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Building

A Sustainable
Future
Sustainability Report 2015
Our Sustainable
Footprints

ABOUT THIS PUBLICATION

This is the First Sustainability Report for Egbin Power PLC. Data in this report covers the period of January, through December, 2015.
Financial Information is given in U.S. dollars and Nigerian Naira. This report was prepared using the Global Reporting Initiative Sustainability
Reporting Guidelines (GRI guidelines) G4.1 Reporting Guidelines. The mission of the GRI is to promote international harmonization in the reporting
of relevant and credible corporate economic, environmental and social performance information to enhance responsible decision making. The GRI
has not verified the contents of this report, nor does it take a position on the reliability of information reported herein.

For further information about the GRI, For the latest Egbin news, in-depth information on Egbin and
please visit: www.globalreporting.org career information please visit:
www.egbin-power.com
Content
Welcome 06
Board Chairmans Notes 07
CEOs Message 12

Profile 16
LIving Our Core Values 18
Corporate Governance 20
Business Blueprint 21
Egbin Plant Description 25

The Egbin Sustainability Report 40


Commitment to Sustainability 41
Sustainability Across The Value Chain 43
Business Approach 44
Defining our Material Aspects 48
Egbin Sustainability
Report 2015

Economic Sustainability 58 Editor


Uade Ahimie

Business Sustainability 59 Editorial Direction


Sahara Group Corporate
Communication
Plant Availability & Reliability 63
Assistant Editors
Project Investments 69 Benjamin Aikodon
Olushola Oluyemi

Supply Chain Management 75 Project Managers


Benjamin Aikodon
Olushola Oluyemi
Omowonuola Oyeledun
Elizabeth Onuoha

Environmental Sustainability 78 Creative Direction


Victory James Ugwudike

Environment Management Systems 79 Art Direction


Frank Ileogben
Victory James Ugwudike
Compliance with Environmental Laws 81
Layout/Illustration
Power Generations & Climate Change 83 Witts & Stratts

Photography
Conservation of Biodiversity 88 Photography by Seun O
Major Works Studios

Social Responsibility 92
Community Relations 94
Our People 96
For information related to this
Health Safety and Security of our People 102 publication, send an email to corp.
gov@egbin-power.com or visit
www.egbin-power.com
Our Commitment to Safety 104
Sustainability Report 2015 6

Welcome

Board Chairmans Notes CEOs Message


Sustainability Report 2015 7

Board Chairmans Notes

As part of our continuous efforts in ensuring


transparency and that the assets, operations and
relationships of the organization are satisfactorily
and responsibily managed, through adherence to
international best practices

E
gbin Power plc was officially handed over As part of our continuous efforts in ensuring transpar-
to KERL in November 2013 by the Bureau ency and that the assets, operations and relationships Kola Adesina
of Public Enterprises (BPE) as part of the of the organization are satisfactorily and responsibly Chairman, Board of Directors
Federal Government power sector privat- Egbin Power PLC.
managed, through adherence to international best
ization program. Despite the wide-ranging challeng- practices, we operated on the following key priorities:
es and increased operating costs, KERL has turned
around the plant and operated the assets efficiently Environmental Management
and satisfactorily, investing substantially in the plant Business and Governance
since take over. Social Relations and Management
Sustainability Report 2015 8

Egbin Power Plc is Nigerias largest power plant not


only by the virtue of our generating capacity, but also
because of the quality of employees we possess.

Egbin Power Plc is using this medium


to reach out to all our stakeholders on
how we have taken these situations as
an opportunity to take a leap forward
by striving to achieve sustainable
growth and bringing service delight to
all ourstakeholders.

The report provides more information


0
Zero Spills
compliance since
plant, with the option of generating
power through the use of Natural Gas
or High Pour Fuel Oil. In ensuring our
commitment to a sustainable environ-
ment through reduction of greenhouse
and smog gas emissions, the power
plant operates mainly on Natural gas,
thereby minimizing the use of High
Pour Fuel Oil (HPFO) in the generation
end of the 2015 reporting year. Some of
these initiatives and measures include


Tripled compliance checks and tests
Investment in an environmental spill
management system.
Continued awareness campaigns and
programs for all staff of the company

on major activities and performances 2013 process. In order to manage future Business and
that are aimed at creating and imple- natural gas availability and ensure the
minimal use of HPFO, thereby avoiding
Governance
menting a sustainable system, whilst
also providing guidance on some of our any crisis relating to power generation Rebranding of the
in the country, Egbin has signed several
future plans for business sustainability
forward gas contracts, to ensure gas
Organization
to our stakeholders. KERLs understanding of the need
supply to the power plant for optimum
to build a sustainable organization
electricity generation for thecountry.
prompted the decision to sign an Op-
Environmental eration and Maintenance agreement,
Management Zero Spills Compliance with Korea Electric Power Company
With the establishment of Egbin (KEPCO) a world class electric power
Greenhouse Gas Power Plc health and safety initiative operator in Korea, as a technical partner.
since take over in 2013, the employees
Emissions Environmental
through outstanding initiatives and This partnership brought with it the
Compliance proactive measures, have been able to needed rebranding of the organization
Egbin power plant is a dual fired power ensure the least amount of spill by the which focused not only on the technical
Sustainability Report 2015 9

aspects of the organization such be investing in an industrial park, with Responsible Relations
as plant upgrades and rehabilitation, the aim of boosting the economy of the
but also employees welfare through local community, through creation of
with the Communities
Today, sustainability requires several
improved working environments and job opportunities and strategic infra-

2670MW
commitments in creating lasting
standard of living. structural developments.
values which includes close relations
with key local stakeholders in the
With combined efforts of all our inter-
nal stakeholders, Egbin power plant
Social Relations environment and society where our
New Power Assets organization operates. In this regard,
presently operates at an increased
Planned Capacity Increase in the
Employee Management, we embarked on several corporate
efficiency of 32%, exceeding the target
of 28% for 2014.
next 5 years Development and social responsibilities, which were not
limited to: vocational trainings, supply
Motivation of electricity to the health facility,
Sound Governance and Egbin Power Plc is Nigerias largest
rehabilitation of school facility, donation
power plant not only by the virtue of communication equipments to the
Fair Corporate Conduct of our generating capacity, but also police area command.
In alignment with international rec- because of the quality of employees we
ommendations and best practices possess. In 2015 considering the fact Our passion in ensuring the zeal to
on governance, Egbin Power Plc has that Egbin is a company transiting from excel, which we believe abounds among
developed and approved a corporate government management to private the younger generation has inspired
governance framework and opera- sector management, we were saddled a scholarship scheme initiative. This
tional business principles to protect
the company and the employees. This
Egbin with the responsibility of ensuring scholarship initiative will be coming on
adequate learning and development board in 2016.
frame work encapsulates an anti-cor-
ruption compliance program, whistle
Industrial Park which covered areas such as soft skills
Boosting the Egbin local community and managerial competencies, com- As we continue on our sustainability
blowing mechanism, human rights puter proficiency and new technical
with strategic industrial facilities for journey, it is pertinent to note that as
management and the company code knowledge trainings. These learning and
local economic sustainability an organization, we are not excluded
of ethics. The implementation and development initiatives were facilitated from the current economic realities.
operations of the corporate gover- locally, regionally and internationally. This is especially true as it relates to the
nance framework will take effect in
continued increase in foreign exchange
January,2016.
As an ethical organization, we under- rates and our organizations ability to
stand the need to identify, recognise, source for foreign exchange from the
Infrastructure Investment be completed over a five-year period, reward and and continue to motivate Central Bank of Nigeria.
New Power Asset which will increase the total generation our employees to achieve outstanding
In our quest for increased power sup- capacity to 2,670MW. performance. We birthed the Em- This coupled with the expected in-
ply to the Grid, KERL will be investing ployee of the Month initiative in 2015, crease in the countrys inflation rate
in a new power project Egbin 2. This Egbin Industrial Park where employees are beneficiaries of poses a huge challenge as most of the
is a proposed combined cycle power Considering the organizations sustain- the benefits that accrue to this title as equipment required for smooth opera-
plant (Gas & Steam), with a capacity ability initiatives through effective com- a reward and recognition for hard work tions are sourced from the international
of 1350MW. The project is expected to munity relations, Egbin Power Plc will and efforts. markets. However, we believe that this
Sustainability Report 2015 10

Egbin Power Plc will make all necessary efforts towards


attaining our goals as a company that will be respected by
the society in embracing change in the dynamics of power
generation in Nigeria as we continue to pursue higher
stakeholder value.

threat would not jeopardise our business sustainability, efforts towards attaining our goals as a company that will
but may impact gravely on some of our sustainability be respected by the society in embracing change in the
strategies either in the short or medium term, one of dynamics of power generation in Nigeria as we continue
which is the proposed increase in generation capacity. to pursue higher stakeholder value. To that end, we will
continue to maintain open communication with all our
In terms of our strategic initiatives towards ensuring stakeholders and pay close attention to what they have
sustainability, we have through our partnership with to say about our relationships.
KEPCO ensured that in the short term, there is the
technical capacity to maintain our operations. We have I use this medium as an inaugural and continuous oppor-
also partnered with the National Power Training Institute tunity to ask for the support and encouragement of all
As an ethical
of Nigeria (NAPTIN) to ensure that over the medium term our stakeholders towards achieving our goal of being organization, we
that we are continually training and developing young the provider of choice wherever ENERGY is consumed`
engineers who will over the next five years become the
under- stand the need
main stay of the organization through our Graduate to identify, recognize,
Engineering Program (GEP). This program, which is the
first in the history of the power sector in Nigeria would Thank you
reward and continue to
provide continued human capital requirement for the motivate our employees
organization. Kola Adesina
Chairman, Board of Directors
to achieve outstanding
In conclusion, Egbin Power Plc will make all necessary Egbin Power PLC. performance.
Sustainability Report 2015 11
Sustainability Report 2015 12

CEOs Message

Our commitment to building and improving the


relationships with our surrounding communities
and the society in general is key part of the
companys sustainability targets

Dallas M. Peavey Jr.


Chief Executive Officer

T
Egbin Power PLC.
he 2015 Sustainability Report for Egbin achievements and potential concerns as regards our
power Plc is the first of what will businessoperations.
subsequently be an annual report on the
impact of our business, following the The report has tried to capture major milestones and
transition from a government owned and managed concerns and provides guidelines to the strategic
organization to one owned and managed by private initiatives that have been conceptualized and
investors in November2013. developed over the last two years since takeover of
the business operations in a bid to ensure we operate
The report addresses our corporate responsibility and responsibly despite several challenges that has come
stakeholder engagement and addresses areas of about as a result of the change in orientation from a
Sustainability Report 2015 13

government managed business to one solution providers, for the challenges of In our continuous efforts To be the Provider
that is managed by private investors. the power sector.
of Choice where Energy is Consumed the
Energy Efficiency organization is investing in a Combined Cycle
Major In comparison to the previous years Power Generating asset which is expected to be
Accomplishments of operation, the household lighting
consumption within the plant complex completed by 2020
and Disappointment has reduced significantly by 55%. This
reduction in consumption is credited
Employment of Trainee
to the energy management program
Engineers adopted by the organization, when we
Upon coming on board in 2013, we embarked on the installation of energy
recognized the fact that though the saving bulbs and proper maintenance

1100MW
organization had an assembly of ex-
perienced employees, there was a gap
of photocells on the street lights. Financial Strength
Since the transition from a government
as most of the technical operators and As part of our efforts, in reducing en- managed organization to one managed
management employees of the plant ergy consumption, we partnered with by private investors, the organization
had several years of experience without KEPCO in the refit of 3 generating units Milestone Achieved
has embarked on major rehabilitation of
enough pool of replacements in the within our asset. The aim of the refit Egbin exceeded the 45% average
the generation plant and other facilities
event of succession, if there was the was to bring the facility up to date with generation for the first time in over
within the power plant complex.
need for exits. In view of this and our the latest technology in power genera- a decade after takeover
commitment to sustainability, we de- tion. The refit included the upgrade of
veloped and implemented the first ever In 2015, about 25 Billion Naira was in-
the control system to the EmersonTM
Graduate Engineering Program in col- vested in the rehabilitation and upgrade
Ovation Distributed control system.
laboration with Ikeja Electricity Compa- of the plant facility to the modern
ny where over 100 graduate engineers digital technology control system.
With this giant stride, we not only
were trained to strengthen our work This rehabilitation is inclusive of the
exceeded the set target for efficiency
force of engineers, with 33 young men sixth generating Unit, which has been
for by 4%, we were also able to increase
and women. Our Trainee Engineers have dis-functional for about a decade.
our available generating capacity by
been exposed to technical and manage-
about two times from an average
ment trainings. With the combined ef- considering the improvement in the As it relates to human capital develop-
generation capacity of 550MW to
fort of National Power Training Institute assets undertaken between the last ment, the organization has invested the
about1000MW.
of Nigeria (NAPTIN) , Integral Assets quarter of 2014 and the first quarter of sum of 153 Million Naira in the recruit-
Limited and technical partners KEPCO, 2015, Egbin exceeded the 45% average ment, training and development of
we have developed and are currently Improved Generation generation before takeover and in the theemployees.
implementing a career management Before the takeover and up until the second quarter of the year hit a mile-
model that will bring about proper early part of 2015, Egbin had been stone of 1100MW generation. This had Despite these huge achievements
succession plans for all the departments unable to generate averagely beyond not been archived by the organization - human capital investments and
of the organizations, preparing them as 45% of its installed capacity. However, for over a decade. plant facility development towards
Sustainability Report 2015 14

generating more power for the country, As such, the organization has embarked tive management team comprising of 7 implementing these initiatives.
we have been faced with the major on revamping its sewage treatment members. Our goal in respect of gender
challenge of receipt for the sale of facility. This facility has been in a dilap- diversity is to increase the current We would be appreciative if we receive
energy sold from the major stakeholder. idated state for several years before population of women in our work force any and all objective feedback on this
During the year, the levels of receivables takeover and transition in 2013. The from the current level of 10% to at least report through our website
peaked at N57 Billion of which we had revamping was fostered from the need 20% over the next five years. www.egbin-power.com or through our
received about N11.4 billion representing to further protect the aquatic life of Corporate Governance email address
about 20% of the receivables. However, our surrounding water body, through Our commitment to building and at corp.gov@egbin-power.com.
we believe this is no deterrent to our improved quality of the waste disposed improving the relationships with our
sustainability as we are continuously from the generating plant. surrounding communities and the Thank you
dialoguing with all the relevant society in general is a key part of the Dallas M. Peavey Jr.
stakeholders to ensure payments for Although we have put in place interna- companys sustainability targets. In view Chief Executive Officer
the outstanding receivables. tional standards for management of oil of this, we have continued to embark on Egbin Power Plc.
spill, in April 2015, we recorded a minor projects and programs that will con-
(Tier 1) spill according to NOSDRA tinually provide us with a social licence
Our Commitment classification on oil spills. The spill was to operate within our society. These
Towards Building adequately contained and reported to corporate responsibility initiatives have
government agencies responsible for led to increased ability to generate
a Sustainable the management of such activities for power and also helped in improving the
Organization further investigation in line with our standard of living within the communi-
In our continuous efforts To be the governance practices. Following their ties around the power plant.
Provider of Choice where Energy is report on their findings, the organiza-
Consumed the organization is investing tion has adopted several preventive Building on the rebranding and reorien-
in a Combined Cycle Power Generating measures to ensure a Zero Spill Com- tation of the organization, which kicked
asset which is expected to be com- pliance going forward. These initiatives off in Egbin following the takeover by
pleted by 2020. This project with an will be highlighted in the next report- KERL in 2013, the Board of Directors of
estimated capacity of 1,350MW would ingyear. Egbin have approved fusing transpar-
be the biggest combined cycle power ency and effective governance through
generating asset in Nigeria. This invest- As an organization that believes in a several policies, in the long term vision
ment will increase the installed gen- system that encourages the partici- of the business. These policies will be
eration capacity of the organizations pation and involvement of our people adopted by the organization in 2016.
generating asset by 100%. in its operation, we are working on
improving the diversity of our employ- Though our journey of reporting on
Asides the proposed investment, ees to be more reflective of gender. our path to continuous sustainability
the integration of Sustainability into Though we are yet to attain the desired has only just begun, it is believed that
Egbins operational strategies has level of our gender diversity initiatives, the report will provide an insight into
triggered new conservatory objectives, we have started the implementation our strategic initiatives that have been
for the protection and safety of our from the management team where we conceptualized and developed in our
environment and society. have 2 female members in the execu- bid to ensure we operate responsibly in
Sustainability Report 2015 16

Profile

Overview Living Our Core Values Corporate Governance Business Blueprint Egbin Plant Description
Sustainability Report 2015 17

E
gbin Power Plc (Egbin) which ing from anion, cation, mix-bed resin where it is cooled by lagoon water, till conductivity, in order to ensure that the
is located within Egbin Town, vessels, etc., after which it comes out it is turned into liquid (condensate) in cost of generation is at its minimum in
in Ikorodu Local Government as demineralized water. The demineral- the hotwell. The condensate is pumped order to be able to deliver electricity to
of Lagos State, South West ized water is pumped into a 705 tons/ from the hotwell, through a series of all our various stakeholders at the least
Nigeria, is the largest power generating hour boiler, where it is heated through heaters, to improve the temperature be- possible costs.
plant with over 30 years of operation. a series of convoluted tubes, to attain a fore it is sent into the boiler for further
Egbin contributes over 20% to the temperature of 541 degrees centigrade heating, and the cyclecontinues.
overall generation output of electricity at a pressure of 12,500Kpa. At this
in the country. temperature and pressure, the fluid is Due to the fact that the steam tur- Key Timeline
termed superheated steam. bines and generator rotor share the
In 2013, The Sahara group, through same shaft, the rotation caused by
a special purpose vehicle KEPCO The superheated steam is sent into the the passage of the steam, through the

1985
Energy Resources Limited (KERL) steam turbines, which shares the same stages of each of the turbines, caus-
acquired 70% shareholding in Egbin. shaft with generator rotor. The steam es a rotation of the generator rotor at
The asset was officially handed over to sent into the turbine, causes the rota- 3000 revolutions/minute (RPM), which
KERL in November 2013 by the Bureau tion of theshaft. is enclosed by stator windings. The gen- Date established
of Public Enterprises (BPE) as part of erator converts the mechanical energy
the Federal Government power sector The steam turbine is divided into three in the rotation of the shaft into a set
privatization program. As at December - High Pressure turbine, Intermediate of 3-phase Alternating Current electric
2015 Egbin electricity generating
portfolio had an in-service capacity of
1320 megawatts(MW).
Pressure turbine and Low pressure
turbine. The superheated steam leaves
the boiler and passes through the High
voltage of 16KiloVolts, one from each
of the windings of the generator, which
are further stepped up, by a generator
2007
Initial acquisition date
pressure turbine, which has 8 stages transformer to 330KV, before being
Egbin Power owns and operates Six (Blade and Nozzle). Upon leaving the exported to the grid system.
220 megawatts (MW) Steam Turbines, High Pressure turbine (HP Turbine), it is

2013
one 24 megawatts (MW) Gas Turbine resent into the boiler for further heat- Due to the effects of friction, and also
and one 1.5 megawatts (MW) Diesel ing to gain more heat energy, before heat generated in the process of the
Generator. The steam turbines are passing through the 6-stage Interme- electricity generation in the generator,
dual-fired (natural-gas and high pour diate Pressure Turbine (IP Turbine). hydrogen gas is used for cooling the Final Handover to
fuel oil). The steam at this temperature and windings. Their unique property, such as private management
pressure, still possessing some energy, high thermal conductivity, high specific
Egbin operates a closed cycle system of passes through a cross-over pipe into heat capacity and low density has made

2015
power generation. The process involves the 10-stage Low Pressure Turbine (LP hydrogen most suitable for cooling.
getting ground water from the wells, Turbine) for further energy extraction.
after which the water is pre-treated and Egbin produces hydrogen gas through
separated into Portable water (Hu- Once sufficient energy has been ex- the process of electrolysis of water, First time ever
man Consumable) and Process water. tracted from the steam, having passed thereby separating hydrogen from to generate over
The process water is further treated, through the three turbines, the steam oxygen. Hydrogen gas was selected 1000MW of electricity
through different resin vessels, rang- falls into a shell and tube condenser, over other gases with higher thermal after take over
Sustainability Report 2015 18

Living our Core Values


Safety
We ensure safety in all our

F
ollowing our transition from a
areas of operations.
government agency to a full-
fledged private commercial
organization, Egbin Power
PLCs perspective to sustainability Professionalism
is gradually transforming to one of To deliver on all our
stakeholder value creation. endeavors with the highest
level of professionalism
Sustainability is at the heart of our
operations, services and maintenance
programs, by these means, we
ensure that we are always living our Environmental
corevalues.
Consciousness Sustainability
This is captured through SPICES
To ensure all our operation To remain committed to
are environmentally building a sustainable
friendly business

