Lafarge Africa Plc has signed an N11 billion contract with Chinese contractor, Rughn Power Corp, to build a captive power plant at its Ashaka plant in Gombe State.
According to the Chairman of the Board of Ashakacem, Mallam Suleiman Yahyah, the agreement is for erection of 16 megawatts lignite-fire plant for the firm.
Mallam Yahyah, who said this at the signing ceremony in Abuja on Friday, added that the power plant would supply consistent energy to boost the plant in order to increase the firm’s production capacity to 1million metric tonnes annually.
According to him, the power supply transformation was the first step in the development of the cement plant to recover cost leadership in the north east.
Yahyah said: “The north east region is a strategic region where Ashaka is supporting the construction programme of government. This project will further strengthen the relationship with Gombe State as well as the communities and reinforce the importance of Ashaka as the major manufacturing company in that part of the country.
In his response, Minister of Power, Works and Housing, Babatunde Fashola (SAN) represented by Minister of State for Power, Works and Housing, Mustapha Shehuri, stated that the federal government has signed a Power Purchase Agreement (PPA) with 15 companies to improve power supply using solar technology.
He added that with the PPA agreement, government is targeting over 1,500 megawatts to add to what Nigeria currently generates.