The Feasibility Study Report On Lagos Thermal Power Plant Expansion Project in Federal Republic of Nigeria

Transcription

1 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

2 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

3 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 , 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 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

4 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 a 330kV transmission line, and is able to connect to additional lines kV lines 4 330kV lines 6330kV lines (The facilities are aged) 4 330kV lines ii

5 Item Egbin Calabar Sapele Ihovbor Lagos Calabar Bennin Bennin 5 The site is near an area where electricity is in demand. 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 Comparison of Power Generation Methods No. Power generation method Output breakdown Net thermal Type-1 Type-2 Type-3 Simple cycle gas turbine power generation with an advanced large gas turbine High efficiency gas combined cycle power plant with an advanced large gas turbine Super critical pressure conventional steam turbine power plant MHPS M701F4 x 6 units [Net power: 285 MW x 6 = 1,710MW] MHPS M701F4 2 on 1 2 or 1 on 1 4 [Net power: 877 MW x 2 = 1,754 MW] 300 MW BTG x 6 units [Net power: 300 MW** 6= 1,800 MW] Type-4 Large gas engine power plant 18MW Gas Engine x 100 units Notes [Net power: 18MW x 100 = 1,800MW] *: New & Clean Condition **: Nigeria s power system is small in size and the maximum capacity of each power generator is restricted to 300MW. efficiency 39%* 58%* 41%* 47% Figure 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

6 8,000 7,000 Accumulated 累積コスト cost: USD/kW USD/kW 6,000 5,000 4,000 3,000 2,000 1, Operating time: hours 運転時間 Hour Simple Cycle GT Combined Cycle GT Gas Thermal BTG Gas Engine Figure 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 shows a comparison of components of the power plant in these types. Table 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 3. With a bypass stack / Breakdown of 1 HRSG 4. Without a bypass stack/ Breakdown of 1 STG 5. With a bypass stack / Breakdown of 1 STG GTG single operation unavailable GTG single operation unavailable GTG single operation unavailable Output 75% Output 75% Output 75% GTG single operation GTG single operation GTG single operation available available available Output approx. 91% Output approx. 91% Output approx. 91% GTG single operation GTG single operation GTG single operation unavailable unavailable unavailable Output 75% Output 75% Output 50% GTG single operation GTG single operation GTG single operation available available available iv

7 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 8 Breakdown of 1 GTG 4 lines 8 lines 6 lines 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 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 % % 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

8 4.4 Generated electricity delivery facilities Table 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 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 Case Generation capacity (MW) No. of 330kV transmission lines Current Analysis Results 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 and 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 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 vi

9 Table Entire Project Schedule (Case 1) Feasibility Study 2 EIA Study and Report EIA Approved 3 EPC Proposal and Evaluation 4 Contract Negotiation 5 Contract Signning and Work 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 Entire Project Schedule (Case 2) Feasibility Study 2 EIA Study and Report EIA Report Approved 3 EPC Proposal and Evalaution 4 Contract Negotiation 5 Contract Signning & Work 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 shows the estimated project costs. Table 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, million) [USD 1,046 / kw] (eq. USD 1, million) [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 (eq. USD 2, million) JPY 223,050 million (eq. USD 1, million) Note: USD 1.00 = JPY 115 vii

10 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 Case Indicator Economic and Financial Analysis Evaluation Indicators FIRR B/C ratio (discount rate: 10%) Case % 1.63 Case % 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

11 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 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 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

12 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 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

13 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. Category Table Check item Preliminary Environmental Impact Forecast and Assessment Results Forecast and assessment Large Small None Unknown Countermeasures and Reasons for forecast and assessment policies Anti-pollution measures Air quality Water quality Waste Soil contamination Noise and vibration Subsidence Odor An increase in gas emissions including NOx will affect the air quality. An increase in effluents will affect the water quality of the lagoon. The construction work will generate waste. The present state of soil contamination, present measures against soil contamination, etc. are unknown. Construction work and operation of the power plant will cause noise in and around the project site. The present ground condition is unknown. The power plant will emit gases, and use ammonia and chlorine, which will generate odor. Continuous environmental monitoring, introduction of facilities satisfying emission gas standards and appropriate maintenance measures Continuous environmental monitoring, introduction of facilities satisfying effluent standards and appropriate maintenance measures Waste disposal measures during construction work Understanding of the present state through a field survey, and building of a system to manage pollutant resources Continuous environmental monitoring, introduction of facilities to reduce noise and restrictions on work time Understanding of the present state through a field survey Continuous environmental monitoring and prevention of leakage through regular xi

14 Forecast and assessment Category Check item Large Small None Unknown Reasons for forecast and assessment Countermeasures and policies facility inspections Natural environment Social environment Sediment Protected areas Ecosystem and biota Hydrology Topography and geology Management of abandoned sites Resettlement Living and livelihood Heritage Landscape Ethnic minorities and indigenous peoples Working conditions No activity will be taken to affect sediment. No protected area exists near the project site. The pollutant resources cited above will have an impact on the ecosystem and biota in and around the Project site The impact of an increase in the amount of water taken and emitted between the lagoon and the power plant is unknown. The present topographical and geological conditions are unknown. Neither removal of any existing facilities nor management of any abandoned site is expected in this Project. The site is idle land owned by the Egbin Thermal Power Plant, and no resettlement of residents is needed. Traffic from construction vehicles will temporarily have adverse effect on the regional economy and infrastructure. No cultural heritage property is located near the project site. Buildings, stacks and other structures of the power plant may spoil the landscape. Neither ethnic minorities nor indigenous people reside in or around the project site. Compliance with any manuals and NERC rules on working conditions None None Continuous environmental monitoring and various countermeasures against contamination cited above Understanding of the present state through a field survey and continuous environmental monitoring Understanding of the present state through a field survey None None Understanding of the present 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 None Measures to alleviate the impact on landscape, such as forestation in and around the project site None Interviews with workers of the existing power plants xii

15 Forecast and assessment Category Check item Large Small None Unknown Reasons for forecast and assessment Countermeasures and policies Other and occupational safety Healthcare, safety and security of local communities Impact during construction work Measures to prevent accidents Monitoring and occupational safety is unknown. about working conditions, The present state of communities near the project site is unknown. 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. Whether any training is conducted or not for workers to prevent accidents is unknown. Whether monitoring on social aspects is conducted or not is unknown. and confirmation of compliance with manuals and NERC rules Confirmation of the present state and the possible impact on communities near the project site through a field survey Confirmation of the present state including communication near the project site through a field survey, removal of impediments to economic activities, consideration of local traffic, and restrictions on work time Understanding of the present state through a field survey, and training of workers Expansion of monitoring items including social aspects and environmental that is in progress continuous monitoring 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 xiii

16 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. xiv

17 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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