Integrity and
Discipline
To maintain integrity through
discipline in all our actions

Commitment to
Stakeholders
To maintain our commitment
to deliver quality service to
all our stakeholders
Sustainability Report 2015 19

Our Vision
Our vision is To be the provider of
choice where energy is consumed

Our Mission
We transform through sustainable and
reliable innovation in energy generation,
connecting lives and positively
impacting livelihoods.
Sustainability Report 2015 20

Corporate Governance

E
gbin as presently Our codes and Board of Directors
constituted has instituted core values have
corporate governance been embedded Upon takeover of Egbin Power PLC by KEPCO In addition to the traditional roles of setting
structures to enable
in our systems Energy Resource Limited (KERL) the the pace and having an oversight responsibility
effective implementation of the
companys processes, procedures
in order to form preferred bidders for the power asset, the for current and future development; and

andpolicies. a mechanism organization held its inaugural board meeting in determining and reviewing company strategies,
November 2013, where a new 7-member board goals and policies, the Board which consist of
through
was inaugurated and the Board charter guiding seven members, ensures that there is a system
In controlling, directing operations which sound the operations of the Board approved. through which the Board Committees (Audit,
and implementing processes, the governance is Risk and Governance Committee; Finance,
responsibilities of the relevant provided In line with the Board Charter, some of the main Investment and General Purpose Committee;
stakeholders are explicitly expressed
responsibilities of the Egbin Board of Directors and Technical and Operations Committee)
in a way that assures operational include - company policy formulation, oversees the efficiency, effectiveness and
excellence whilst functioning in a enterprise risk management framework design, adequacy of the organizations internal control
regulatory and social environment. performance accountability and responsibility, systems. This includes and is not limited to the
corporate governance and MEMART adherence. provision of an Enterprise Risk Management
The Egbin corporate governance Framework and the delegation of authority
framework defines professionalism, Others are ensuring effective internal control matrix to guide the executive management
establishes our Code of Ethics, system, performance appraisal of senior in managing the day to day operations of
professional and business conduct, management and board members, and theCompany.
and operational value systems, that overseeing a sound communication mechanism
clearly set out the principles and through the Board approved communication Accordingly, the procedures and structures
guidelines by which we conduct our policy and effective stakeholders dialogue. that are functions of our internal controls and
business with all ourstakeholders. risk management system are geared towards
The instruments of sound corporate assuring our stakeholders on the achievement
Our codes and core values have governance are designed and approved of our set objectives in operational
been embedded in our systems by the Board of Directors of Egbin Power effectiveness and efficiency, reliable regulatory
in order to form a mechanism PLC for implementation and execution by and financial reporting, and compliance with
through which sound governance the Corporate Governance and Compliance laws, regulations and policies.
is provided from the most senior Department of Egbin Power Plc to foster
decision making level the Board the values, principles, standards and norms By this, we identify, assess and prioritize risks
of Directors, to the executive of behaviours enshrined in our corporate in order to mitigate, monitor and control the
management and down to the line governance guidelines, codes of ethics and potential chance of liability and loss, whilst
managers andemployees. human resource guidelines. maximizing the realization of opportunities.
Sustainability Report 2015 21

Business Blueprint

T
he business of power the Transmission Company of Nigeria, Executive Management
generation in Nigeria is one who then transmits it through the grid
that requires substantial to the electricity distribution companies
In ensuring that the goals, objectives, policies and corporate
financial and professional and onward to the consumers.
strategy established by the Board of Directors of Egbin
commitment. As such we have
Power PLC are completely executed and achieved, the daily
realigned and created an environment For a power company like ours, we
operations of Egbin Power PLC have been consigned to the
that works and functions with integrity basically deal with the Transmission
direction and control of the executive management team led
and compliance with relevant guidelines Service Providers, the Nigerian
by the Managing Director and Chief Executive Officer - Dallas
and regulations, considering the fact Bulk Electricity Trading Plc and the
Peavey Jr.
that the company operates in a firmly Market Operators. Others are the
regulated industry that demands System Operators, the Nigerian Gas
In optimizing our business operations and processes in order
adherence to industrial regulations as Company and the Nigerian Electricity
to make certain that our business strategy is efficient and
stipulated by the Electric Power Sector RegulatoryCommission.
sustainable, the management team have broadly categorized
Reform Act 2005, the Nigerian Grid our employees into two major divisions: Technical Services
Code, the Nigerian Electricity and Business Support Services.
Regulatory Commission (NERC)
guidelines and Code of Corporate The Technical Services division are the departments that
Governance, the directives of the are involved in the operation and maintenance of the power
Federal Ministry of Power plant, whilst monitoring its conditions, ensuring its optimal
amongst others. efficiency and assuring a safe work environment.
The Transmission Company of Nigerias Switch Yard
As a result, the company operates The Business Support Services division are the operations
its business in compliance with departments which are focused on ensuring the smooth
the highest safety, operational and run of the day to day activities. They ensure that human
maintenance standards required to resources are adequately allocated; the information
position the company in tangent with technology infrastructure functionality is maintained, the
internationally acclaimed bestpractices. safety and security of staff and equipment is guaranteed; and
projects and investments are funded and monitored while
Considering the nature of our busi- ensuring employees are timely paid.
ness, we are typically at the center of
the energy value chain in Nigeria. This The management team comprises of the Chief Executive
is because, we generate power using Officer, and the heads of departments: - Operations,
natural gas from the Nigerian Gas Com- Instrumentation and Control, Turbine Maintenance,
pany, and then wheel out the power to Boiler Maintenance, Electrical Maintenance, Management
Sustainability Report 2015 22

Information System, Human Executive Management Management Team


Capital Management, Finance
and Accounts, Procurement and
Chief Executive Officer
InformationTechnology.
Chief Financial Officer
Plant Director
The executive management team
Human Resource Manager
meets on a weekly basis in order to
Operations Manager
avail the opportunity to chart paths
Chief Security Officer
needed to accomplish the goals, targets
Legal Adviser
and objectives set by the board for
theorganization.

For a sustainable stakeholders value Chief Executive Officer CEO


creation, the organization structure of Head Information Technology - IT
Egbin has been redesigned to reflect Head Projects
the ensuing departments and their Head Management Information System - MIS
various units: Head Legal
Head Procurement
Head Operation
Head Operations Training
A cross section of some of the Egbin Executive Team and Management Team
Head Maintenance
Head Compensation
Chief Security Officer

Chief Financial Officer CFO


Head Human Resource
Head Health, Safety & Environment - HSE
Sustainability Report 2015 23

Number of Staff Technical Services Instrumentation and Control


Maintenance
planning, execution, monitoring and
control of projects.
Responsible for the maintenance
Boiler Maintenance of the distributed control system, Procurement
Responsible for the maintenance and process equipment, the equipment Re 12 pt sponsible for our supply
repair works on the steam generator, protection systems and automatic chain management system and
including its pressure parts, valves, controls. procurement management process.
furnace, tubes, piping and the boiler
auxiliaries. Health Safety and Environment Information Technology
Responsible for reducing hazards Responsible for internal and external
Turbine Maintenance and risks as low as reasonably communications, emailing system
Responsible for the maintenance practicable. and internet maintenance.
of the high pressure, intermediate
pressure and low pressure turbines; Chemistry Operations Security
boiler feed pumps, power house Responsible for the production of Responsible for providing a safe and
equipment, water intake area pumps demineralized water, fresh water and secure work environment that is free
and equipment, hydrogen plant and potable water. Also responsible for from threat and danger.
other turbine auxiliaries. boiler water quality assurance and
28% quality control. Corporate Finance
Electrical Maintenance Responsible for controlling

43% Responsible for the maintenance of


power transformers, circuit breakers,
expenditures and revenues, manage
investments and account for assets

29% plant electrical system, electric


motor valves, and other electrical
and project expenditures.

equipment.
Business Support
Services
Shift Operations
Operate the boilers, turbines
and generators (BTG) in order to Human Resource
generate power. The local plant Responsible for the allocation of
30 - 40 41 - 50 Above 50 operators operate the plant from personnel to their functional areas.
within it, while the BTG operators
operate the plant from the central Maintenance Planning
control room. Responsible for scheduling, planning
and monitoring maintenance
Efficiency programs and outage jobs.
Responsible for the condition
monitoring of the plant in order to Projects
guarantee optimal plant efficiency. Responsible for the initiation,
Sustainability Report 2015 24

Organizational Chart
Egbin Board of
Directors
Group Corporate Support Functions

Legal & Human Corporate Internal Group IT


Regulatory Resources Comms Audit Support
CEO, Egbin

Internal
CEOs Office
Audit
MIS, Perfce &
Legal & Regulatory
Corp Planning
IT Support

Security

Operations
Operations Communications Plant Operations
& Training
Security
Administration
Deputy Plant Maintenance
Operations Planning

Human Corporate
Finance
Resources Services
Maintenance
Operations Maintenance
Support
HSE Revenue Mgt Employee
& Reporting Relations
Community
Relations &
Treasury / Career & Fleet
Admin & Comms.
Boiler Funds Mgt Perfce Mgt Management
Operations Procurement
Mgt Acct & HR Schools
Efficiency Procurement Travel Desk
Shift Ops Turbine Stores / Inventory
Budget Operations
Technical Technical Training
Discipline, grievance Canteen
Payroll & appeal
Services /
Electrical Leave administration
Chemistry Technical Club House
Admin Employee Relations
Employee Welfare
CPP I&C HR Records Facilities
Demin
Kepco Staff Flue Gas
Maintenance
O&M Finance
Sewage / Water
Mech Support Maintenance
EGBIN Staff Fuel Analysis
Water Treatment Workshop Cleaning
Plant Landscaping
Outsourced Functions
Auto
Workshop
Sustainability Report 2015 25

Egbin Plant Description

E
gbin power station is a The Six 220 Megawatts (MW) Steam Turbines
self-contained gas and oil
fired steam electric generat-
ing station, with an associated
housing colony for staff, owned by the
Egbin Power PLC, LagosNigeria.

The station has an initial capacity of


1320MW with provision for future ex-
pansion. The initial capacity consists of
six steam generators -turbine genera-
tors of 220MW nominal capacity each,
housed in a single support structure
and enclosure.

Each unit comprises a steam generator


with reheat and super heat cycles, an
extraction steam turbine with automatic
run-up and supervisory systems and a
hydrogen cooled generator with auto
synchronization and voltage regulation.

Combustion air is provided by two 50%


duty forced draft fans, the feed water
cycle comprises a steam surface con-
denser with air ejectors, tube cleaning
equipment, two 100% condensate ex-
traction pumps, three 50% duty electric
boiler feed pumps and feed heating
trains of three low pressure heaters;
one deaerator and two high pressure
heaters.

Fuel is supplied to the units from com-


Sustainability Report 2015 26

mon handling systems. Fuel oil is stored system services the station and com-
in four main storage tanks and distrib- pressors, the hydrogen generation plant
uted to the unit via six intermediate and the Heating Ventilation and Air
storage day tanks. Natural gas is provid- Conditioning (HVAC) facilities.
ed via a high pressure gas line; however
pressure is reduced before distribution The flue gas, after passing through gas/
to the units. The units are capable of full air heaters, is exhausted to atmosphere
load operation on both natural gas and through one of the two stacks. Instru-
fuel oil. Natural gas is used for burner mentation is used to monitor the flue
start-up and liquefied petroleum gas is gas and ensure its compliance with
available from storage to permit opera- environmental requirements.
tion with oil if natural gas is unavailable
The station is operated from a central
for burner start-up.
control room with provision for control
of ix units, common services, electrical
Water is required to make up losses
distribution and high voltage switch-
due to blowdown, vents and drains is
gear. Telephone, public address and
provided from a common water treat-
ment plant. Raw water is available from
a series of deep wells. Cooling water is
supplied by a circulating water system,
a closed circuit cooling water system,
and a common services cooling water
system. The circulating water system
draws cooling water from the lagoon
for the turbine surface condenser and
the closed circuit cooling system heat
exchangers. The closed circuit cooling
system services the steam generator
and turbine auxiliaries. Two 50% duty
circulating water pumps are provided
for each unit. The pump discharges are
interconnected as follows:

Discharges of unit 1 and unit 2


Discharges of unit 3 and unit 4
Discharges of unit 5 and unit 6

These interconnections allow three


circulating water pumps to supply two
units. The common services cooling
Sustainability Report 2015 27

clock systems are provided for the service transformers and a black start
coordination of control activities remote transformer are provided to ensure the
from the control room. availability of power within the station
and to control the connection and dis-
The station electrical distribution sys- patch of load to the grid system. 6.6KV
tem is engineered with a minimum of station boards, which are connected to
two alternate supplies to each voltage the 330KV or 132 KV systems through
distribution level. A 415V emergency the station service transformers, feed
diesel generator is provided to supply common services such as air compres-
the power for a safe shutdown of the sors, fuel oil transfer pumps, general
unit in case of unit trip and external plant lighting, HVAC etc. thus utilizing
sources of power are not available. the grid to supply the stationauxiliaries.
A gas turbine is provided to supply
power for station auxiliaries during a The electrical arrangement is such that
blackstart. during normal operation, unit auxilia-
ries are fed from the 6.6KV unit board,
A high voltage switchyard is controlled which is connected to its own genera-
from the central control room. Indi- tor through a unit service transformer.
vidual unit transformers, three station For start-up purposes, the auxiliaries of
Sustainability Report 2015 28
Sustainability Report 2015 29

each pair of units are also served by a Hydrogen generation


6.6KV station service board. Water Treatment
Sewage facilities
In line with this concept, the transfer of Fuel unloading and transfer facilities
load is from the 6.6KV station board to
the 6.6KV unit board after start-up and These facilities are controlled locally.
synchronization with the system, and
from the 6.6KV unit board to the 6.6KV A self-contained housing colony is pro-
station board prior to shut down. vided for the convenience of operation-
al staff. Full community and recreational
The black start gas turbine is connect- facilities include a staff club, medical
ed to the 11KV board and provides a treatment centre and sports field. Pro-
source of 6.6KV start-up power through visions are made for a shopping centre,
the black start transformer and 6.6KV police station, bank and post office.
black start board. A 33KV local-infeed Utilities and sanitary services are pro-
is connected to the 11KV board through vided to internationally accepted stan-
a 33/11KV substation transformer and dards. Access to the station is available
provides back-up power to the housing by road, by sea to the station wharf and
colony loads and fresh water wells. by air via the helicopter landing area.

415-volt unit auxiliary boards are


connected to the 6.6KV unit boards
through unit auxiliary transformers and
feed 415-volt station loads. 415-volt
station auxiliary boards are connected
to 6.6KV station boards through station
auxiliary transformers and feed 415-volt
station loads. The emergency diesel
generator (EDG) is connected to the
415-volt EDG service board and pro-
vides an emergency source of 415-volt
power for essential services.
The following station auxiliary systems
are provided which do not participate
directly in the generating process but
are necessary for plant operation:
HVAC system
Firefighting system
Plant Waste water system
Plant sumps
Sustainability Report 2015 30
Sustainability Report 2015 31
Sustainability Report 2015 32
Sustainability Report 2015 33
Sustainability Report 2015 34
Sustainability Report 2015 35
Sustainability Report 2015 36

Key Figures

N46.3 1100 5.47 98%


Billion MWh Million Capacity test score
achieved for first
Outstanding
Debts Due To
Generation
milestone
MWh time in 12 years

Egbin achieved Total amount of power


generated in 2015
reporting year
Sustainability Report 2015 37

388 107 10 0
Total number Number of Community Amount of Spill
of staff in graduates trained in CSR Programmes incidents in
Egbin the Graduate Trainee implemented reporting year
Programme
Sustainability Report 2015 38

Sustainability Development Goals (SDG)


GOALS SPECIFIC PROJECT(s)

Alleviate Poverty in all its forms in Economic empowerment project in Ijede.


the community

Prevention of Malaria Outbreak in Upgrade of Community Health Center Facility


the community Montly Donation of Malaria prevention Drugs

Ensure Sustainable quality education for Establishment of Powerfield Group of Schools for Children
all ages Economic Empowerment Project in Ijede for boat technicians,
boat drivers, and tailors

Archieve Gender equality empowering 10% of total staff strength are females
females in the Industry Vocational Skill Training for Women in the Community
Management positions occupied by women

Ensure availibility and sustainable Provision of Boreholes and water handling faciliites within every
management of water for all communities surrounding community

Ensure access to affordable and clean Clean electricity production using Natural Gas
energy for all
Sustainability Report 2015 39

Promote Sustainable Economic growth and The overhaul projects on the Plant, provided employement for
productive employment indigenes of the local communities
Recruitment 33 young engineers, 15% being beneficiaries from
the local communities

Develop quality,reliable,sustainable Upgrade of Steam Turbine Control System to a digital Distributed


and resilient infrastructure, to support control system
economic development

Ensure access for staff to adequate, safe Donation of Communication equipments to Local Police station
and affordable housing and basic services Upgrade of recreational and hosuing facilities within housing
colony

Ensure sustainable management and Installation of water consumption totalizers


efficient use of natural resources

Integrate climate change measures into Establishment of Green Areas in the power station
company policies, strategies and planning Clean electricity production using Natural Gas

Prevent and significantly reduce marine Oil spill management training and awareness of staff member
pollution of all kinds. Installation of containment boom
Sustainability Report 2015 40

The Egbin
Sustainability Report

Committment to Sustainability Sustainability Across The Value Chain Business Approach Defining our Material Aspects
Sustainability Report 2015 41

Commitment to
Sustainability

A
s a power company, we at In this 2015 Bulk Electricity Trading PLC (NBET),
Egbin understand that we Nigerian Electricity Regulatory Commis-
have a tremendous role to
sustainability report sion (NERC), National Control Centre
play in the growth of the Ni- - being the maiden (NCC) and the System Operators - who
gerian economy. As studies have shown out of incredulity visited Egbin in No-
that the continuous increase in energy
edition, we focused on vember 2015 to perform a capacity test
consumption is quite consistent with significant and material on all six steam turbine units.
Gross Domestic Product (GDP). How-
ever the energy consumption in Nigeria
issues that outlines Having established such a well gov-
is increasing at a quicker rate than the Egbins commitment erned and sustainable system, our
GDP. Therefore, in view of the privatiza- credibility is not in doubt and have
tion of the power assets in Nigeria and
to sustainable proven that we can operate and sustain
our takeover of Egbin Power PLC, we development. all six units. It is worthy to note that
have started to meet the energy needs the operations and sustenance of all six
of our stakeholders and consequently units has for the first time after twelve

98%
have become the major power genera- (12) years come to effect, which has
tor to the national grid. resulted in a capacity test score of 98%.
In addition, we provided on an hourly
Our unwavering commitment to the basis an average of 200 Mega-Watt
sustainable development of Egbin may spinning reserve. In the same vein, our
be gauged from the fact that shortly
Capacity test score frequency responsiveness was also test-
after the takeover of the power as- achieved for the first ed by the West African Power Pool and
set from the Federal Government of time after 12 years was certified worthy in November 2015.
Nigeria, Egbin in collaboration with our
technical partner Korea Electric Power Even as we face several challenges in
Corporation (KEPCO) undertook the effective management tools in a system the Nigerian power industry in the cal-
major overhaul of three out of our six that was restructured by KPMG, and endar year 2015, from natural gas lim-
boilers, steam turbines and generators. also utilizing our redesigned mainte- itation to restricted power evacuation
In the course of the overhaul, corrective nance management system, we main- and many more, we nonetheless are
and preventive maintenance were also tained peak energy generation output undoubtedly committed to bring ener-
carried out, as old and defective parts for an extended period. This feat drew gy to life in Nigeria because we believe
were discard and replaced. the attention of millions of Nigerians that we have the capacity and are well
who experienced improved power sup- positioned to help grow the Nigerian
Consequently, having applied highly ply. Also impressed were the Nigerian economy with availability ofelectricity.
Sustainability Report 2015 42

