6 No.1 Block-SC COD 　　　 ∆
7 No.1 Block-CC COD 　　　 ∆
8 No.2 Block-SC COD 　　　 ∆
9 No.2 Block-CC COD 　 ∆

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 JPY 126,510 million JPY 120,500 million
facilities
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) (eq. USD 1,904.78 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
(eq. USD 2,034.87 million) (eq. USD 1,939.56 million)
Note: USD 1.00 = JPY 115

vii
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

Indicator FIRR B/C ratio
Case (discount rate: 10%)
Case-1 17.2% 1.63
Case-2 19.7% 1.72

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

viii
 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.

ix
 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

x
 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

Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment
Unknown
Small
Large

policies
None

Continuous environmental
An increase in gas emissions monitoring, introduction of
Air quality ● including NOx will affect the air facilities satisfying emission
quality. gas standards and appropriate
maintenance measures
Continuous environmental
monitoring, introduction of
An increase in effluents will affect the
Water quality ● facilities satisfying effluent
water quality of the lagoon.
standards and appropriate
maintenance measures
Anti-pollution measures

The construction work will generate Waste disposal measures

Waste ●
waste. during construction work
The present state of soil Understanding of the present
Soil contamination, present measures state through a field survey,
●
contamination against soil contamination, etc. are and building of a system to
unknown. manage pollutant resources
Continuous environmental
Construction work and operation of
Noise and monitoring, introduction of
● the power plant will cause noise in
vibration facilities to reduce noise and
and around the project site.
restrictions on work time
The present ground condition is Understanding of the present
Subsidence ●
unknown. state through a field survey
The power plant will emit gases, and Continuous environmental
Odor ● use ammonia and chlorine, which will monitoring and prevention of
generate odor. leakage through regular

xi
 Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment

Unknown
Small
Large
policies

None
facility inspections
No activity will be taken to affect
Sediment ● None
sediment.
Protected No protected area exists near the
● None
areas project site.
The pollutant resources cited above Continuous environmental
Ecosystem will have an impact on the ecosystem monitoring and various
●
and biota and biota in and around the Project countermeasures against
site contamination cited above
Natural environment

The impact of an increase in the Understanding of the present

amount of water taken and emitted state through a field survey
Hydrology ●
between the lagoon and the power and continuous
plant is unknown. environmental monitoring
Topography The present topographical and Understanding of the present
●
and geology geological conditions are unknown. state through a field survey
Neither removal of any existing
Management
facilities nor management of any
of abandoned ● None
abandoned site is expected in this
sites
Project.
The site is idle land owned by the
Resettlement ● Egbin Thermal Power Plant, and no None
resettlement of residents is needed.
Understanding of the present
state including the situations
Traffic from construction vehicles of communities near the
Living and will temporarily have adverse effect project site through a field
●
livelihood on the regional economy and survey, and consideration of
infrastructure. measures to alleviate the
impact based on the actual
Social environment

state
No cultural heritage property is
Heritage ● None
located near the project site.
Measures to alleviate the
Buildings, stacks and other structures
impact on landscape, such as
Landscape ● of the power plant may spoil the
forestation in and around the
landscape.
project site
Ethnic
minorities Neither ethnic minorities nor
and ● indigenous people reside in or around None
indigenous the project site.
peoples
Working Compliance with any manuals and Interviews with workers of
●
conditions NERC rules on working conditions the existing power plants

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 Forecast and
assessment
Countermeasures and
Category Check item Reasons for forecast and assessment

Unknown
Small
Large
policies

None
and and occupational safety is unknown. about working conditions,
occupational and confirmation of
safety compliance with manuals and
NERC rules
Healthcare, Confirmation of the present
safety and state and the possible impact
The present state of communities near
security of ● on communities near the
the project site is unknown.
local project site through a field
communities survey
Confirmation of the present
state including
Traffic from construction vehicles
communication near the
will temporarily have adverse effect
Impact during project site through a field
on the regional economy and
construction ● survey, removal of
infrastructure. Noise and vibration
work impediments to economic
from construction work will have an
activities, consideration of
adverse effect.
local traffic, and restrictions
Other

on work time
Measures to Whether any training is conducted or Understanding of the present
prevent ● not for workers to prevent accidents is state through a field survey,
accidents unknown. and training of workers
Expansion of monitoring
items including social aspects
Whether monitoring on social aspects
Monitoring ● and continuous
is conducted or not is unknown.
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

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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.

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 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)

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