By George OPARA
There is a growing concern over the financial sustainability of the Bayelsa State new 60 megawatt Independent Power Plant as gas supply to the facility was estimated to cost about $3.5 million every quarter.
It also raised fresh questions about the viability of the project and whether the state will absorb the operational costs or pass them on to final consumers.
Engr Olice Kemenanabo, the Managing Director of the state Electricity Company revealed that the plant was designed to consume about 11.2 million standard cubic feet of gas per day, with the cost of gas feed projected at $3.5 million quarterly.
This disclosure came amid growing public scrutiny following Governor Douye Diri’s recent assurances that the plant was being installed with safety and protective systems.
In an inspection last week, the governor declined to disclose the total cost of the project when asked by journalists, insisting that the figures would be made public after completion, a promise that is yet, to be fulfilled.
However, beyond capital cost, stakeholders are yet, worried about the recurring operational expenses, particularly gas pricing, which is denominated in dollars.
With the Federal Government already spending trillions of naira on electricity subsidies nationwide, questions are being asked about whether Bayelsa State can sustain similar support for the plant or whether consumers will bear the cost through higher tariffs.
But some stakeholders, have downplayed the concerns, pointing to the state’s previous experience operating a 15 megawatt power plant.
They argued that residents, many of whom who pay for electricity under estimated billing without consistent supply, would be willing to pay for reliable power when it becomes available.
Spear News findings showed that the gas supply arrangement for the new plant was being backed by a joint venture between Oando PLC and NNPC Exploration and Production Limited.
On April 16, 2026, Oando declared that the joint venture had began gas delivery to the facility in Yenagoa, describing the project as part of the broader infrastructure development programme.
It is also gathered that gas is supplied through the Elebele Valve Station and supported by a long term agreement designed to ensure uninterrupted feedstock to the plant.
Despite the progress, uncertainty persists concerning critical downstream infrastructure required to deliver electricity to consumers.
Residents are awaiting clarity on whether the state will build a new distribution network, install transformers or rely on the existing system operated by the Port Harcourt Electricity Distribution Company.
Besides, Jampour Group, the contractor engaged for the project, is yet to begin work despite signing a $3 million metering agreement.
Consolidation of high operational costs, unresolved distribution challenges, and delayed execution have negatively hit home not a few residents who may have to wait much longer to benefit from the project.
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