Focus on Material Data Credibility


Subjects Accuracy of the data provided in this
Global
report is assured through internal Focus
In this 2015 sustainability report - being Data
Reporting Performance
Continual
reviews. Operational and performance on Material Goals &
the maiden edition, we focused on Subjects Credibility Initiative Improvement
data is validated by line management Charts
significant and material issues that (GRI)
reviewers, and prescribed data is
outlines Egbins commitment to sus-
subject to assessments and audits
tainable development and presents the
as part of Egbins commitment
environmental, social and economic
totransparency.
performance of our power generation
business activities in our facility, locality
and national economy. The focus of this Egbin is a major stakeholder in the with the intention for advancement and
Nigerian electricity market, therefore and high-level conclusions related
report is on the sustainability issues that sustainable development. Comments
Egbins sustainable development to performance. The graphs tend to
are most material to Egbins stakehold- and suggestions about this report are
data and practices are periodically summarize overall performance trends.
ers and the companys achievement of encouraged and may be sent to: The
verified by an independent auditor as Consistent with international standards,
strategic goals. These materials issues Egbin Power Plc Corporate Governance
part of industry regulations to ensure Egbin has established targets for
were formally identified in an assess- and Compliance Department Email:
information is accurate and credible. select parameters to measure and
ment undertaken by means of which corp.gov@egbin-power.com or the Eg-
Efforts are being made to ensure that monitor performance and drive
environmental, social and economic bin Stakeholders Platform: expressyour-
issues related to Egbin business were subsequent sustainability reports are continualimprovement. self@egbin-power.com
evaluated and ranked, based on their subjected to reviews by third-party and
impacts on the business and impor- independentassessors.
Continual Global Reporting
tance to stakeholders. Internal stake-
holders input was obtained through Furthermore, an audit of Egbins consol- Improvement Initiative
questionnaires and interview with senior idated financial statements by indepen- Bearing in mind that Egbins subse- The Global Reporting Initiatives fourth
Egbin operation and maintenance man- dent external auditors concluded the quent sustainability reports will be generational (GRI G4) principles and
agement leaders to identify and discuss statements present fairly the financial evaluated by independent third-party guidelines for the Core Option for
the issues they consider to be the most position of Egbin. The consolidated agents against criteria for best practic- sustainability reporting were employed
important to Egbins present and future financial statements and management es in sustainability reporting, hopefully as reference in the preparation of this
power generating operations. The views analysis can be accessed as by internal it will be ranked as having better than report. These guidelines provided the
of Egbins external stakeholders were and external stakeholders. average achievement. Recommenda- basis and configuration for the 2015
assessed by evaluating materials such tions from evaluations will be taken into Egbin sustainability report. This we
as survey and questionnaire results,
obtained from topics discussed at
Performance Goals account for succeeding sustainability
reports, and improvements will be made
hope makes the report analogous to
internationally acceptable sustainability
community meetings, environmental and Charts to identify Egbins key sustainability reports. Please refer to the Appendix
agencies priorities and requests for The graphs in this report provide a issues and to more explicitly review for a mapping of the Global Reporting
information submitted to Egbin. visual presentation of information stakeholder engagement framework, Initiative criteria to this reports content.
Sustainability Report 2015 43

Sustainability across
the value chain
Sustainability Report 2015 44

Business Approach
management system, thus increasing
International Operating Our determination to operate a our energy efficiency whilst decreasing
Standards sustainable business has propelled energyconsumption.

us to imbibe international operating

I Excellent Asset
n our quest to be the biggest power company in
Africa in terms of power assets value and gross
ideals which have now become our
installed capacity; we are committed to ensuring corporate culture and way of life Management
that international best practices are applied In the wake of the inefficiencies and
in all areas of our operations so as to guarantee the ineffectiveness of the operation and
sustainability of ourbusiness. maintenance systems, which was evi-
dent from the minimal energy supplied
To this end, our Quality Health Safety Security to the national grid, and low plant avail-
Environment (QHSSE), Plant Operations, Equipment ability and reliability prior to take over
Maintenance and Asset Management systems, have by new investors and management of
been designed to be consistent with global operating Egbin Power PLC, the new management
procedures and practices. team reorganized and restructured the
asset management system in order to
Our determination to operate a sustainable business has strengthen management capabilities,
propelled us to imbibe international operating ideals improve strategic utilization of manage-
which have now become our corporate culture and way ment resources and establish systems
of life. In promoting international standards in power to support efficient operations.
generation in 2015, we achieved remarkable safety
performance of zero fatality rate, extremely low emissions The foregoing resulted in the strategic
which are dimmed within internationally acceptable limits; implementation of structured business
increased safety awareness and trainings, increased processes and models for asset reliabil-
investment in employee healthcare, and an upgraded from our 1320 mega-watt power plant, ity and integrity needed to achieve long
emergency management system amongst others. 1.5% was an enormous energysaved. term sustainability.

In order to ensure that our business remains sustainable, Our energy performance improved As an organization that believes that
Egbin Power PLC embarked on an efficient energy tremendously because we leveraged our people the most valuable asset, our
performance drive. This was to reduce the energy wasted on international best practices to first area of focus is creating an envi-
at different points and terminals. This drive reduced our identify energy saving opportunities ronment where our people positively
internal energy usage from 7% to 5.5%. Considering the that are implementable in order to impact on reliability and asset integri-
sizable amount of energy, we generate on a daily basis maintain and improve our energy ty, improved team behaviour towards
Sustainability Report 2015 45

by applying project management Egbin Ownership Structure


and planning techniques for the
selection, scheduling and assignment
of maintenance jobs in order to reduce
downtime and increase plant efficiency
andreliability.

For assurance of a sustainable main-


24%
tenance system, the Maintenance
Planning Unit also identifies the rel- 70% 6%
evant management controls that are
required to guarantee plant integrity;
develop the details of the maintenance
process and ensure that an effective
maintenance process is established and
monitored. This is as it evaluates asset
maintenance management and inspec-
KERL BPE Ministry of
tion practises and techniques; identify,
Finance
define and critically review maintenance
Incorporate
The Unit Auxiliary Transformers and inspection strategies; and perform
optimisation of asset maintenance
and inspection strategy using relevant
error reduction and development of records and data.
We believe that our outstanding performance through well
people the most designed and implemented key perfor- Strong Financial
mance indicators (KPIs).
valuable asset, our first Performance
area of focus is creating The evaluation of the maintenance man- Following the bid exercise by the Fed-
agement system was carried out, whilst eral Government of Nigeria for the sale
an environment where the establishment of benchmarks, KPIs of the Government owned power as-
our people positively and other metrics used to drive perfor- sets, KEPCO Energy Resource Limited
mance development and improvement (KERL) emerged the preferred bidder
impact on reliability and were adopted. for Egbin Power PLC.
asset integrity,
Presently, the maintenance task delivery In line with the sale requirement, KERL
system has been optimized by the paid a total of $400 million for the
creation of the Maintenance Planning acquisition of the asset and took over
Unit, whose duty it is to coordinate the the management of the power plant in
plant maintenance management system November2013.
Sustainability Report 2015 46

KERL investment in Egbin Power Egbin Committments


PLC significantly changed the
ownership structure of the company
as highlighted below; Community investment during
the year
KERL - 70% Shareholding
Purchase of Raw materials, towards
ensuring Raw Materials smooth
BPE (Bureau of Public Enterprises) - Providers of Asset operations 80%
24% Shareholding Finance Maintenance
The Payment of employee
Ministry of Finance Incorporate 6% Employees
obligations 4%
Shareholding Obligation
The payment to the providers of
Considering the sub-optimal state finance 0.4%
of the plant, the company in its
Purchase of Raw The maintenance of assets during
sustainability drive increased its Materials
investment in the organization which the period 17%
culminated in a total capitalization of
Community investment during the
$1.061 billion (Equity and Debt) at the
year 0.2%
end of 2015 financial year.

The company has also through its


investments in renovations, plant
upgrade, maintenance and new asset
installations increased the Total Asset The payment to the providers of could impact on the rate at which the defined contribution pension scheme
of the plant to N211.35 billion ($1.608 finance 0.4% company continues its investment drive in accordance with the Pension Reform
billion) billion at the end of the The maintenance of assets during the towards achieving one of its goals of Act of 2004 of the Federal Republic
reporting period. period 17% being the biggest power company in of Nigeria and maintains its pension
Community investment during the year Africa in terms of asset value. obligations in line with the provisions of
0.2% the Act as amended in 2014.
Also during this reporting period, the
company earned revenue of about Loss for the period in review 1.5% Also in line with the companys
N51.7 billion ($259.5 million). This sustainability drive, upon takeover of
was utilized in settling its obligations Despite the increase in investments the management and operations has
towards its improved operations and strong earning, the company still adopted the International Financial
asfollows: faces the challenge of outstanding Reporting Standards (IFRS) which is
Purchase of Raw materials towards receivables in the region of $230 now being used in the presentation of
ensuring smooth operations 80% million during the reporting period. the companys financial statements.
The Payment of employee This receivables amount to about 87%
obligations 4% of the companys earning and as such The company has also adopted the The Newly Installed Steam Turbine 4 Digital Console
Sustainability Report 2015 47
Sustainability Report 2015 48

Defining our Material Aspects


Energy Conservation and Introduction of anti-corruption Compliance

100%
Program and enhancement of the whis-
Efficiency tle-blowing channel in 2016
Adoption of simple products (LED &
APPLIANCES)
Further extension of training on Code of
Energy saving bulbs has been installed in the entire
Energy Efficient Planned increase
in revenue in Ethics, Zero Tolerance of Corruption Plan and
plant facility to ensure adequate and reduced energy Implented energy
2020 Human Rights Policy in 2016
consumption. conservation processes
Photocells have been installed on all street lights to through the plant by

ensure reduced energy consumption during the day.


Use of energy saving devices such as office and
using energy efficient
appliances & LED
Financial Strength
home appliances, washing machines, fridges, freezers, Operational efficiency: Optimization of
TVs,etc. capital allocation and reduction of cash costs
To maximise efficiency and increase the value created
Installation of Complex Products by the company to the country, the organization is
embarking on expansion of its Generating Plant, with
The Digital Control System (DCS) has also been
a project called (Egbin II). The project will be financed
installed on some units in the power plant to ensure Installation of totalizers on the gas lines of each unit,
with equity and debt.
easier operation of the units, quicker troubleshooting to record the exact volume of gas consumed by each
for maintenance engineers, and increased efficiency of unit in 2016.
the manpower in local operation of the units Adoption of International Reporting
In 2015, the organization ensured strict adherence to
Modification of the organizations switching system to the use of one cooling water pump, boiler feed pump, Standards
enable the three station boards utilize available energy etc. on loads below 110mw to save power. The adoption of the International Financial Reporting
generated from the organization, rather than import- Standard (IFRS) in reporting the Annual Financial re-
ing energy from the grid by 2020. ports of the organization effective from take-over.
Purchase and installation of energy saving pumps for Sound Governance and Fair
the plant. Financial forecast of the company
Installation of solar cells to power station boards and Corporate Conduct
The organisation forecasts to increase its revenue by
black start by 2025. Constant alignment with international
100% by 2020.
recommendations and best practice on Egbin Power Plc. is presently operating at a gross
New Energy Efficiency Solutions governance margin of about 10% with an estimated gross margin
Installation of Digital metering system (DMS) in 2016 The adoption of the approved corporate governance of >25% by 2020.
to enable measurement of the quantity of energy framework in alignment with international recommen- The organization is working towards maximising its
imported and exported to the grid system dation and best practice on governance in 2016 operational net profit to >20% by 2020.
Sustainability Report 2015 49

Pioneer status
The Company will be filling for pioneer status in
2016, to earn a tax relief from the government. The
Companys future plan is to re-invest the savings
from Pioneer status in the Company, with the aim
of improving the economic benefits to the citizens.

Responsible Relations with


the Communities
Implementation of new projects for the
socio-economic development of the
communities
Vocational Trainings (Boat driving and repairs, Full scholarship award to students from the host communities Egbin Eye Care Programme
Soap and bead making) for empowerment of the
local communities
Constant supply of drugs to Ijede General Hospital
to reduce malaria outbreak in the local community
The constant supply of electricity from the power Definition of projects to
station (Egbin Power Plc.), which started in
2014, has been sustained, to improve the facility support the community
and reduce the cost of maintaining the General A scholarship scheme is scheduled to be implemented
Hospital at Ijede. in 2016 for local indigenes, to support students who
Installation of Bore Hole water supply, to improve are academically strong, in both the primary and sec-
availability of good water supply to the 3 ondary schools.

communities surrounding Egbin Power Plc.


Furnishing of Nigerian Police Force with Initiatives for the dissemination of a culture
Promotion of
communication equipments to improve security in ofenergy
Education for Cultural Values
the local communities The organization promotes the cultural values of the
Donation towards building project to expand Locals The organization country as well as the local communities, by encourag-
the police area command headquarters in Ijede Planned promotes the cultural ing smart cultural attires to be worn once a week.
by supporting the Police Community Relations implementation of values of the country as The organization also supports and encourages inclu-
Committee (PCRC) to embark on the project scholarship schemes well as the local com- sion of adheres to the traditional values as it relates to
Rehabilitation of School facility (Power field Group for local indigenes to munities through show- the organizations activities and business operations.
of Schools) to improve quality of education for the support their academic case of cultural heritage The organization pays regular visits to the traditional
localcommunities, endeavours and values rulers of the communities to solicit for their support
Skilled and Unskilled employment of local and peaceful co-existence thus promoting social and
communitysindigenes cultural inclusiveness.
Sustainability Report 2015 50

Employee Management
Development and Motivation
Standardization and simplification of
performance management process
A new performance management framework
was introduced in 2014 in order to promote a
performance-driven culture within the organization.
The performance cycle consists of the goal setting
exercise, a mid-year review and the end of year
performancereview.

In 2015, targeted efforts were made to eliminate com-


plexities and ensure better compliance through HR
Representatives, departmental meetings, email com-
munication and circulation of quick references and
relevant FAQs. Plans are being made to explore full
automation of the performance management process
for seamless documentation and reviews.

Dedicated initiatives for high potential staff


The organization understands the need to identify,
recognize, reward and keep motivating outstanding
performance of staff members, and as such is initi-
ating programs that will identify and develop high
potential staff. In addition, some quick wins have been
implemented e.g. Employee of the Month initiative to
keep every staff member motivated and outstanding.
Sustainability Report 2015 51

Training Programs Safety is top priority for the top


The organization is focused on capacity and capabil-
ity development and has developed several training management and championed
programs to upskill staff. In 2015, training programs by the MD.
were largely focused on the acquisition of basic skills
required to perform work. This covered soft skills
training (work productivity and management training)
and Computer proficiency (focus on use of MS Office
suite) in addition to the Technical training conduct-
ed in collaboration with Technical partners KEPCO
which covered classroom workshops and site visita-
tion to KEPCO Training Institute in South Korea. The
organization will also be introducing core functional
trainings based on identified skills gap of staff in
addition to aggressive hands-on knowledge transfer and human rights Employee Health and Safety
programs - coaching, mentoring, etc. in 2016. The Organizational Procurement Policy which will be Global approach to safety which is integrated
effected in 2016, will standardize vendors contractual
into the business
Responsible Supply Chain clauses. These clauses include: Warranty, Indemnity,
Confidentiality, House Keeping, Force Majeure, Termi-
Safety is top priority, for the top management and

Management nation and other clauses which are dependent on the



championed by the MD.
Production & implementation of occupational health
Strengthening of policies of correctness and nature of the job to be done.
and safety management manual
transparency along the supply chain Environmental audit report (Bi annual)
A procurement policy which has been drafted and re-
Enhancement and increasing integration
Post impact assessment (Required after oil spill
viewed by the management of the organization will be of sustainability factors in the qualification incidence)
submitted for the approval of the Board of Directors and in the performance assessment system Monthly submission of effluent discharge, air quality
in 2016, in alignment with the international procure- (vendor rating) for suppliers and noise level monitoring report to the regulating
ment best practices. In Addition to the policy and in agencies (LASEPA, NOSDRA & FED.MIN. ENV.).
The Organization in line with its sustainability initia-
line with internationally acceptable practices, a more tive, has incorporated a vendor rating process with a Monthly submission of Accident, incident & near miss
comprehensive and robust Vendor Registration and disciplinary policy, to ensure excellent service delivery report to NERC
Vendor Rating exercise will be conducted in 2016. at all times. Member British safety council
The Organizations guidelines will be strictly adhered The Organizations safety department has grouped
to in the vendor registration process, ensuring accidents into two major categories
Promotion of information-sharing and discus-
compliance with the Organizations Corporate Minor accidents
sion with suppliers
GovernanceGuidelines. Major accident (fatality)
The Supply Chain Management arm of the Procure-
ment department of the Organization will adopt an
Integration, strengthening and Focus on responsible conduct and a
annual Vendor feedback forum at the end of 2016. This
standardization of the contractual clauses on forum will encourage improvement in the process of preventative approach
issues such as the environment, health, safety dealing between the vendors and the Organization. Installation of Unsafe acts and Unsafe condition drop
Sustainability Report 2015 52

box, to report near misses, unsafe Global warming considerations


acts and unsafe conditions, for
According to the 2012 edition of
prompt attention.
National environmental protection
Daily routine checks / maintenance
(pollution abatement in industries and
Safety inductions / briefing to staffs
facilities generating waste) Regulation.
and contractors
The Organizations emission for NOx in
Job hazard analysis / risk assessment
2015 was <132ppm, against the environ-
Recent and major over haul of the
mental standard for Power Generating
firefighting system (Control Measure)
stations (NOx = 500ppm). The orga-
nization had a ZERO (g) record on Co
Dissemination and and So2, which are majorly harmful to
consolidation of the culture of the environment.
health and safety According to international world best
We encourage quarterly check-ups practices, it is stipulated that 30%
and health talks with employees to of the plant area must be of Green
improve their health status. Vegetation. Areas have been carved
Safety week conducted, intimated out as green area in the reporting year,
the employees on basic safety terms in view of more developments in the
at work and at home. This initiative comingyears.
had been suspended since 2012 due In the quest to ensure a safe and clean
to transition logistics. environment, the organization vents
In 2015, we introduced the monthly out oxygen during the production
health walk to improve the health ofhydrogen.
fitness of the employees, towards
combating high incidences of High Environmental
Blood Pressure (HBP) cases.
Compliance
Zero Spills of any Class
Efficient Use of Oil Spills classification is a set standard

Water Resources
by NOSDRA.
Minor (tier 1) 0 4000ltrs to inland wa-
Initiatives to ensure efficient
ters & 0 40000ltrs to land or coastal
use of water resources daily to ensure the organizations by2020 of off shore waters.
In 2015, totalizers were installed commitment to protecting the Installation of small turbine along Medium (tier 11) 4000 40000ltrs
on each unit to measure the water environmentsresources. the discharge canal to provide inland waters &40000 398000ltrs to
consumption of the units. Based Diversification into commercial sales of hydroelectric power in the near future. land or coastal or off shore,
on the age of the power plant, the
units operated (< 10tons/hr) on
portable water by (2020)
Diversification into sale of
Climate Strategy Major spill (tier 111) above 40000ltrs to
inland waters & above 398000ltrs to
normal operation. Checks are made demineralized water (electrolyte) and Landscaping land or coastal or offshore
Sustainability Report 2015 53

0
Zero Spill of
any Class
Sustainability Report 2015 54

The spill that occurred in our facility


was on 29th April 2015 and was
recovered to the volume of 800ltrs
which falls under minor (tier 1) spill

Awareness Program for


all staff of the company
Oil spill management training/
awareness
Daily routine checks
Standard operating procedure (SOP)
training for staffs
Standard work permit system
Safety induction for contractors
handling oil related equipment

Investment in Oil Spills


Management
Floating booms
Training course on oil spill management
for selected staff of the company.

Economic Material Aspects

Social Material Aspects

Environmental Material Aspects


Sustainability Report 2015 55

Materiality Graph

Environmental Spill Compliance

Financial Strength
Sound Governance and Fair Conduct
Responsible Supply-chain Management
Energy Conservation and Efficiency

90 Climate Strategy and Landscaping Security Terrorism and Cyber Security


Egbin Management

Employee Health & Safety

Employee Engagement

Responsible Relations with the


Communities Efficient Use of Water Resources

Energy Affordability/Prices
65
Employee Management,
Development and Motivation
Development of New Generating
Assets

Generation of Renewable Energy

40
40 65 90 115
External Stakeholders
Sustainability Report 2015 56

Business Priority Level

Business Priority Material Issues Objectives Risks

Business Performance and Energy conservation and Efficiency Increase in Generation capacity, Epileptic Gas supply and Grid Challenges
Sound Governance through extension of facility and im-
proved maintenance culture, extending
the operating life of generating assets.

Sound Governance and Fair corporate


conduct

Financial Strength Unfavourable Economic challenges


posed by the country

Development of new generating assets Operation of generating assets at max-


imum efficiency and reduced operating
cost

Energy affordability/Prices Illiquidity of the power market

Attain strong financial performance and


sound governance to ensure sustain-
ability

Standardized Working Responsible Relations with the Communi- Operation of generating assets in a
Condition and Social Re- ties safe and secure manner, ensuring zero
lations tolerance for accidents and minimized
injuries of employees, contractors and
Visitors.

Security, Terrorism and Cyber Security Adhering to International Procurement Non-compliance to organizations corpo-
Best Practices rate governance framework

Responsible supply Chain Management External Pressure from stakeholders


Sustainability Report 2015 57

Business Priority Level

Business Priority Material Issues Objectives Risks

Employee Management Development and Empower the workforce through Organisational inefficiency, due to loss of
Motivation well-defined organisational structure, talent and lack of motivation.
effective performance management
system, succession planning, reward
and recognition system, job enrich-
ment/career development opportuni-
ties, training and other forms of staff
development.

Employee Engagement Ensure a highly engaged workforce by Employee lethargy; lack of productivity
providing the right atmosphere and and innovation.
good working environment with team-
ing activities to promote respect for the
individual and allow for innovation.

Employee Health and Safety

Substantial Environmental Climate Strategy and Landscaping Ensure compliance of all legal and en- Non-compliance fees from environmental
and Climate Change Man- vironmental commitments expected of infractions
agement the organization

Environmental Spills Compliance Responsible and efficient exploitation Unfavourable Government policies
of environmental resources

Generation of Renewable Energy Green landscaping of our environment


in order to promote a sustainable cli-
mate.

Efficient use of Water Resources


Sustainability Report 2015 58

Economic Sustainability

Business Sustainability Plant Availability Project Investments Supply Chain


& Reliability Management
Sustainability Report 2015 59

Business Sustainability

P
ower is the key driver of any
economy, more importantly,
it is necessary to improve
the economic outlook of the
Nigerian economy. This is because it
boosts gross domestic product (GDP),
provides key inputs for most industries
and supplies the basic needs for the
residential sector. The power sector
in which Egbin Power PLC operates
must be financially sustainable, as
its long term financial sustainability
relies on the assessment of factors
that directly impact on the overall
cost of production of electricity, which
will invariably determine the ability
for power companies like Egbin to
make investments in response to the
geometric increase in the demand
forelectricity.

In 2007, The Sahara Group, through


a special purpose vehicle KEPCO
Energy Resource Limited (KERL)
acquired an initial 51% of Egbin
Power PLC. Subsequently during the
completion of the privatization process
of the power sector, following agreed
terms with the Federal Government,
it acquired an additional 19% in 2013
to bring to 70% its total shareholding
in Egbin Power Plc in 2013.The asset
was officially handed over to KERL in
November 2013 by the Bureau of Public
Sustainability Report 2015 60

Enterprises (BPE) as part of the Federal is responsible for the allocation of Key Economic
Government power sector privatization. electricity to the different states of the
federation with respect in line with set
Performance Figures
In line with the vision for sustainable parameters determined by the Center
operations of the plant upon takeover, which , includes available grid power,
KERL entered into a technical services population, state load capacity etc.
agreement with the Korea Electric
Power Corporation (KEPCO). The con- In order to ensure that Egbin manag-
tract in November 2013 and will run till es and operates a financially viable
October 2018.

The agreement provided for KEPCO to


business, management intends to
increase its generation capacity, con-
tinuously meet electricity demands, 5.47MWh
Million
N211.35
manage fourteen sections/units which
make up Operations, Maintenance and
recover costs, make investments and
comply with environmental and so-
Total amount of energy generated Billion
in reporting year of 2015 ($1.061 Billion)
Maintenance Support departments. For cialnorms.
effective coordination, a plant director Total capitalization rate in
reporting to the CEO is responsible
for the supervision of plant operations
Economic Value and equity and debt at the end
of 2015 financial year.
activities. Performance
Having generated 5.47 million MWh
Being the largest single generator as total energy and wheeled out 5.148
of power to the Nigerian national million MWh of energy to the national

5.148 MWh
electricity grid, Egbins financial grid in 2015, the net revenue accrued
Million
sustainability is not only important to Egbin Power PLC in the reporting and its auxiliaries; guaranteeing life
to the sustainable development of year of 2015 was N51.7 billion ($259.5 extension of the thirty-year-old plant;
the company, but also critical to the million). Total amount of energy fed to ensuring long term profitability and
economic growth and development the national grid sustainability; and the funding of a
of Nigeria and its neighboring states. Egbin strategically coordinated huge new power plant.
This is because Egbin generates power investments in total capitalization
of 1320MW that serves the Nigerian rate of N211.35 billion ($1.061 billion) in Accordingly, the plan to construct a
electricity market whose grid capacity equity and debt as at the end of 2015 second power plant known as Egbin
is less than 6000MW, and is consumed financial year. The share capital was 2, on the same site with the existing
by residential, commercial and industrial increased from N5 million ($25,100) to

N46.3Billion
plant was set in motion in the report-
customers. Invariably, N10 million ($50,200) in March 2015, ing year 2015. The feasibility studies
by increasing the nominal values of and environmental impact assessment
Egbin generates nearly one quarter of the shares from 50 kobo ($0.005) to of the 1350 Megawatt combined cycle
Outstanding debts due to
the power in the national grid which is N1 ($0.01) per share. The investments power plant have been carried out.
Egbin
tightly controlled by the National Con- were directed at optimizing the per- At completion, the plant which will
trol Centre. The National Control Centre formance of all six steam turbine units cost about $1.8 billion will make Egbin
Sustainability Report 2015 61

Our desire to remain Our Stakeholders


competitive in the
Suppliers
Nigerian energy market
continues to drive us as
an organization to be
financially sustainable. Fountain
Nigerian Petro-
Korea Electric Insurance Chevron Nigeria
leum Development
Power Corporation Limited (CNL)
Company Limited
(KEPCO)
(NPDC)

Pan Ocean Oil


Nigerian Gas PEDABO KPMG Professional
Corporation
Company Limited Associates Service
Nigeria (POOC)
(NGC)

Power PLC retain the largest mar-


ket share with the supply of 2670
Megawatt of power to the Nigerian
electricity market.

Our desire to remain competitive in


MARUBENI
the Nigerian energy market contin-
ues to drive us as an organization
Hitachi
to be financially sustainable. There-
fore, we ensure that our systems
are constantly updated to enable
stakeholders value creation and
continual repositioning of the busi-
ness strategy to provide value for
the Nigerian electricity consumers
and the populous at large.
Sustainability Report 2015 62

Suppliers efficiently, effectively and sustainably


Civil society (Regulators) in order to ensure that we generate
Nigerian Electricity Regulatory enough power to the National Grid. This
Commission (NERC) is considering the fact that Egbin Power
GENCO Association of Nigeria. PLC is the largest power generating
Federal Ministry of Power plant in the country.

Customers Improved Plant


Nigeria Bulk Electricity Trader &
Market Operator
Efficiency
The turbine system is as complex as
Ikeja Electric
the boiler system and there are several
EKO DISCO
points where efficiency could be lost.
Studies have shown that some of the
areas where losses are bound to occur
Employees, other workers, trade are the turbine bucket tip and packing
unions leakage which can constitute 40% of
total efficiency loss within the turbine.
Employees
Turbine nozzle roughness and erosion
Workers Union
can account for 35% of efficiency loss,
whilst turbine deposits 15%, and bucket
Local communities erosion and roughness 10%. In addition,
Egbin the steam turbine is part of a larger
efficiency on a daily basis whilst compil- excess oxygen level in the furnace.
Ijede steam and water system that involves
ing a monthly performance report.
Ipakan. condenser, feedwater heaters, deaer-
Similarly, the gas air heaters that pre-
ator, pumps and piping all of which
In achieving and sustaining the heat the combustion air required to
Shareholders and provider of have their individual efficiency loss.
efficiency of the Egbin power plant mix with fuel and heat source in the
capital whose design value is 36.83%, we boiler (furnace) to produce flame, were
The efficiency of the Egbin power plant
KEPCO Energy Resource Limited operate in conformance with the revamped for improved functionality.
was not empirically determined with a
Bureau of Public Enterprises (BPE) standard operating procedures so that Preheating combustion air with flue
view to improve the power generation
Ministry of Finance the design values stipulated by the gases heading to the stacks from the
process in order to positively impact
original equipment manufacturer (OEM) boiler, increases overall plant efficiency.
the revenue income of the company,
in the performance guarantee of the
T hough we have identified our stake- prior to the privatization of the Pow-
plants closed cycle may be achieved. The sustainability of our power gen-
holders above, it is important to note er Holding Company of Nigeria. The
Also, we reduced sensible heat losses eration business is dependent on fuel
that as a power generation company, advent of KEPCO Energy Resource Lim-
by fine-tuning combustion controls availability which currently cost $3.30
the Nigerian public are also a major ited (KERL) management of the Egbin
so as to allow accurate quantity of per million cubic feet. The quality of
stakeholder in our business as they power plant, brought about deliberate
excess air required in the furnace for the natural gas fuel, as provided by
depend on the company to be run design of systems to monitor the plant
combustion, thereby reducing the the design values of the generation
Sustainability Report 2015 63

In achieving and
Plant Availability
and other combustible components
proportions or the higher concentra-
sustaining the efficiency tion of non-combustible components
of the Egbin power like nitrogen, CO2, moisture etc., which
may perhaps sum up to reduce the net
and Reliability
plant, we operate in efficiency of the plant. Therefore, efforts
conformance with the were made in the reporting year 2015,
to consistently perform analysis on the
standard operating natural gas fuel pumped by the Nigeri- Power Generation

E
procedures so that the an Gas Company to our facility, in order
gbin operates a six steam turbine unit facility. In Feb-
to ascertain the calorific value of the
design values stipulated natural gas fuel burnt in our boilers for
ruary 2015, steam turbine (ST) 5 was shut down due
to challenges with its power transformer. As a result,
by the OEM in the maximum efficiency.
the ST 5 generated10,820MWh compared with ST 1
performance guarantee to 6 that generated 191,076MWh, 318,227MWh, 190,756MWh,
124,960MWh and 43,973MWh respectively in the first quarter
of the plants closed of 2015.
cycle may be achieved.
At the commencement of quarter 2 of 2015 financial year, , ST
6 was also shut down for planned maintenance of the boiler
tubes. Consequently, this amounted to the generation of 1.74
million MWh of energy from all six steam turbine units by the
end of the quarter..
plant, should be 88.18% methane, 5.25%
ethane, 1.91% propane, 0.15% nitrogen, Despite the limitation of gas by the Nigerian Gas Company,
3.80% carbon (iv) oxide. the end of quarter 3 of the 2015 financial year saw an in-
crease in energy generated of 3.5 million MWh. By the end of
Fuel quality and availability has a ma- the year, Egbin had wheeled 5.18 million MWh to the grid for
jor effect on our business, as natural millions of residential, commercial and industrial consumers.
gas fuel with high heating value, high
carbon to hydrogen ratios, and low The power generated by Egbin is traded in the energy market
moisture content can yield efficiency which is tightly controlled and regulated by the Nigerian
which are much higher than natural gas Electricity Regulatory Commission. The process starts up-
fuel that have low heating values, low stream with generating companies like Egbin, who then trade
carbon to hydrogen ratios, and high power with the Transmission Company of Nigeria (TCN) for
moisture content. further distribution to the power distribution companies, who
the trade the power to end users/consumers .
The loss of heat energy during combus-
tion as result of low fuel quality - may TCN consists of the Transmission Service Providers (TSP), the
be due to a lower methane, ethane System Operator (SO) and the Market Operator (MO). These
Sustainability Report 2015 64

Despite the limitation of gas by the Nigerian


Gas Company, the end of quarter 3 of the
80.00
2015 financial year saw an increase in energy
70.00
generated of 3.5million MWh.
60.00

50.00

40.00

30.00

20.00

10.00

-
1 2 3 4 5 6

Operation Availability(%) OF STEAM TURBINES 1 TO 6 in 2015

three semi-autonomous bodies are company and the Market Operator, a


responsible for the maintenance of the final settlement statement is forwarded
transmission equipment; the operations to Egbin by the Market Operator. The
of the national power system; and the final settlement statement received from
trading of power from generation com- the market operator is thence acknowl-
panies like Egbin to distribution compa- edged by our finance and account
nies, in collaboration with the Nigerian department in towards the preparation
Bulk Electricity Trading Plc. of an invoice that is sent to the Nigeri-
an Bulk Electricity Trading PLC for the
In order to trade the power generated, payment of power generated.
a preliminary settlement statement is
prepared by the Market Operator upon The need to maintain discipline in the
receipt of Egbins energy meter reading. national grid to ensure sufficiency in
the distribution of power is impera-
After checks and verification by the tive to the sustainability of the power
Sustainability Report 2015 65

business in Nigeria. Thus, calls


by the National Control Centre
Reliability
Our reliability is in the ability of OPERATION AVAILABILITY (%) OF
(System Operator) instructing
the steam turbines to generate
Egbin operations engineers to
power whilst facing various
STEAM TURBINE 1 IN 2015
drop huge amount of load within
challenges during a specified
a short period is detrimental
period of time. 100.00
to the design life of our steam
turbines. There are tendencies of
During the reporting year of
negative impacts on our gener- 90.00
2015, operating values show that
ating equipment as a result of
the minimum average operation
thermal stress that may accu- 80.00
availability as illustrated by the
mulate over an extended period
graph above was 21.96% and the
of time because of improper
load decrease. Grid indiscipline, maximum 75.10% registered for 70.00

inactive power purchasing units 1 and 2 respectively.


agreement (PPAs) and others 60.00

are some of the challenges that Steam turbine unit 1 had the
pose as threats to the effective lowest operation availability
50.00
delivery of power to consumers. in the reporting year. The
These issues are however being minimal value recorded was as
resolved by the relevant govern- a result of scheduled downtime 40.00

ment agencies, the industry reg- in August 2015 for major


ulator and the Federal Ministry overhaul and forced shutdown 30.00
of Power, Works and Housing. in October through December
due to technical issues with
the generator transformer. 20.00

Plant The graph below depicts the


Performance operation availability of steam 10.00

The improved reliability of the turbine unit 1 as the lowest


Egbin six steam turbine units contributor of energy generated
-
may be attributed to the drive during the reportingyear.

MARCH

APRIL

MAY

AUGUST
JUNE

JULY

NOVEMBER
FEBRUARY
JANUARY

OCTOBER

DECEMBER
SEPTEMBER
by its new management to
increase availability and perfor- However, with reference to the
mance of the plant. The avail- operation availability graph
ability of the power plant is a of steam turbines units 1 to 6,
function of its operating hours steam turbine unit 2 (ST2) had
irrespective of the causes for the highest average operation
shut down, whether planned availability at 75.10% in 2015,
shutdown, forced shutdown or thereby supplying most of the
gas limitation. total energy generated.
Sustainability Report 2015 66

Availability

OPERATION AVAILABILITY (%) OF


STEAM TURBINE 2 IN 2015

120

100

80

60

40
This represents the time in which steam turbines are capa-
ble of generating electricity as a percentage of the aggre-
gate time for a particular period. 20

The ST2 in 2015 generated 1,430,709 MWh energy, wheeled


0
out 1,360,360.90MWh, consumed 70,348MWh (5.16% of
energy generated), operated for 8,327 hours, and had
operation and maintenance availability of 99.73%.

The major justification for the high performance of ST2


was because natural gas fuel was available at the required
pressure needed to power the boiler to generate steam for
the turbines, over an extended period from July to Decem-
ber2015. In November and December, the gas
pressure received from NGC increased
Financial Status
Although, in October 2015 as presented in the graph for which in turn increased our energy out- During the period of reporting of the
operation availability of steam turbine unit 2 in 2015, ST2 had put. Needless to say, the pressure of the sustainability report, the company
a dip, this was due to low natural gas pressure received from natural gas flow from NGC is critical to realized revenue of about N52.337
the Nigerian Gas Company (NGC). our operations and energy output. billion and this was utilized in settling
Sustainability Report 2015 67

its obligations towards its improved Table 1: Summary of Financial


operations as follows:
Purchase of Raw materials towards
ensuring smooth operations 80%
The Payment of employee
obligations 4%
The payment to the providers of
finance 0.4%
The maintenance of assets during
the period 17%
Community investment during the
year 0.2% Revenue Operational Expenses Margin/(Loss) Admin Expenses Profit/(Loss) before Tax
Loss for the period in review 1.5% (N m) (N m) (N m) (N m) (N m)

Despite the companys improved


financial performance during the
reporting year, we are still faced with
challenges in the collections of its
receivables for power sold to the grid. 2013 8,120 (6,436) 1,684 (314) 1,370

For the period of reporting, the


company has outstanding receivables
yet to be collected of about $230 2014 43,451 (36,811) 6,640 (1,542) 5,098
million. However, we believe that
it would not impact greatly on our
sustainability in the long run, as
we are continually consulting with 2015 51,700 (52,500) (800) (2,400) (3,200)
the government who are the major
debtors on ways to ensure payment.
Sustainability Report 2015 68

Abridged Statement of Financial Position as at 31st Oct. 2015

All Figures in (NMillion) Market Operator / NEET - 44, 194

AES - 1,792

National Control Centre (NCC) - 239

Bureau of Public Enterprise (BPE) - 13

Others - 29

Prepayment 34 Advances to Vendors


Receivables & Staff - 34

46, 267 Cash & Bank


2,872 Bank & Cash - 597

Fixed Deposit - 2,275

Payables
Non-Current Assets 28,945
Technical service, Operation & Maintenance - 13,434
187, 518
GAS - 13,426

Short Term Borrowing - 1,303

Others (Accruals and other payables) - 782

Net Asset: 207, 746


Sustainability Report 2015 69

Table 2: Statement of Value Added


Project Investments
31-Dec-15

A
N Billion t the time of takeover, the equipment in the state of disrepair that
power plant was operating needed to be replaced. Other chal-
Revenue 51.7 at less than 50% capacity lenges faced as a result of takeover,
and the steam turbine unit were the alarming number of the aging
Brought in materials and services
6 (ST-6) had not been operational for workforce-approaching retirement- and
- Imported (26.8) over 8 years. Despite the extensive a poorly secured environment for a mo-
regulatory challenges that the com- mentous power generation business.
- Local (14.5) pany faced, KERL have been able to The Power plant was saddled with an
improve the operation of the plant and excess of over 800 employees that per-
Value Added 10.4 assets satisfactorily, investing substan- formed their duties in an administrative
tially in the plant since take over. The building that was in a deplorable state,
Distributed as follows:
power plant operated at over 85% of very dingy environment which made
To pay employees its installed capacity in 2015 with the it difficult to work in. Additionally, the
revamp of ST-6. estate/staff housing complex and club
Staff cost 2.1 house where members of staff were

Status Upon supposed to unwind after a working


day was completely inoperable.
To pay providers of finance Takeover
Finance cost 0.2
November 2013 Investments in First
Prior to the privatization of the plant
in November 2013, Egbin power
Year of Takeover
plant average generation was below 2014
Maintenance of assets and future expansion 500-MW, this was due to the dismal The renovation of the administrative
state of its six steam turbine units. At complex to a world class work environ-
Depreciation 8.8 its lowest point, only two of the six ment was among our top priorities, as
units were operational; most of the we had to improve the working con-
Loss for the period (0.8)
auxiliaries were not functional; major ditions to that which is internationally
Deferred tax - spares necessary for plant operation acceptable and appealing.
and for preventive maintenance
Community Investment 0.1 were unavailable and materials in Whilst renovating our administrative
the Central Store were poorly kept, building, in our first year managing
managed andcatalogued. Egbin Power Plc, we successfully re-
stored steam turbine unit 6 which had
Value Added 10.4
Also, there were old and obsolete been down and un-operational nearly a
Sustainability Report 2015 70

To guarantee the
sustainability of our
business operation,
major spare parts have
been identified and
ordered to avoid long
term shut down of the
steam turbine units
due to unscheduled
downtime

Unit 4 Genertor Rotor During Major Overhaul

107
decade. This was a strategic action that gramme at the National Power Training operation and maintenance of a thermal
was critical to the overall increase in the Institute of Nigeria for about a year, power plant. We hope that the in the
company revenues. where they acquired the foundational near future, the newly recruited young
skills required to function effectively in and vibrant engineers of the company
Graduate Engineers Considering the aging workforce that the power sector generally and power would replace the aging population of
we met at takeover, the management of generation particularly. the employees.
Trained the company in collaboration with Ikeja
Electric embarked on the recruitment Of the 107 trainee engineers recruited, In a bid to guarantee the sustainability
To boost the technical human and training of 107 Nigerian graduate a total of 33 were fully absorbed by of our business operation, major spare
capacity, Egbin embarked on engineers. These young engineers, who the company and are still undergoing parts have been identified and ordered
training and recruitment of 107 were fresh graduates from the univer- more practical and comprehensive to avoid long term shut down of the
Nigerian Graduate engineers, 33 sities, were first trained in the National training program for an additional year steam turbine units due to unscheduled
of whom were fully absorbed Graduate Skills Development Pro- to acquire more advance skills in the downtime. Also, materials and equip-
Sustainability Report 2015 71

New Office Setting


Sustainability Report 2015 72

ment have been properly catalogued in


the central store, to ease procurement,
storage and usage.

10 10 10 10
Furthermore, there was a major over- 10 10 10 10 10 10 10 10 10 10 10 10
9 9 9 9 9 9
haul of the demineralization plant which 9
9 8
resulted in the recovering of Train B. 8 8
7 7
Bearing in mind that the demineral- 7 7 7
7 7
ization plant is a critical component of 7 7 6 7
6 6
6 6 6 6 6 6
our power generation system because 6 6
it eliminates impurities and minerals 5 5
5
from the boiler water, Egbin embarked
4
on a refurbishment program to service 4 4 4 4
4 4 4
4 3 3 4
and replace metering pumps, transfer 3 3 3 3
pumps, recycle pumps, inner com- 3 3
3 2
ponents of vessels and valves. Other 2
activities that were carried out in the
demineralization plant were the removal
of the old and low capacity Amber-
liteTM ion exchange resins to brand
13

-13

-14

14

14

-14

-14

-14

14

-14

14

-14

14

-14

-15

15

15

-15

-15

-15

15

-15

15

-15
V-

B-

R-

L-

P-
B-

R-

L-

P-

V-

CT
AY
CT
AY
EC

PR

UG
EC
N

PR

UG
new Lewatit resins. We also serviced

JU
JU
O

SE
FE
O

A
SE
FE

JA

JU
JA

JU

O
M
O
M
D

A
A

D
N

A
M

N
the distribution pipes, replaced salen
clothes and wire meshes, all in the ef-
fort to bring the demineralization plant
to full capacity to produce boiler water Potential Revenue=N=bn Projected Revenue=N=bn Actual Revenue=N=bn
at varying plant loads.

Investments in
Second Year of continued from April to June 2015 and The total overhaul of three out of the tributed Control System (DCS) which
Takeover 2015 July to August 2015 for steam turbine six steam turbine units in Egbin Power utilizes the most advanced control
In our second year of takeover which units 5 and 1 respectively. Consequent- Plant involved the replacement of the technology to provide a powerful and
is the reporting year of this sustain- ly, the overhauled steam turbine units Turbine Vibration Monitoring Systems secure architecture while allowing our
ability report, the total overhaul of were capable to peak at 220 Megawatt - which assists in regulating the speed system to easily progress with rapidly
steam turbine units 4, 5 and 1 in that each at its installed capacity. This was of the turbine in the event of vibration advancing computer technologies.
order was carried out. The overhaul unprecedented as the plant had never to avoid a catastrophic failure, and the
commenced with steam turbine unit undergone any major overhaul of this upgrade of the plant process control The company also replaced and
4 in the fourth quarter of 2014. This kind in its thirty years of operation. system to the Emerson Ovation Dis- repaired essential parts of the plant
Sustainability Report 2015 73

such as re-tubing of the boilers, high


pressure heaters, Uninterrupted Power
Supply System (UPS), Excitation/
AVR system, Protection PNL and
Switchgears.

The implementation of risk


management measures propelled the
company to retrofit the plant with an
advanced Fire Alarm Detection System.
This is to ensure the safety of personnel
and equipment in the event of a
fireoutbreak.

Also, the installation of gas meters to


accurately measure the quantity of gas
received from the Nigerian Gas Compa-
ny (NGC) commenced. The installation
of energy meters to correctly read the
energy exported to the national grid
was also initiated.

In view of our sustainability attitude


to continuously drive efficiency, Egbin
introduced Enterprise Resource Plan-
ning software packages in maintenance
management and financial manage-
ment - Computerized Maintenance
Management System (CMMS) and
SAGE, to improve operational perfor-
mance and efficiency.

Current Operating
Status
Prior to takeover, Egbin had not
achieved 50% of its generating ca-
pacity. Over the life span of the plant,
the average generation had been
Sustainability Report 2015 74

maintained at about 550MW and had


never managed to generate at any time
during its existence 1000MW. However,
with the successful restoration of ST-6
5.8 5.8
and the overhaul of the power plant-
5.4
halfway complete-there was an increase
of 100% in generation in comparison to 5.1
the periods before takeover. This result-
4.3
ed in the current average generation
4.0 4.1 4.1
rising to about 1,000 Megawatt and a 3.9 3.8
3.8 3.7
3.6 3.6
drastic decrease in unscheduled down- 3.5 3.5 3.5
3.3 3.2
time. The completion of the overhauls 3.2 3.1

in the succeeding year 2016 will enable 2.8 2.8 2.8


2.7
2.5 2.5
the power plant operate at a minimum 2.3 2.3
of 92% of its capacity.. 2.1 2.1 2.0
1.9 1.9
1.8 1.8
1.7 1.6 1.7
1.5
1.3 1.4
1.1 1.2 1.2

Investments Plans 0.8


0.3
for Third Year of
Takeover - 2016
13

-13

-14

14

14

-14

-14

-14

14

-14

14

-14

14

-14

-15

15

15

-15

-15

-15

15

-15

15

-15
V-

B-

R-

L-

P-
B-

R-

L-

P-

V-

CT
AY
CT
EC

AY

PR

UG
EC
N

PR

UG

JU
JU
O

SE
FE

A
SE

O
FE

JA

JU
JA

JU

O
M
O
M
D

A
A

D
N

A
M

N
As part our continued desire to ensure
sustainability, the company will embark
on further investments towards over-
hauling and upgrading of steam turbine Revenue=N=bn Cash Inflow=N=bn CBN=N=bn
units 2, 3 and 6 in year 2016. The com-
pletion of the overhaul plan in 2016 will
precede the next scheduled overhaul
in2019.

In addition, the ensuing are plans that


Preliminary feasibility and design to consumptions all illegitimate occupants (retired and
will materialize in the year 2016.
kick off the process for the building Installation of Solar panels to power the non-members of staff) in the housing
Extension of the current employee
of a new 1,350-MW Combined Cycle employee residences. colony premises as part of our security
residences to accommodate more
Power Plant towards increasing the Expand the scope of electronic security measure
employees and the relocation of
other employees to more decent plantscapacity. in the facility.
accommodation. The purchase of additional Gas turbine Increase in Corporate Social Respon-
Construction of perimeter fencing to and three Emergency Diesel Genera- sibility to improve host community
safe guard the facilities. tors (EDG) for black start and internal and mitigate restiveness. Eviction of
Sustainability Report 2015 75

Supply Chain Management

Growth of Local
Economy

T
he power generation busi-
ness is one that continuously
requires financial investments
to improve social, economic
and environmental performance. The
sustenance of electricity production
operations is hinged on an effective
and efficient supply chain management
system.

The procurement of human and mate-


rial resources to support the activities
carried out at Egbin in the reporting
year 2015 resulted in the development
of the local economy. In 2015, Egbin
Power Plc declared N 10.5 billion as
value added. The components of the
value added were the total revenues
for the financial year; materials were
sourced locally and internationally, staff
cost, finance cost, and maintenance of
assets, although the financial resources
allocated for materials that were im-
ported into Nigeria was higher than the
value sourced from the local economy.
This is because some of the critical
and high precision equipment are not
manufactured in Nigeria, thus the high
importation rate.
Sustainability Report 2015 76

Nevertheless, the local economy bene-


Since it has become of all stakeholders which includes sup- Egbins business principles set out and
fitted tremendously as N 14.5 billion was pliers, through the creation of wealth establish our core beliefs and be-
spent by Egbin to source for materials increasingly recognized and safety, our companys business haviours that guide the way that the
and services from Nigerian companies that Egbin should principles, corporate governance poli- company and its employees conduct
and the Nigerian market. Additional- cies and code of ethics are binding on business. We do not compromise on the
ly, during the overhaul of the steam be managed more all suppliers and contractors. companys performance and principles.
turbine units 1, 4 and 5, the over 375 sustainably to reflect Thus, as a fundamental standard of Eg-
temporary work-force was sourced In order to ensure a corrupt and fraud bins procurement practice, we employ
from the local communities (Egbin, the interests of all free supply chain management system, the principles of cost-effectiveness,
Ijede and Ipakan) around the location of stakeholders which the Egbin anti-corruption and anti-brib- correctness, and competition. These are
Egbin Power Plant. These local commu- ery, third party solicitation and whistle elements of Egbins Business Princi-
nities were also developed economically includes suppliers, blowing policies were established to ples People, Conduct, Society and
due to the fact that over 95% of our through the creation of forestall the risks of financial induce- Environment.
employees reside in these communities ment that may occur when dealing with
and purchase their goods and services wealth and safety, our external stakeholders.
from the local vendors. This has helped companys business
stimulate the local economy and there-
fore led to the creation of more jobs to
principles, corporate Egbin Suppliers
satisfy the high purchasing power of governance policies
our employees. Consultants - 4
and code of ethics are Distributors - 7
Procurement binding on all suppliers Manufacturers - 3
and contractors. Freight 5
Practices
The Egbin supply chain management
system (SCM) which starts with the
supplier and ends with us as the con-
sumer, is designed to guarantee the
source for human and material resourc-
es required to operate a sustainable constituted of;
power generation business. Though we Contractors 241
always endeavour to patronize local Freight 5
contractors and vendors, our SCM en- Consultants - 4
sures that only capable and competent Distributors -7
contractors with track records of im- Manufacturers -3
peccable quality are registered with us
during our Vendor Registration Process. Since it has become increasingly rec- Contractors - 241
Therefore, Egbin have vetted a total ognized that Egbin should be managed
number of 260 suppliers. This number is more sustainably to reflect the interests
Sustainability Report 2015 77

Egbin Business Principles

People
We provide healthy, safe and secure work environment
We treat people with fairness, respect and decency
We help employees to develop their potentials

Conduct Society
We act with integrity, accountability and transparency We work to ensure that neighbouring communities
We provide healthy, safe and secure work environment benefit from our presence on an enduring basis
We help employees to develop their potentials We support human right within our areas of influence.
We ensure people in our business communities
have value enhancing services

Environment
We make a positive contribution to the protection of the environment
We go beyond compliance with local environment regulations to meet
internationally acceptable best practice
We work to mitigate the adverse effect of our operations
on the environment
Sustainability Report 2015 78

Environmental Sustainability

Environmental Compliance with Power Generation & Conservation of Management of Resource


Management Systems Enviromental Laws Climate Change Biodiversity Waste Utilization
Sustainability Report 2015 79

Environmental Management
Systems

A
s the world population rises The environmental management prin- to attain certification, Egbin produced Our environmental
above seven billion, the ciples employed by Egbin to ensure its new operational OHSAS manual in
performance is
demand for energy and the the sustainability of the environment, June 2015 in accordance with ISO 18001
natural resources from our is consistent with the provisions of the and ISO 14001 and continued with its assessed from the
environment has risen proportionate- Occupational Health and Safety Man- implementation program to obtain
management level
ly. The corresponding demand for the agement Systems (OHSAS) 18001. the internationally acceptable safety
resources that mother nature has to standard accreditation ISO 18000 by down to operational
offer, has put tremendous pressure on In the era when the Federal September 2016.
or task level. Thus, we
the environment, thereby threatening Government of Nigeria solely
the possibility of future generations to owned Egbin - known then as Furthermore, considering the fact that have evolved into a
sustain their existence from the same Power Holding Company of Nigeria we have newly established systems
compliant system
source of natural supply. (PHCN), the systems to ensure that that will guarantee the sustainable
the environment was preserved generation of power from the available
For that reason, the need to pay and conserved were established resources within the environment, there
conscious attention to the call by and implemented, but the quest to is a designed roadmap to achieve the
nature to preserve and conserve obtain international certifications for ISO 14001 certification for environmen-
the environment cannot be environmental management system tal management system (EMS) in 2017.
compliant system, thus, ensuring that
overemphasized. Therefore, we at - ISO 14001 were not initiated. In the
activities are performed in accordance
Egbin Power PLC (Egbin) have imbibed reporting year, Egbin specifically Fundamentally, our roadmap to achiev-
with regulations by the Lagos State
the corporate culture of environmental operated an Occupational Health and ing the ISO 14001 shows that we will
Environmental Protection Agency
preservation and conservation Safety Management System manual commence the production of the EMS
embedded in our modes of operation that is a requisite for the OHSAS (LASEPA), National Oil Spill Detection
operation manual by August 2016,
and standard operatingprocedures. 18001 certification also known as maintain its implementation and there- and Response Agency (NOSDRA),
ISO 18001. Presently, Egbin have not after apply for ISO 14001 certification, Federal Ministry of Environment and the
been certified the ISO 18001 (OHSAS which should involve a comprehensive British Safety Council. The institution
18001) and ISO 14001 which are the audit of our environmental manage- of our yet to be certified environmental
International Standard Organizations ment system. management system continues to
(ISO) Occupational Health and Safety guarantee that the environmental risks
Management System (OHSMS) and Our environmental performance inherent in our activities are addressed
Environmental Management System is assessed from the management and controlled in a manner that is
(EMS) certifications respectively. level down to operational or task consistent with Egbins environmental
However, in line with our commitment level. Thus, we have evolved into a policies and commitmentstatements.
Sustainability Report 2015 80

Main Environmental

Egbin Performance Objectives


Issues
The positive and negative impacts we
have on the environment as a result of Zero Incidence
our power generating operations are
largely addressed by our environmental
management system.

Though we are a power company that


operates a steam power plant that
depend on water resources in order to Minimize
generate steam and cool our equipment Consumption
in the power production process, we
always ensure that our ejection into
the discharge canal and onward to
the nearest waterbody is free from oil,
harmful chemicals and substances that
could endanger the aquatic life and
Reduce Waste
ecosystem in the lagoon.
operating procedures so as to assure tices and by the recycling of material
The major environmental issues that we conformance with safety, regulatory whenever practical.
consider as significant are: and legalrequirements. Ensure all waste and effluent is
Generation from fossil fuels disposed in a safe and responsible
Fish Entrainment and Impingement Our environmental management system manner.
Water flow and level changes functions as a tool in the preservation As far as possible, purchase products
Thermal emissions to water Environment safe
and conservation of our immediate and services that do the least damage
Chemical emissions to water services & products
environment. to the environment and encourage
Spills others to do same.
The objectives of our environmental In achieving our environmental perfor-
Performance management system are: mance objectives, we ensure that envi-
ronmental risks are properly identified,
tal issues and the environmental effects
of our activities.
Objectives Zero incidence and environmental prioritized and managed in an appropri-
In keeping to the spirit and the letters pollution. ate and timely manner. In all, we endeavor to show duty of care
of our environmental management Minimize consumption of natural re- towards sustainable development, the
principles, we endeavor to curtail sources and energy, whilst consuming Advertently, we monitor measure and preservation and conservation of the
the discharge of hazardous water material goods in moderation. review our environmental performance environment, and the future genera-
from our facility into the sea whilst Reduce the creation of waste by the on a regular basis, just as we educate tions, who need this same environment
constantly monitoring our standard adoption of improved operating prac- and train our employees in environmen- to thrive.
Sustainability Report 2015 81

Compliance with Environmental Laws


Environmental Oil Spill Management
Infringement Owing to the fact that we operate a

I
steam power plant which was designed
n the reporting year 2015, Egbin
with the alternative of being fired with
has no record of infringement-
natural gas or heavy fuel oil, there are
breached, violated or contra-
the possibilities of negative environ-
vened on any environmental law,
mental impacts, considering that the
regulation or act. Our commitment to
fuels which are petroleum products are
ensure that we protect our environment
fossils fuels. Being that as it may, the
remains our drive towards a sustainable
tendency for the heavy fuel oil to spill
environment for power generation and
preservation of the ecosystem. or leak in the facility cannot be neglect-
ed, hence the need to establish a man-
Activities in our plant facility are agement system to prevent and control
monitored regularly to ensure regula- such oil spills.
tory conformance and environmental
compliance. As a matter of obligation, The oil spill management system is
Egbin is involved in the Nigerian Elec- focused on the prevention of oil spills.
tricity Regulatory Commissions quar- In April 2015, Egbin recorded a minor
terly health, safety and environmental oil spill of about eight hundred (800) Floating Boom to mop up any oil on the discharge water

performance meetings, where our litres of heavy fuel oil to the intake
environmental performance is assessed area, during the major overhaul of
and recommendations for improvement the unit five day-tank.. This incident oped and instituted. The company has As we advance into a more sustainable
are made. which was reported to the Lagos State also recruited a safety personnel with business, Egbin is now strictly guided
Environmental Protection Agency, the responsibility of monitoring any by the standards and regulations spec-
In order to guarantee the environmental gave rise to a post impact assessment, on-going job in the facility. Below are a ified by the National Oil Spill Detection
awareness of our workforce so that whose recommendations informed few other recommendations and initia- Regulatory Agency and contained in
we can sustain and improve our the management of Egbins decision tives that were institutionalized and are the following regulatory frameworks;
environmental performance, we will be to further strengthen our oil spill currently being implemente;:
training our employees that directly managementsystem. Comprehensive environmental moni- Oil Spill and Oil Waste Management
manage equipment on circumstances toring Regulations, 2011.
that may adversely affect the Going forward, an oil spill contingency The upgrade of oil-water separators Oil Spill Recovery, Clean-up Remedia-
environment on environmental impact plan which is in line with the provisions The installation of high integrity auto- tion and Damage Assessment Regula-
assessment and environmental and of the Federal Ministry of Environment, matic safety system to shut off the flow tions, 2011.
waste managementoperations. NOSDRA and LASEPA has been devel- of oil into a water drain line. In line with our safety desire for a
Sustainability Report 2015 82

zero oil spill environment, we foster a bines, we are constantly mindful of the
Learning and Development culture that need to ensure that safe and low risk
ensures that our personnels, most es- water is discharged into the lagoon.
pecially safety personnels are trained
on oil spill management; as such, we In minimizing our effect on the marine
consistently perform job hazard analysis ecosystem, at the water intake area
and risk assessment; commenced daily where large volume of water is abstract-
routine checks; and provide standard ed and passed through bar and trav-
operating procedures for members of elling screens, the significant amount
staff working on spill prone equipment of fish and macroinvertebrates which
and on spill prone areas. In addition, our could have been affected by screen
standard work permit system has been impingement, are made to swim back
reviewed and safety inductions carried into the lagoon. This is possible because
out for contractors handling oil related during the design and construction of
equipment. Floating booms were also the power plant, efforts were made to
procured and mounted at strategic po- explore feasible intake design options
sitions on the discharge canal to absorb that would minimize fish entrainment
oil on the discharge water. and impingement.

Aqua-life Safety
On the whole, the heat rejected from
our closed circuit water-steam system
The safety of the aqua life in our immediate
We understand that in generating is usually conveyed by the discharge environment is at the center of our business
electricity using a steam power plant water through our discharge canal to
operations. This is because in the operation
that obtains its cooling water from the the lagoon. This process which ordinari-
lagoon, the tendency to endanger the ly should pose a threat to the marine of our boilers and turbines, we are constantly
aquatic ecosystem is present. There- ecosystem considering the temperature
mindful of the need to ensure that safe and low
fore, the waterbody that supplies the of the discharge water, does not harm
cooling water for our heat exchangers the environment significantly, because risk water is discharged into the lagoon.
- condensers, closed circuit coolers and the discharge canal was designed as
common service coolers, harbors a ma- an open channel with more than 200
rine ecosystem. Like other marine eco- meters length and 50 meters width. The
systems in the world, the Egbin marine length and width of the discharge canal
ecosystem provides food and shelter to ensures that the discharge water travels
a high level of marine biodiversity. a long distance in order to dissipate further ensure that the already mixed In consideration of the safety of the
substantial amount of heat energy be- discharge water and lagoon water with sensitive aqua life in the marine ecosys-
The safety of the aqua life in our imme- fore it eventually mixes with the larger relatively higher temperature, flows tem, all these designs and constructions
diate environment is at the center of waterbody. Before the flow of discharge another long distance of about 400 were done in order to ultimately ascer-
our business operations. This is because water into the lagoon, civil works were metres before it eventually mixes with tain that after the travel of the relatively
in the operation of our boilers and tur- constructed close to the shore to the lagoon as a whole. high temperature of our cooling water
Sustainability Report 2015 83

from the condensers and coolers at Water discharged to the lagoon through the discharge canal
maximum of forty degrees Celsius
(40C), the temperature is reduced to
ambient for the safety of the marine
eco system.

Environmental
Remediation
The major environmental remediation
carried out in the reporting year was
the cleanup of oil from the surface
water at the water intake area during
the spill incident in April 2015. This re-
mediation process involved a complete
cleanup of the spilled heavy fuel oil
that leaked into the water intake area.
Efforts were made to ensure that the oil
was contained and the marine ecosys-
tem preserved.

Discharge Water
Monitoring
As a part of our commitment to ensure
that we are in full compliance with
environmental regulations, Egbin has
systems in place to assure the quality of
the discharge water and flue gas to the
atmosphere. Except for the discharge
water, generated industrial waste, flue
gas and other inconsequential emis-
sions, our operations do not release
harmful radioactive substances, tritium
vapour, carbon-14, radioiodine, and
radiological chemicals because we are
a power company that fires mostly on
natural gas, as against the heavy fuel
oil, which was provided as an alterna-
Sustainability Report 2015 84

As a part of our
commitment to
ygen, Hardness, Alkalinity, Acidity, Oil,
Sulphate, Total Coliforms, Total Plate Power Generation
ensure that we are
Count amongstothers.
and Climate Change
in full compliance Considering the importance of dis-
solved oxygen in the marine ecosys-
with environmental tem, the temperature of the water is
Low Emission Profile oxygen, water and other chemicals,

E
regulations, Egbin has inversely proportional to the dissolved
thereby causing detrimental ecological
oxygen present. Therefore, the higher gbin generates electricity
systems in place to the temperature of the water dis- predominantly from natural
effects and impacts on streams, lakes
and the aquatic environment. Armed
assure the quality of charged, the lower the dissolved oxy- gas. This is used as a fossil fuel
with the full knowledge of the effects
gen level. That said, our cooling water, to fire our boilers to power the
the discharge water which absorbs the rejected heat in our steam turbines and electric generators.
of acid rain and the strong desire to
avoid its occurrence, we always deploy
and flue gas to the heat exchangers and released back to By so doing, we constitute minimal
our capability to operate the power
the lagoon was averaged to be within impurities to the air quality and the en-
atmosphere. the permissible limit. vironment in terms of greenhouse gas
plant effectively and efficiently, to
lower emissions by ensuring complete
emissions. In the reporting year, all the
combustion of the natural gas in the
Furthermore, being fully aware that greenhouse gases including carbonates,
boilers and the monitoring of SOx and
the consumption of nitrate rich water sulphates and nitrates (COx SOx and
Nox levels flowing through the stacks to
by children may result to a condition Nox) released into the atmosphere from
theatmosphere.
known as methaemoglobinaemia our power plant were very much below
also known as blue babay syndrome the limits set by the National Environ-
tive in the design and construction of which can lead to death, we ensure mental Standard and Regulations En- Climate Change
theplant. that the water discharged is tested forcement Agency (NESREA) and other
relevant regulatory agencies.
Impact of Climate Change
for nitrate (NO3-) and other nutrients
Several programs already established that may be in ionic and utilizable on Our Business
that were leveraged upon in the re- forms of nitrogen, phosphate and Owing to the negative environmen- The combustion of a fossil fuel is an
porting year to guarantee the safety Sulphur. tal impact that the presence of SOx exothermic reaction that yields carbon
of the environment with respect to our and Nox could pose as a threat to dioxide. This reaction which has been
discharge water are regularly cham- the growth of plants, the process of occurring since the industrial revolution
The microbiological analysis of intake
pioned by our professional chemists,
water and effluents were not left out, photosynthesis and the quality of air, in 19th century has consistently pro-
who carry out series of physico-chem-
as we constantly determined the total Egbin has consistently operated within duced carbon dioxide from internal and
ical and microbiological analyses. In
coliform of final discharged cooling the allowable limits that guarantees the external combustion engines that have
ensuring that Egbin is always in line
water, E.coli, Faecal Streptococci, safety of the environment. been released into the atmosphere. The
with international best practices with
Staphylococci Aurous; Salmonella; enormous volume of carbon emitted
respect to environmental protection,
Vibrio; Clostridia; Yeast/Moulds and Acid rain is one of the horrendous over time has overwhelmed the natural
we perform tests such as pH, Chemi-
Total heterotrophic bacteria. The anal- environmental impact of SOx and Nox sequestration processes in the forests,
cal Oxygen Demand (COD), Biological
yses results showed that we were in because if released, they may rise into oceans, soils and savannah, thereby
Oxygen Demand (BOD), Dissolved Ox-
compliance with regulatory standards. the atmosphere to react and mix with leading to the increase in the overall
Sustainability Report 2015 85

To ensure the sustainability of our busi-


ness operation, adaptive measures are
being reviewed to mitigate the sudden,
gradual and long term effects of climate
change on power generation.

The choice of appropriate techniques


to adapt to higher temperatures with
water shortages are usually site specific.

Egbin is sited at the bank of the Lagos


lagoon, and is therefore not likely to
face water shortage in the near future.
The water intake system through which
cooling water flows into the power
plant was designed to take in water at
a depth where the temperature is much
lower than the surface temperature of
the water body. As a result, we expect
that even with the projected increase in
global temperature, our cooling system
will still be able to mitigate the impacts
Maintenance Engineers during a condenser cleaning process of climate change, as we will still be
pumping in cooling water at a tempera-
ture close to design values, discharging
and cooling to a temperature suitable
global temperature by a measure of The impact of climate change on a ther- mated that 5.50C increase in ambient for the marine ecosystem, due to the
nearly 20C. mal power plant like Egbin is significant air temperature may reduce electricity effectiveness of our supplementary
because the climate change can affect generation output by 3 4%. cooling system. In line with the forego-
Nigeria has a population of over 180 the output, efficiency and financial ing and in compliance with relevant en-
million and the total installed power viability of electricity generation in the Another serious issue that may arise vironmental regulations, we believe that
capacity is about 12,000 MW, which is long term. due to climate change is the access to our business operation will sustainable.
grossly inadequate. Despite the rapid sufficient water for cooling and return- As a power station that has operated
growth rates of renewable energy, ther- Research and studies have it that an ing it to the source at a temperature for 30 years and is expected to operate
mal sources of energy will still account increase in ambient temperature results low enough to prevent damage to even longer, we do not take for granted
for the greater proportion of the power in a decrease in the difference between aquatic ecosystems. The increase in the climate change adaption measures.
that will wheeled to the national grid. ambient and combustion temperatures, ambient temperature may hinder the These measures are considered based
Therefore, there will be production of thus reducing the efficiency of boilers rate at which the discharge water loses on a range of projections in the rapid,
more carbon dioxide, which may wors- and turbines. This is particularly valid heat energy before it eventually flows gradual and extreme changes that are
en the climate change predicament. for air cooled systems. Also, it is esti- into the waterbody. possible over the extendedperiod.
Sustainability Report 2015 86

Green House Gas Management S/N LOCATIONS (NO) (CO) (SO) (CH4) O% TSP H2S
Egbins commitment to cause carbon emissions and other
g/m3 g/m3 g/m3 g/m3 g/m3
greenhouse gases (GHG) to be as low as reasonably practi-
cable is unwavering, as we pride ourselves to be an environ-
NESREA 313 30000 425 NS NS 250
mentally responsible corporate entity. In our daily operations,
LIMITS
the improvement of energy efficiency is always in the front
burner. This makes our Operation engineers to continuously
1 Car lot ND 3520 ND ND 20 23 0
reduce the chances of emitting carbon monoxide which is a
product of incomplete combustion and is toxic to hemoglo-
2 Reception ND 2137 ND ND 20 22 0
bic animals and detrimental to the ozone layer.

3 Chemistry ND 4100 ND ND 20.2 35 0


The major source of our GHG emissions is the combustion of
unit
natural gas in our steam boilers and gas turbines; and diesel
in our emergency diesel generator - which is seldom oper-
4 Boiler ND 4330 ND ND 20.4 44 0
ated. The calculated value for the direct emission of carbon
dioxide equivalent in 2015 was about 2.86 million metric tons.
5 1st floor ND 3100 ND ND 20.1 37 0
Prior to 2013 when Egbin power plant was under the man-
agement of the Power Holding Company of Nigeria, the com-
6 2nd floor ND 4001 ND ND 20.3 52 0
pany did not have records of carbon emissions and GHG. Our
desire to operate sustainably in line with international best
7 Turbine ND 5501 ND ND 20.5 103 0
practices necessitated the creation of systems that facilitated
the documentation of 2015 carbon emissions. This is in a bid
8 Demin. office ND 4550 38 ND 20.1 35 0
to be able to capture, measure and subsequently evaluate
Egbins sustainability performance over time.
9 Kitchen ND 5220 ND ND 20.5 45 0

10 Store 45 4441 ND ND 20.2 40 0

11 Boiler - fur- 120 7502 67 ND 20.4 130 0


nace

12 Boiler - burner 175 7760 71.8 ND 20.1 100 0

13 Hydrogen ND 4210 59.3 30 20.2 80 0


plant
The air monitoring of the power plant
is done measuring the under listed 14 Gas Turbine 61 6001 34 ND 20.2 100 0
parameters at different locations. Generator

ND - Not Detected
Sustainability Report 2015 87
Sustainability Report 2015 88

In any case, greenhouse gas like Sul-


phur hexafluoride (SF6) which is used
National Environmental Standards and
Regulations Enforcement Agency. Conservation and
in high voltage electrical equipment for
insulation and to quench electric arcs,
is not applied in our facility as most of
Biodiversity
our circuit breakers are the air type.
The SF6 circuit breakers are used in
the switch yard where Egbin wheels its
power for evacuation. The switch yard
Significance of key to discovering effective biological
control organisms and for breeding
is under the management of one of Biodiversity disease resistant species. Even genetic

T
our major external stakeholders - the engineering of microorganisms used in
he indispensable dependence
Transmission Company of Nigeria, who the production of new processes and
of people on biodiversity can-
is responsible for the yard maintenance products is made possible because of
not be overemphasized. Our
and its emissions. the wide range of microorganisms in
foods and fiber supplies as
theenvironment.
well as the materials and products we
The significant atmospheric pollutants use in our everyday lives are predom-
in our facility except for CO2 are acid inantly from plants and animals. The It is well known that the management of
gases (NOX and SOX). According to microbes and bacteria which form a the aforementioned products and ser-
the plant design, these GHG should be unique and critical section of the food vices provided by biodiversity is essential
measured using analyzers installed on chain ensure the degradation of the to its long term availability just as it has
the stacks. However, due to the nonex- used materials and products in order to been established that the poor people in
istence of data collation previously, the maintain the cycle in the ecosystem. our society depend more on biodiversity,
sustainability performance of our plant as they are more reliant on local ecosys-
with respect to acid gas emissions may The sustainability of the ecosystem de- tems for food and supplies. This makes
not be assessed. pends greatly on our ability to conserve them vulnerable to short supply which
biodiversity. The importance of biodi- may arise as a result of the irreversible
Going forward, Egbin has procured versity to our environment and to us at change of the state of biodiversity habi-
state of the art mobile flue gas analyz- The importance of Egbin, is its significance in ecosystem tat, extinction of species and the oblit-
ers and commenced the complete over- eration of habitation due to population
haul of flue gas analyzers in the plant in
biodiversity to our services such as the protection of water
expansion and modern development.
resources, soil formation and protection,
2015, to support accurate analysis and environment and pollution breakdown and absorption,
determine quantity of NOX and SOX The increasing need of energy in our
flowing through the stacks to the atmo-
to us at Egbin, is its and its contribution to climatic stability.
society is partly responsible for the loss
sphere, in order to evaluate the quality significance in our Considering that people heavily depend of diversity thereby lowering the ability
of our fuel and abate the emission of
NOX and SOX. The average values of
ecosystem on biological resources like the different of the environment to absorb carbon,
filter waterborne and airborne pollutants,
variety of primary producers (plants),
NOX and SOX for the reporting year medicinal resources, wood products, and remain a reliable source of natural
is disclosed in this report and all the ornamental plants, and breeding stocks, resources needed for the survival of the
data were below the limits set by the the conservation of biodiversity is human race.
Sustainability Report 2015 89

Quest to Save
Biodiversity
Management
In ensuring the conservation of
biodiversity and consequently
of Waste
reducing the rate of its loss to modern
development and increasing energy Waste Import and
needs, we at Egbin always ensure Export
that in conducting our business, we
Nigeria is a signatory to the Basel Con-
do it bearing in mind that sustainable
vention, a treaty aimed at regulating
development is the development that
the import and export of waste. Egbin
meets the needs of the present without
Power PLC whose operations resides in
compromising the ability of future
Nigeria and serves the Nigerian nation-
generations to meet their own needs.
al electricity grid, does not in any way
The drive to operate sustainably propels
or form, move waste across national
us to be environmentally responsible
boundaries, neither do we trade waste
in our quest to produce power, taking
with members and non-members of the
into account the absolute necessity of
Organization for Economic and Coop-
conservingbiodiversity.
eration Development (OECD). Accord-
ingly, zero tons of waste is shipped
Characteristically, discarded water in
internationally.
our sump pit and neutralization sump
pit from resin regeneration and water
treatment processes, are tested for
of our extended discharge canal and Additionally, we have a system in place
Solid Waste
acidity and thence neutralized to the pH The wastes generated from Egbin
a supplementary cooling system that at the water intake area; designed to
of between 6 and 9 before discharged Power Plant are disposed by accred-
decreases the temperature of the final reduce young and adult fish entrain-
into the water body. The pH level of the ited contractors with the Lagos State
discharge water and makes it reason- ment and impingement. This goes a
water is ascertained to guarantee the Waste Management Agency (LAWMA)
ably close to atmospheric temperature long way to sustain the life cycle of the
safety of the diverse microorganisms depending on the type of material. In
before it flows into the lagoon. The flow fish ecosystem in the lagoon as well
that inhabit in the marine ecosystem. the reporting year, an estimated value
of oil into the waterbody does not in as the overall food chain in the marine
of 936 tons was disposed by LAWMA;
any way conserve biodiversity; whats ecosystem. Also, the cooling water
Our Love for Nature more, it destroys it because it extermi- which flows out of our heat exchangers
and method of disposal by LAWMA is
majorly landfilling.
In order to assure the conservation nates the living organisms in the water into the discharge canal is not chlo-
of life in the marine ecosystem, as as a result of the change in the required rinated for antifouling. The non-chlo-
indicated earlier, we have a system living conditions. Therefore, in the rare rination of the cooling water greatly Liquid Waste
that reduces the temperature of our event that there is an oil leak from our reduces the mortality rate of fish eggs, The management of waste oil is carried
discharge water to nearly ambient facility, we use floating boom to curtail larvae and other microorganisms in the out in conjunction with the Lagos State
before it mixes with the larger water the discharge of oil from the plant to water - which are essential components Environmental Protection Agency
body. This is achievable by the means the lagoon. of biodiversity. (LASEPA). When we need to dispose
Sustainability Report 2015 90

During the regeneration of resins in our Resins are ion exchange polymers exchange operation. However, after a
our waste oil, we invite LASEPA agents
water treatment and demineralization used in our condensate polishing, long period of usage, resin capacity
and their accredited contractors who
plants, waste water is produced. Most water treatment and demineralization test is performed, and if it fails the test,
buy the waste oil for recycling. Prior to
times, the waste water produced from plants, for separation, purification and the resins will have to be taken out.
the invitation of LASEPA, our chemists
the regeneration of resins in our water decontamination of the water used The resins are thereafter disposed for
test the oil in our state-of-the-art lab-
treatment and demineralization plants is in our facility for several purposes recycling and to other industries that
oratory to determine its water content
acidic, therefore harmful to the marine including for generation of steam to may require a low capacityresins.
proportion. The Health Safety and En-
ecosystem. As an obligation and envi- power the turbines and cooling water
vironment (HSE) department at Egbin
ronmental responsibility, we neutralize for critical equipment. Overtime, these
Power PLC ensures that the waste oil
the regeneration waste waters with resins lose the capability to remove
is delivered to the LASEPA accredited
caustic soda (sodium hydroxide) in our minerals from the well water; hence
contractors under the supervision of
neutralization sump pit and test for a they are regenerated with acid and
the LASEPA agents, and a confirmation
pH of 6.5 to 8.5 before we discharge to caustic soda to revitalize them for
document is issued to HSE to ascertain
the lagoon. more efficient and effective ionic
that the waste oil was properly deliv-
ered to the approved contractors. The Demineralization Plant

Hazardous Waste
Hazardous waste generated within
our facility ranges from acid stock
sludge, caustic solution sludge, calcium
hypochlorite solution sludge, lime
sludge and lye sludge. In ensuring that
these effluents do not pose a threat
to the safety of the environment, we
dilute and test for the pH. At every
point in time when we test the acidity
and alkalinity of the effluents in the
pH scale, we always make sure that
they are within the standards provided
by the United Nations Environment
Programme (UNEP), the Federal En-
vironment Protection Agency and the
Lagos State Environmental Protection
Agency pH between 6.5 and 8.5.
Other tests are also conducted on the
effluents discharge to the waterbody,
they include total suspended solids,
chemical oxygen demand, biochemical
oxygen demand etc.
Sustainability Report 2015 91

Resource Utilization
Water Management to treat the ground water at different
stages to produce fresh water, portable
and Conservation water and demineralized water. Hence,
Considering that many steam power the more we are able to conserve the
plants including Egbin, draw water water in our system, the higher its im-
needed for the production of steam to pact on our bottom line.
drive the turbine from the groundwater
aquifer, if drawn at a faster rate than In addition, bearing in mind that our
being replenished either by infiltration steam power plant was designed to run
from the surface or from streams, the on zero make-up water because it is a
water table can become lower, result- closed system, we never fail to adhere
ing in a cone of depression around our to our mode of operation which not
deep wells. only saves us the money for purchasing
chemicals for water treatment, but also
Based on geologic and hydrologic con- spares us the energy that would have
ditions of the aquifer, the impact on the been used to pump the water from the
Water Clarifier
level of water may be short-lived or last groundwater aquifer through the water
for a longer period, or even go com- treatment plant, the demineralization
pletely dry due to excessive pumping. plant and to storage.

For Egbin, the availability of water


for the production of steam and the
Reduced Energy of our in-house energy consumption The management of demineralized
cooling of our systems is central to the Consumption from 7% to 5.5%. In reducing our house water for the boiler; fresh water for the
sustainability of our business. Therefore Egbin is a power plant that has the loads, energy efficiency and manage- firefighting system; and portable water
we apply conservative principles in the capacity to produce 1320 mega-watt to ment tools were applied, these enabled for our office complex and housing
operation of our steam power plant in the national grid, however, we consume us to identify energy saving opportuni- colony, Egbin has significantly reduced
order to conserve water. 7% of the energy generated to power ties. The key areas where we recognized water consumption. Consequently,
pumps, compressors, control systems, that we could reduce energy consump- the energy required to pump water,
It is a fact that the lower the volume of plant auxiliaries and other critical tion were mode of operation and plant whether treated or not, from the wells
water we use in our system, the lower equipment which must run 24 hours electrical systems. to the treatment plant, the treatment
our operational cost. This is because we oftheday. plant to the housing colony and within
allocate considerable funds to the pro- As a thermal power plant whose tur- the station, was saved and sent to the
curement of chemicals like caustic soda, One of our major achievements in the bines run on steam, water is central to grid for more revenues to impact our
sulphuric acid, sodium hypochlorite etc. reporting year 2015 was the reduction the generation of power in our facility. bottom line. The reduction in water
Sustainability Report 2015 92

resource consumption has also reduced


the cost of treating the water with con-
sumables, which overtime added up to
sizeablesaving.

Furthermore, considering the fact that


Egbin was built in 1983, the lighting
system installed majorly consisted of
incandescent light bulbs and some
compact fluorescent (CFLs). Compared
with Light Emitting Diodes (LEDs), the
incandescent and CFLs bulbs consume
more energy, have far higher operat-
ing cost, higher CO2 emissions, less
durability and have same light output
in Lumens but with LEDs consuming
far lesser power. This necessitated the
replacement of all the lighting bulbs in
the office complex, the power house,
auxiliary plants, the street lights in the
facility and housing colony with Light
Emitting Diodes (LED) lamps. The
lighting bulbs in the tennis courts, club-
house, swimming pool area were also
replaced. As a result, we achieved an
unprecedented light energy savings of
55%. The operation of the street lights
was also managed in order to ade-
quately take advantage of day lighting.
Sustainability Report 2015 93

Social Responsibility

Community Relations Our People Health Safety and Our Committment to Safety
Security of Our People
Sustainability Report 2015 94

Community Relations
Stakeholders cultural integration with the people of
Egbin, Ipakan and Ijede, the organiza-
Engagement

I
tion hosts the communities in quarterly
n 2015, Egbin in recognition of meetings sharing informations about
internationally acclaimed best its activities, social responsibilities and
practices and in a bid to promote receives feedback.
community development and
stakeholder inclusiveness embarked In 2015, our focus was to improve the
on a process of identifying, mapping, security and standard of living of our
assessing and weighting the expecta- local communities through different
tions of its stakeholders, thus, including initiatives.
stakeholder identification the analysis
into its business priorities with the aim
of meeting and exceeding stakehold-
Reinforcement of Donation to Universities: UNN Nsukka, UNILAG, UI and UNIABUJA.

ers expectations, where necessary. The Health Care Facilities


union of the viewpoints of both the Since takeover by KERL in 2013, Egbin
stakeholders and the organization en- has continuously strived to contribute
ables the identification of issues which immensely to the sustainable develop-
are of core importance to Egbin and its ment of the society through different
stakeholders. vehicles. In 2014, as one of our cor-
porate social responsibilities, was the
Our commitment to building and grow- provision of constant electricity supply
ing a mutual relationship between our to the general hospital of Ijede, directly
organization and the surrounding com- from the generating station.
munities: Egbin, Ijede and Ipakan, has
evolved over years. These relationships This corporate responsibility was
are established and maintained through borne out of the quarterly meetings
constant engagement of the youths and hosted by the organization for its
community leader. The dialogues are local communities, having taken into
premised on the foundation of respect consideration feedback from the
for language, customs, human rights, communities. In 2015 with continuous
religion and social beliefs. investment in the initiative, we achieved
a reduction in the operating cost of the Construction of boreholes with over-head water tanks in Egbin and Ijede communities
To enhance relationships and foster health facility and improved the health
Sustainability Report 2015 95

care services rendered to the local The importance of tries research institutions, in 2015, Eg-
were employed as part-time/ contrac-
tors for the Overhaul project, which has
community of Ijede.
biodiversity to our bin donated High Pressure Heaters to 5
been on-going since 2014.
In 2015, Egbin continued to develop Federal Universities. This is to provide
relationships with the Local communities environment and hands on training for students in the
(Egbin, Ijede and Ipakan), through
Corporate Social Relations, which
to us at Egbin, is its

bio-energy field
In 2015, Egbin employed both skilled
Addressing Egbin,
includes and is not limited to: significance in our and unskilled labour from the local Ipakan and Ijede
Sinking of Portable water bore-
holes in Egbin, Ijede and Ipakan
ecosystem communities. Some of the local com-
munity indigenes were employed as full
Grievances
Egbins grievance channel welcomes
communities, improving the quality of time staff of the company, while several
stakeholders in the local communities
water consumed by the indigenes and
to file their grievances with the organi-
preventing waterborne diseases in the
zation. In 2015, three grievances from
community
the local communities were filed. Two
Monthly donation of malaria drugs pertained to social relation issues which
and preventive aids to Ijede General include:
Hospital. This was kick-started by Employment of indigenes as perma-
Egbins commitment to checkmate nent staff members of the organization.
malaria outbreak in the community. Some of Egbins corporate social re- Partnership with the local communities
sponsibilities include but not limited to: in sourcing for skilled and unskilled
Community labour for the overhaul projects.
Our investment in the future energy One was directed towards the oper-
Empowerment sector leaders through the rehabili- ation of the power plant, while none
Egbin continues to support the lo- tation of the school facility in Egbin pertained to human rights or environ-
cal communities, through economic (Power Field Group of Schools) to mental violations.
empowerment programs. In 2015, the improve the quality of education of
organization sponsored a vocational the local community indigenes. With
training which featured boat driving, continuous efforts in raising rounded
boat repairs, soap making and bead future generation leaders from our
making trainings. Facilitators equipped local communities, in 2016 Egbin will
the indigenes of the community with the be offering scholarships to outstand-
necessary skills and management atti- ing students who are indigenes of the
tude in building a sustainable business communities. This is to encourage hard
through the various vocations. work among the growing generation.
As an organization, Egbin has constantly Recognizing the value of development Grievances from Local Egbin Corporate
invested in the security of the communi- in our local communities, Egbin reno- Communities (Egbin, Communications Egbin Management
ties, through the donation of communi- vated the communities Town Halls and Ipakan and Ijede) Relations Office
cation equipments and financial contri- some blocks of school classrooms of
butions towards expansion of the Police the local communities.
area command headquarters in Ijede. In the quest to strengthen the coun-
Sustainability Report 2015 96

The development of new leaders


and staff retention is critical to the Our People
sustainability of the organization. In
2015, Egbin employed young engi-

T
neers to strengthen its labor force.
About 15% of the young engineers As an organization he value we place on our mally managed by the government. In
who were employed based on merit employees can be gauged view of this; the organization developed
and competence are indigenes of the
that understands the from our workplace protection a new and more competitive compen-
local communities. benefits of competitive scheme which apart from life sation structure, whereby compensa-
insurance, medical care, disability and tion levels for each grade is within the
advantage, Egbin inability coverage, parental leave and same range (salary bands) irrespective
The plant overhaul project, which
had the peak of its activities in 2015, attract and retain retirement provision, we also ensure of gender as was the case even before
that our Health Safety and Environment
was an avenue to empower the local
competent and policy and qualitative development pro-
takeover from government.
communities. Korea Electric Power
Corporation (KEPCO), the executors capable people, with grams and trainings, facilitated through The new compensation structure has
of the overhaul project partnered the aim of creating local and international training orga- significantly increased the standard of
with the Local Communities to recruit nizations help safeguard the lives and entry level wages/salaries when com-
both skilled and unskilled labour for a workplace where careers of our esteemed human capital. pared to the local minimum wage. The
it activities. By the end of 2015, the employees growth current ratio as at the period of report-
overhaul project engaged a total of As an organization that understands ing is about 8:1.
150 persons in temporal employment. and job satisfaction are the benefits of competitive advantage,
ultimate. Egbin attract and retain competent Also, in keeping our workforce up to
April 29 2015, Egbin recorded a (Tier and capable people, with the aim of date with the latest trends, technolo-
1) spill, under the National Oil Spill creating a workplace where employees gies and techniques required to sustain
Detection and Response Agency growth and job satisfaction are ultimate a power generation company such as
classification. This spill was ade- in order to sustain and grow our work- Egbin, in the reporting year, a training
quately contained, within the plant force. We employ an open and trans- program was developed for our techni-
facility and reported to the relevant parent but comprehensive performance cal and non-technical staff in collabora-
authorities for inspections and further assessment system. This performance tion with our technical partner Korea
actions. Grievances were filed by and career development review was Electric Power Corporation (KEPCO), to
the local communities with respect conducted for 100% of Egbin employ- attend several training and discussion
to the spill. No infraction or ligation ees, both men and women, and all job sessions in South Korea.
was filled against the organization, as grades (JG) from JG10 to JG 1.
the responsible bodies declared that Other local trainings aimed at achieving
the spill was adequately contained. This review has enabled the compa- the same purpose was conducted by
Subsequently, Egbin has also put in ny realign its compensation benefit the National Power Training Institute
place several measures to checkmate structure which was based on the civil of Nigeria for our new graduate engi-
future occurrence (See the Chapter service compensation benefit structure neers and by the Applied Engineering
on Environment). considering that the company was for- Technology Initiative Limited for expe-
Sustainability Report 2015 97
Sustainability Report 2015 98

will have 12 percent of our employees


tending towards retirement, while 25
percent will retire in the next 10 years.
This was as the rate of employee turn-
over in 2015 was 0.77%.

rienced and non-experienced opera- and efficiency of our business oper- Retirement for the next 10 years
tionengineers. ations whilst bridging the potential
skills gap that will be created when the
Egbin is an organization that believes in senior staff with nearly 35 years of ex-
gender equality and equal opportunity perience or 60 years of age retires.
for all with staff strength of 393 em-
ployees and an annual staff turnover of Therefore, the new recruits are of the
18 percent as at December 31, 2015. Out following age group: Power Plant Engineers Support Maintenance
of the 393 members of staff, 37 were 20 30 years = 35 people Operators Services Mechanics
female and 356 were male. Although, 31 40 = 1 person
the number of males in Egbin continues 51 50 = 2 people
to dwarf their female counterpart, there
was a little increase from 2014 when
they were 32.
During the year 2015, in order to
encourage sustainability through
Next 5 Years (%) 3 6 1.8 1.5
transgenerational transfer of skills and
In the reporting year 2015, 38 (31male
7 female) new employees were perma-
knowledge, the staff strength of the
organization was increased by 11% com-
Next 10 Years (%) 5.3 9.92 5.3 3.6
nently hired to increase effectiveness pared to 2014. In the next 5 years, we
Sustainability Report 2015 99

Developing Leaders
expose students and recent graduates
Trainee Engineering to Egbins business culture, structure
Program and operations, thereby acquiring
The Trainee Engineering program was technical and management skills for a
conceptualized to provide young en- period of 6months -1year.
gineers with the opportunity to learn,
grow and build their career, while in the In 2015, the internship program admit-
process help ensure Egbin has the right ted 85 tertiary institution students and
skills, leaders and culture needed to 6 recent graduates for both technical
archive its business priorities now and and management internship positions.
in the nearest future. Forward looking, Our interns are exposed to different
almost 20 percent of Egbins technical departments of our operations, giving
staff are eligible to retire in 10 years, them hands on the job experience.
Egbins Trainee Engineering program Bridging the gap between the educa-
will produce high-potential employees, tional institutions and the industry, our
through targeted trainings and develop- seasoned engineers act as mentors
ment to prepare them for leadership in to the interns, showing industry and
the future. workplace application of the knowledge
acquired from the tertiary institutions.
In 2015, the Trainee Engineering Pro-
gram enrolled 33 young engineers,
across several fields of engineering
for the duration of one year. With our
Equal Opportunity and Open Employ-
ment policy, we conduct our recruit-
ment process to select the best and
12%
talented people based on their ability Men Women
and capability, without discrimination
on age, gender, academic background,
religious beliefs and culture. Trainee
Engineers
Egbin Internship Program by Gender
Egbin internship program was designed
for the empowerment of students and
recent graduates of tertiary institutions 88%
in Nigeria. This program is structured to
Sustainability Report 2015 100

The Power behind We are committed


Diversity to ensuring that
Diversification of perspectives has employees, contractors
always been a major source of Egbins and every user of the
strength. These diverse perspectives of
our people bring about innovative ideas facilities are treated
and effective solutions to challenges in with respect for
the organization. Our belief in a cul-
ture that values diversity and inclusion diversity, to promote
has made our work environment very equal opportunities
serene and accommodating.
forall.
At Egbin, we do not condone any form
of discrimination or violence. We are
committed to ensuring that employees,
contractors and every user of the facili-
ties are treated with respect for diver-
sity, to promote equal opportunities for
all. The organization is making consider-
able efforts to adopt a Corporate Gov-
ernance framework of operation from
the year 2016. This will include policies
such as fairness and equal opportunity
treatment in the work place, to further provides childcare services for both average of 48.7 hours of training per perienced subject matter facilitators.
our commitment to diversity. employees of the organization and also head. The trainings focused on capacity Egbins familiarization roadshow pro-
the local communities. The facility is of and capability development, equip- grams for staff members to ensure full
Our value for Gender equality motivates advantage, as it is of close proximity to ping the staff with tools for workplace compliance with the policies of the or-
a happy workplace with a good work- the power station. productivity. This includes soft skill and ganization started in 2014. In 2015, road
life balance improving the organizations computer proficiency trainings. show programs for leave management
productivity. Egbin encourages employ-
ee promotion and job motivation with-
Training and The off-the-job trainings which were
and Human Resource interaction was
organized. This elucidated the policies
out any discrimination between men Development facilitated by KEPCO were conducted in on leave and human resource issues,
and women. Egbin promotes a balance The foundation of human resource de- international training facilities, equip- the staff members were encountering.
between work and life, encouraging velopment at Egbin is on-the-job train- ping the technical staff with skills for
employees to start families, through ing. In 2015, partnership with Korean efficient use and management of the
leave packages, such as parental leave Electric Power Cooperation (KEPCO), equipments. The international trainings
for spouses. In 2015, we established facilitated both on-the-job training and featured both classroom and practical
the companys nursery facility, which off-the-job training. Egbin recorded an knowledge sharing experiences by ex-
Sustainability Report 2015 101

Performance goals and key performance index at the

Management beginning of the assessment year.

Egbins performance assessment sys- Line Manager Assessment - a meeting


tem is structured around achievement between the Line manager and the em-
assessment of the set goals based on ployee, discussing issues that emerged
a capability assessment conducted by during the assessment and targeted
the employee, his line manager and development actions in the following
the head of department. All employees assessment calendar.
of the organization are subject to the
performance assessment system. The Departmental Head Assessment - a
assessment results are expressed in meeting consisting of the departmental
scores that are used in promotion con- head, line manager and the employ-
siderations and personnel management, ee, analyzing the assessment and the
such as selecting mentors for trainee issues raised by the assessment of the
engineers and interns. employee, by the line manager and
departmental head. The departmental
In 2015, the performance assessment head passes the final remarks and rec-
was conducted twice. This featured the ommendations to the human resource
mid-year review and the end-of-the- department.
years review, assessing all 393 employ-
ees of the organization. In ensuring the The performance assessment system
assessment of an employee is 3600, the is an open system, which welcomes
system has employed two instruments: criticism by the assessed employee,
ensuring a fair and equal treatment in
Performance Evaluation the organization.
Behavioural Assessment

The assessors (Line-Manager and


Departmental Head) discuss with the
employees the criteria for assessment,
based on the objectives set at the
beginning of the year, through the goal
setting system. The performance as-
sessment system is conducted through
3 steps

Self-Assessment - the employee rates


himself with reference to his/her set
Sustainability Report 2015 102

Health Safety and


Security of Our People

E
gbin has always given major al activities, which includes:
priority to safety of its internal A Workshops facilitated by the Lagos
and external stakeholders State Fire service: The workshop
including suppliers, contractors equipped employees with the knowl-
and their employees ensuring edge, on how to respond proactively
immediate attention to all perceived and effectively in the event of fire
risks, reducing it to its lowest impact incidents. The facilitator concentrated
potential. We execute our operations efforts, training the fire marshal team
according to our licensors - Nigerian of Egbin. The team constitutes first
Electricity Regulatory Commission aiders and oil spill responders in case
(NERC) safetyregulation. of emergency situations A seminar
on personal health with peculiar
Egbin is very proud of its strong safety emphasis on protection of the ears:
culutre and ethics. Employees of egbin The seminar was very enlightening as
continuously worked to improve the it covered the various ways the ears
organizations positon as a safe power can be cared for and damaged by
generator and to archieve a goal of zero the employees daily activities. The
accidents, through several initiatives seminar provided free auditory tests
which were featured through the 2015 to help employees better gauge the
calender. current health status of theirears.

The safety department unveiled the


Annual Safety Week organizations safety slogan Working
In Egbin, the core value of safety at all with safety, Life for Tomorrow
levels of the companys operation goes
beyond a mantra. This necessitated the
organization of the safety week, where
Quarterly Health the company facilitated quarterly basic disease prevention techniques
employees were treated to workshops Seminar health talks with its HMO (Hygeia all geared towards one purpose: To
on hazard identification within the Egbin aims to attain sustainability Nigeria) where employees were Help employees stay healthy at all
Plants environment and Regulatory through Maintenance of a Healthy enlightened on a diverse range of times. The seminars also featured free
requirements for the companys oper- workforce. This is one of the core topics ranging from making ideal medical check-ups for employees of the
ations. objectives of the companys health diet choices to lifestyle adjustments organization.
In 2015, the safety week featured sever- and wellness policy. In line with this, to eliminate high risk behavior and
Sustainability Report 2015 103

Reactivation of Fire Our approach to security management

Alarm System of the biggest thermal power plant in


Nigeria is PROACTIVENESS. We do this
The Station Fire Alarm System was in- through intelligence gathering, setting
stalled and activated in the last quarter out standard practices and ensuring
of 2015 with the dual aim of providing strict adherence to security policies and
ample time for the safe evacuation of procedures by all stakeholders which
employees and to serve as a trigger for include, security personnel, members
the prompt deployment of response of staff, suppliers and visitors. This
teams to minimize damage to compa- is the routine practice which in most
ny assets. This system was tested and cases deals with short and long term
officially put to use with a Fire drill that incidentmanagement.
held in December 2015. The fire alarm
system provides a comprehensive early Our meticulously thought-out and
warning and notification system for fire articulated incident management and
incidents within the plant. response system that has been ad-
opted by the company, has inputs and

Unsafe-Act/Unsafe- contributions from senior employees in


the management team. These members
Condition Drop of staff have been particularly trained

Boxes on the part to play in the event of an


emergency in the facility.
Striving to settle an autonomous culture
through enhancing safety awareness
Furthermore, on-site and off-site emer-
and ensuring the goal of zero accidents,
gency planning has also been carried
the Health Safety and Environment
out. This involved emergency plan
department, introduced the unsafe act/
testing, training, practical field exercises,
unsafe condition drop boxes positioned
routine incident awareness training for
at strategic places in the organizations
employees and security personnel in
facilities, for easy and prompt reporting
collaboration with security and emer-
of any identified hazard by the employ-
gency response agencies such as the
ees. This was enforced to improve the
Nigerian Police Force, Department of
reporting of incidences by employees
State Security, Nigerian Army, Ambu-
ensuring quick intervention.
lance Services etc.

Disaster and In guaranteeing a robust security

Emergency Planning network and system in and around


the power plant, we developed a
and Response screening and approval system for third
Sustainability Report 2015 104

party suppliers - guard companies


supplying guards and armed riot Our Commitment to Safety
policemen; ensured effective
communication through routine
awareness reports, mobile phones
and secured radio channels; and

I
trained staff and contractors on
operating procedures and standard n line with the Nigerian Electricity and safety management system, which investigation, making recommendations
forms. Occasionally, trainings are Regulation Commission (NERC) the employees have been trained on. to the management.
carried out if the need arises. This is health and safety code, Egbin The manual is a compendium of the
to ensure that suppliers and other has a total of 22 members of the various companies safety policies To sensitize our stakeholders and
stakeholders who use or visit the management in the safety committee guiding the employees and any other promote a safety culture, the health
facility, comply with the safety and headed by the CEO, working in col- stakeholder who performs any activity safety and environment department
security requirements and standards laboration with the Health Safety and in the organization. The Occupational constituted a 40-member safety
expected in the discharge of Environment department, to imple- Health and Safety (OHS) manual: representatives committee (nearly
theirduties. ment the companys health and safety 10% of the staff strength) to engage
policy. The safety committee is grouped Defines the responsibilities of the man- employees in safety discussions
into six sub-groups, saddled with the agement & employees as well as other and enlightenment during standup
responsibility of assessing the risk of stakeholders. meetings, toolbox meetings and all
the various sections and areas of the It comprises of the various systems of other fora that is aimed at promoting
facility, thus, identifying the inherent recording & reporting incidents and the safety of personnel, equipment and
hazards and proffer mitigating actions/ accidents in workplace e.g. near miss the environment.
control measures. report forms, incident forms, accident
Our commitment to investigation forms, checklist forms etc. The safety representatives are from all
ensuring safety through In compliance with the NERC Safety It highlights the working procedures the departments of the organization,
Manual IV, Egbin conducts recommend- for various work activities to ensure the collaborating with the safety man-
trainings and awareness ed trainings which are not limited to: safety of the employees, equipment agement committee to ensure safety
campaigns has driven general safety awareness, office safety, & environment. This also includes the compliance in all departments. With
confined space work and safety, identify work permit. improved internal communication
us to facilitate 77% and execute training, hearing conserva- within the organization, weekly safety
of the recommended tion training, and accident investigation. The system of rules applied in recording messages on various safety issues are
Our commitment to ensuring safety and reporting accidents statistics sent in emails to all employees, to serve
trainings and through trainings and awareness cam- in Egbin, is in accordance with the as continuous reminders to the infor-
workshops in the NERC paigns has driven us to facilitate 77% of companys OHS manual. The accident mation learnt in formal safety trainings
the recommended trainings and work- report form is used by victims of
Safety Manual IV shops in the NERC Safety Manual IV. accidents or persons working with the
organized quarterly.

victim to report accidents within the The MERS (Middle East respiratory
In 2015, Egbin successfully implemented workplace. The accident investigation syndrome) and Ebola virus ravaged
a comprehensive occupational health team conducts a root cause some countries in the Middle East
Sustainability Report 2015 105

and West Africa in 2015. Egbin rose


to the occasion with a comprehensive
plan to prevent the spread of the
infection in the plant and within the
office complex. Some of the preventive
initiativesincluded:

Creation of awareness through posters,


emails and safety talks.
Education of employees on personal
hygiene to avoid transmission.
Screening using infrared thermometer
was introduced at the station gates
while hand sanitizer dispensers were
positioned at all entrance doors.
Sustainability Report 2015 106

Appendix
Sustainability Report 2015 107

GRI G4 Core In Accordance Option

GENERAL STANDARD DISCLOSURES


GRI G4 Disclosure Disclosure Disclosure Direct Response
Disclosure Number Definition Location In Report Status Clarification
Status

STRATEGY AND ANALYSIS

G4 - 1 Statement from the most senior decision Board Chairmans Disclosed -


maker of the organization. Notes

G4 - 2 Description of key impacts, risks and Business Disclosed -


opportunities. Sustainability
Strategy and Risks

ORGANIZATIONAL PROFILE

G4 - 3 The name of the organization. Company Profile Disclosed -

G4 - 4 The primary brands, products and services. Company Profile Disclosed

G4 - 5 The location of the organizations - Disclosed 7A Oluwa Road, Ikoyi, Lagos,


headquarters. Nigeria.

G4 - 6 The number of countries where the - Disclosed One country


organization operates, and names of (Nigeria)
countries where either the organization has
significant operations or that are specifically
relevant to the sustainability topics covered
in the report.

G4 - 7 The nature of ownership and legal form. Strong Financial Disclosed -


Performance
Sustainability Report 2015 108

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 - 8 The markets served (including geographic Business Disclosed -


breakdown, sectors served, and types of Sustainability
customers and beneficiaries).

G4 -9 The scale of the organization. Company Profile Disclosed -

G4 -10 Total contractor workforce (contractor, Growth of Local Disclosed -


subcontractor, independent Economy
contractor) by employment type, Our People
employment contract and regulatory regime.

G4 -11 Percentage of contractor employees - Not Disclosed Egbin does not yet have a system
(contractor, sub-contractor and independent in place to assess contractors on
contractor) working for the reporting collective bargaining agreement
organization covered by collective coverage for their employees.
bargaining agreements by country or
regulatory regime.

G4 -12 The organizations supply chain. Supply Chain Disclosed -


Management

G4 -13 Significant changes during the reporting Company Profile Disclosed -


period regarding the organizations size,
structure, ownership, or its supply chain.

G4 -14 Whether and how the precautionary Business


approach or principle is addressed by the Sustainability
organization. Strategy and Risk

G4 -15 Externally developed economic, - Disclosed International Financial Reporting


environmental and social charters, principles, Standard.
or other initiatives to which the organization
subscribes or which it endorses.
Sustainability Report 2015 109

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -16 Memberships of associations (such as - Disclosed Association of Power Generation


industry associations) and national or Companies.
international advocacy organizations. Operators of the Electricity
Industry.
Council for the Regulation of
Engineering in Nigeria (COREN)

EU1 Installed Capacity, broken down by primary Company Profile Disclosed -


energy source and by regulatory regime.

EU2 Net Energy Output broken down by primary Egbin-Plant Disclosed -


energy source and by regulatory regime. Description

EU3 Number of residential, industrial, institutional - Not Disclosed Egbin is a power generation
and commercial customer accounts. company and due to the
structure of the Nigerian power
industry, does not interface with
residential, industrial, institutional
and commercial customers,
thus Egbin does not have these
customer accounts. The electricity
distribution companies will have
such information.
Sustainability Report 2015 110

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

EU4 Length of above and underground - Not Disclosed Egbin is a power generation
transmission and distribution lines by company and does not directly
regulatory regime. manage above and underground
transmission and distribution
lines to residential, industrial,
institutional and commercial
customers. The Transmission
Company of Nigeria and the
electricity distribution companies
will have such information.

EU5 Allocation of CO2 emissions allowances or - Not Disclosed There is currently no carbon
equivalent, broken down by carbon trading trading framework in Nigeria at
framework. the moment, therefore Egbin does
trade CO2.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4 -17 The organizations financial statement Financial Status Disclosed -

G4 -18 Defining the report content and Aspect The Egbin Disclosed -
Boundaries. Sustainability Report

G4 -19 The material Aspects identified in the Business Disclosed


process for defining report content. Sustainability
Strategy and Risks

G4 -20 The Aspect Boundary within the Materiality Matrix Disclosed -


organization Graph

G4 -21 The Aspect Boundary outside the Materiality Matrix Disclosed -


organization. Graph
Sustainability Report 2015 111

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -22 The effect of any restatements of - Not Disclosed The 2015 Egbin Sustainability
information provided in previous reports, and report is the maiden edition;
the reasons for such restatements. therefore, no statements were
made in the previous reports,
because this is the first.

G4 -23 Significant changes from previous reporting - Not Disclosed The 2015 Egbin Sustainability
periods in the Scope and Aspect Boundaries. report is the maiden edition,
therefore, no changes were made
in the previous reports, because
this is the first

STAKEHOLDER ENGAGEMENT

G4 -24 List of stakeholder groups engaged by the Our Stakeholders Disclosed -


organization.

G4 -25 The basis for identification and selection of - Disclosed Regulatory requirements and
stakeholders with whom to engage. compliance.
The Nigerian Electric Power Sector
Reform Act 2005.
Corporate Social Responsibility.
The Nigerian Grid Code.
The sustainability of Egbin power
generation business.

G4 -26 The organizations approach to stakeholder Community Relations Disclosed -


engagement.

G4 -27 Key topics and concerns that have been Stakeholders Disclosed -
raised through stakeholder engagement, Engagement
and how the organization has responded to
those key topics and concerns.
Sustainability Report 2015 112

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

REPORT PROFILE

G4 -28 Reporting period (such as fiscal or calendar Commitment to Disclosed -


year) for information provided. Sustainability

G4 -29 Date of most recent previous report (if any). - Not Disclosed The 2015 Egbin Sustainability
report is the maiden edition;
therefore, no date of most recent
previous report was given.

G4 -30 Reporting cycle (such as annual, biennial). - Disclosed Annual

G4 -31 The contact point for questions regarding - Disclosed Corporate Governance and
the report or its contents. Compliance Department, Egbin
Power PLC,
corp.gov@egbin-power.com or
expressyourself@egbin-power.com

G4 -32 The in accordance option the organization - Disclosed Core Option


has chosen.

G4 -33 Sustainability Report Assurance. - Not Disclosed The 2015 Egbin Sustainability
Report is the maiden edition and
doesnt have a previous report as
point of reference. However, Egbin
subsequently intend to externally
assure our sustainability reports
for data integrity.

GOVERNANCE
Sustainability Report 2015 113

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -34 The governance structure of the Board of Directors Disclosed -


organization, including committees of the
highest governance body. The
committees responsible for decision-making
on economic, environmental and social
impacts.

G4 -35 The process for delegating authority for Not Applicable to Core In
economic, environmental and social topics Accordance Option.
from the highest governance body to senior
executives and other employees.

G4 -36 Whether the organization has appointed an Not Applicable to Core In


executive-level position or positions with Accordance Option.
responsibility for economic, environmental
and social topics, and whether post holders
report directly to the highest governance
body.

G4 -37 Processes for consultation between - - Not Applicable to Core In


stakeholders and the highest governance Accordance Option.
body on economic, environmental and social
topics. If consultation is delegated, describe
to whom and any feedback processes to the
highest governance body.

G4 -38 The composition of the highest governance - - Not Applicable to Core In


body and its committees. Accordance Option.

G4 -39 Whether the Chair of the highest governance - - Not Applicable to Core In
body is also an executive officer (and, if so, Accordance Option.
his or her function within the organizations
management and the reasons for this
arrangement).
Sustainability Report 2015 114

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -40 The nomination and selection processes - - Not Applicable to Core In


for the highest governance body and Accordance Option.
its committees, and the criteria used
for nominating and selecting highest
governance body members.

G4 -41 Processes for the highest governance body - - Not Applicable to Core In
to ensure conflicts of interest are avoided Accordance Option.
and managed. Report whether conflicts of
interest are disclosed to stakeholders.

G4 -42 The highest governance bodys and senior - - Not Applicable to Core In
executives roles in the development, Accordance Option.
approval, and updating of the organizations
purpose, value or mission statements,
strategies, policies, and goals related to
economic, environmental and
social impacts.

G4 -43 The measures taken to develop and enhance - - Not Applicable to Core In
the highest governance bodys collective Accordance Option.
knowledge of economic, environmental and
social topics.

G4 -44 The processes for evaluation of the highest - - Not Applicable to Core In
governance bodys performance with Accordance Option.
respect to governance of economic,
environmental and social topics.

G4 -45 The highest governance bodys role in the - - Not Applicable to Core In
identification and management of economic, Accordance Option.
environmental and social
impacts, risks, and opportunities.
Sustainability Report 2015 115

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -46 The highest governance bodys role - - Not Applicable to Core In


in reviewing the effectiveness of the Accordance Option.
organizations risk management processes
for economic, environmental and social
topics.

G4 -47 The frequency of the highest governance - - Not Applicable to Core In


bodys review of economic, environmental Accordance Option.
and social impacts, risks, and opportunities.

G4 -48 The highest committee or position - - Not Applicable to Core In


that formally reviews and approves the Accordance Option.
organizations sustainability report and
ensures that all material Aspects are covered.

G4 -49 The process for communicating critical - - Not Applicable to Core In


concerns to the highest governance body. Accordance Option.

G4 -50 The nature and total number of critical - - Not Applicable to Core In
concerns that were communicated to Accordance Option.
the highest governance body and the
mechanism(s) used to address and resolve
them.

G4 -51 The remuneration policies for the highest - - Not Applicable to Core In
governance body and senior executives. Accordance Option.

G4 -52 The process for determining remuneration. - - Not Applicable to Core In


Report whether remuneration consultants Accordance Option.
are involved in determining
remuneration and whether they are
independent of management. Report any
other relationships which the remuneration
consultants have with the organization.
Sustainability Report 2015 116

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -53 How stakeholders views are sought - - Not Applicable to Core In


and taken into account regarding Accordance Option.
remuneration, including the results of votes
on remuneration policies and proposals, if
applicable.

G4 -54 the ratio of the annual total compensation - - Not Applicable to Core In
for the organizations highest-paid individual Accordance Option.
in each country of significant
operations to the median annual total
compensation for all employees (excluding
the highest-paid individual) in the same
country.

G4 -55 The ratio of percentage increase in annual - - Not Applicable to Core In


total compensation for the organizations Accordance Option.
highest-paid individual in each
country of significant operations to the
median percentage increase in annual total
compensation for all employees (excluding
the highest-paid individual) in the same
country.

ETHICS AND INTEGRITY

G4 -56 The organizations values, principles, Corporate Disclosed -


standards and norms of behaviour such as Governance
codes of conduct and codes of ethics.
Sustainability Report 2015 117

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -57 The internal and external mechanisms - - Not Applicable to Core In


for seeking advice on ethical and lawful Accordance Option.
behaviour, and matters related to
organizational integrity, such as helplines or
advice lines.

G4 -58 The internal and external mechanisms for - - Not Applicable to Core In
reporting concerns about unethical or Accordance Option.
unlawful behaviour, and matters related
to organizational integrity, such as escalation
through line management, whistleblowing
mechanisms or hotlines.

ELECTRIC UTILITIES SECTOR DISCLOSURES


ECONOMIC

Economic Performance

G4 EC1 Direct economic value generated and Statement of Value Disclosed -


distributed. Added

G4 EC2 Financial implications and other risks and Impact of Climate Disclosed The financial implications were not
opportunities for the organizations activities Change on our stated because the management
due to Climate change. Business of Egbin Power Plc is still
reviewing the long term impacts
of climate change on our business
operations. However, the risks and
opportunities were disclosed.
Sustainability Report 2015 118

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EC3 Coverage of the organizations defined - Disclosed Egbin maintains a defined


benefit plan obligations. contribution Pension Scheme
in accordance with the Pension
Reform Act, 2004. Based on the
reviewed Pension Reform Act,
2014, the contribution by the
employer and the employee was
reviewed to a contribution of
10% and 8% respectively of the
employees monthly emolument.
The scheme covers 100% of the
pension benefit and liabilities.
Contribution is employer 10% and
employee 8% respectively of the
employees monthly emolument.
The participation in retirement
plans is mandatory, as it is guided
by act of parliament (Pension Act
2014 reviewed).

G4 EC4 Financial assistance received from - Disclosed Pioneer status application is still
government. in progress (when completed will
give the company tax relief for 3
years in the first instance)

Market Presence

G4 EC5 Ratios of standard entry level wage by Our People Disclosed Current ratio of standard entry
gender compared to local minimum wage at level to local minimum wage level
significant locations of operation. is about 8:1
Sustainability Report 2015 119

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EC6 Proportion of senior management hired from - Not Disclosed Non in employment
the local community at significant locations
of Operation.

Indirect Economic Impacts

G4 EC7 Development and impact of infrastructure Project Investments Disclosed -


investments and services supported. Community Relations
Growth of Local
Economy

G4 EC8 Significant indirect economic impacts, Growth of Local Disclosed The rating of Bloomberg has
including the extent of impacts. Economy made Nigeria one of the most
Materiality Graph desired countries for foreign direct
Rebranding of the investment. Because of the above
Organization and other improvement, Nigeria
Business was rated one of the 20 fastest
Sustainability growing economies in 2015 by
Bloomberg at the rate of 4.9%.

Procurement Practices

G4 EC9 Proportion of spending on local suppliers at Value Added Disclosed -


significant locations of operation. Statement
Procurement
Practices
Growth of the Local
Economy

Availability and Reliability


Sustainability Report 2015 120

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

Former EU - 6 Management approach to ensure short Project Investments Disclosed -


and long-term electricity availability and Availability and
reliability. Reliability

EU - 10 Planned Capacity Against Projected Investment Plans Disclosed -


Electricity Demand Over the Long Term, for Third Year of
broken down by energy source and Takeover - 2016
regulatory regime.

Demand Side Management

Former EU - 7 Demand-side management programs - Not Disclosed Egbin is a power generation


including residential, commercial, company and due to the
institutional and industrial programs. structure of the Nigerian power
industry, does not interface with
residential, industrial, institutional
and commercial customers, thus
Egbin does not have demand-
side management programs.
The Transmission Company
of Nigeria and the electricity
distribution companies possess the
information.

Research and Development

Former EU - 8 Research and development activity and - Not Disclosed Egbin does not yet have a full
expenditure aimed at providing reliable fledge Research and Development
electricity and promoting sustainable department/unit. However, the
development. task of research and development
is presently assigned to the
Technical Operation department,
pending the establishment of the
R&D unit.
Sustainability Report 2015 121

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

Plant Decommissioning

Former EU - 9 Provisions for decommissioning of nuclear - Not Disclosed Egbin is a dual (natural gas
power sites. and heavy fuel oil) fired steam
power plant whose sixth unit
was commissioned in 1989,
therefore Egbin is still very
much within its design-life and
has not been recommended for
decommissioning at this point in
time. Moreover, a life-extension
program was performed on three
out of six units in 2015.

System Efficiency

EU - 11 Average Generation Efficiency of Thermal Improved Plant Disclosed -


Plants by Energy Source and by Regulatory Efficiency
Regime.

EU - 12 Transmission and distribution losses as a - Disclosed According to the Nigerian


percentage of total energy. Electricity Market Rule,
Transmission losses of 8.05%
(439,968.364 MWh) were
recorded in 2015. Egbin is a power
generation company, which
interfaces with the Transmission
Company of Nigeria for wheeling
of power to the grid at high
voltage (330KV), therefore doesnt
have distribution losses.
Sustainability Report 2015 122

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

ENVIRONMENT

Materials

G4 EN1 Materials used by weight or volume - Not Disclosed The information is not currently
being recorded. Systems will be
put in place to collate this data in
the nearest future.

G4 EN2 Percentage of materials used that are - Not Disclosed The information is not currently
recycled input materials. being recorded. Systems will be
put in place to collate this data in
the nearest future.

Energy

G4 EN3 Energy consumption within the organization. - Disclosed Total fuel (natural gas) consumed:
1,041,235,306.55kg (57,899mmscf)
Total electricity consumption:
316,524,990KWh
Total electricity sold:
5,148,924.03MWh
Total energy consumption:
1,164,594.600MJ

G4 EN4 Energy consumption outside of the - Disclosed Energy consumed by Transmission


organization. Company of Nigeria, Cyrex Ltd,
Nigerian Gas Company, Housing
colony and community health
centre. (746,773,200KJ)
Sustainability Report 2015 123

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN5 Energy intensity - Disclosed Energy intensity ratio: 6.67mwh/


employee
The organization-specific metric
(the ratio denominator) chosen to
calculate the ratio: Number of full
time employee of Egbin Power as
at December 2015.
Type of energy included in the
intensity ratio: Electricity.
Ratio used energy consumed
within the organization.

G4 EN6 Reduction of energy consumption. International Disclosed -


Operating Standards

G4 EN7 Reductions in energy requirements of International Disclosed -


products and services. Operating Standards

Water

G4 EN8 Total water withdrawal by source. - - Surface Water: 32,660m3 per hour
per unit.
Groundwater: 300m3 per hour
(i.e.75m3 per well from 4 wells)

G4 EN9 Water sources significantly affected by - Not Disclosed The information is not currently
withdrawal of water. being recorded. Systems will be
put in place to collate this data in
the nearest future.

G4 EN10 Percentage and total volume of water - Disclosed 47% (450x5 units x100/4800 (i.e.
recycled and reused. 300x16hrs of running wells)
Assumptions: 5units on load and
wells running for 16hrs
Sustainability Report 2015 124

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

Biodiversity

G4 EN11 Operational sites owned, leased, managed - Not Disclosed The information is not currently
in, or adjacent to, protected areas and areas available. This data will be collated
of high biodiversity value outside protected and disclosed in subsequent
areas. reports.

G4 EN12 Description of significant impacts of Conservation of Disclosed -


activities, products, and services on Biodiversity
biodiversity in protected areas and areas of
high biodiversity value outside protected
areas.

G4 EN13 Habitats protected or restored. - Partially No habitat was restored in the


Disclosed reporting year 2015.

G4 EN14 Total number of IUCN red list species and - Not Disclosed Egbin does not have the total
national conservation list species with number of IUCN red list species
habitats in areas affected by operations, by and national conservation list
level of extinction risk. species affected by our operations
at the moment.

EU13 Biodiversity of offset habitats compared to - Not Disclosed The information is not currently
the biodiversity of the affected areas. available. This data will be collated
and disclosed in subsequent
reports.

Emissions
Sustainability Report 2015 125

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN15 Direct greenhouse gas (GHG) emissions Green House Gas Disclosed 2.86 million metric tons of CO2
(scope 1). Management was released in the year 2015. (The
gases included in the calculation
are CH4, O2 and CO2.
Egbin does not yet have in place a
system to measure biogenic CO2.
No base year was chosen to
measure the sustainability
performance of Egbin with respect
to emissions, because the 2015
Egbin sustainability report is our
maiden edition.

G4 EN16 Energy indirect greenhouse gas (GHG) - Not Disclosed Egbin does not yet have the
emissions (scope 2). system in place to adequately
measure indirect greenhouse
gas emissions, as emissions from
the consumption of electricity,
heat and steam are not presently
available.

G4 EN17 Other indirect greenhouse gas (GHG) - Not Disclosed Presently, Egbin does not have
emissions (scope 3). the data to measure indirect
emissions, such as the extraction
and production of purchased
materials and fuels, transport-
related activities in vehicles not
owned or controlled by Egbin,
electricity-related activities (e.g.
T&D losses) not covered in Scope
2, outsourced activities, waste
disposal, etc.
Sustainability Report 2015 126

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN18 Greenhouse gas (GHG) emissions intensity. - Disclosed GHG Emission Intensity Ratio:
0.145kg of CO2 per mega Joules of
energy generated.
Specific metric for calculation:
GHG emission intensity = metric
tons of CO2 / energy generated in
mega joules.
GHG emissions type: Only Scope 1
The calculation of the GHG
emission intensity was based on
only the mass of CO2 gas.

G4 EN19 Reduction of greenhouse gas (GHG) Greenhouse Gas Partially Egbin does not yet have in place
emissions. Management Disclosed systems to accurately determine
the amount of reduction in GHG
emissions. However, initiatives
were taken to lower GHG.

G4 EN20 Emissions of ozone-depleting substances Greenhouse Gas Disclosed -


(ODS). Management

G4 EN21 NOx, SOx, and other significant air emissions. - Not Disclosed All through the year, Egbin
NOx, SOx and other emissions
were measured by our flue gas
analyzers to be negligible far
below the LASEPA standard of
132ppm and FEPA 500ppm.

Effluents and Waste


Sustainability Report 2015 127

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN22 Total water discharge by quality and - Disclosed Planned and unplanned water
destination. discharges:
1000m3 discharged per day to
Lagoon.
732m3 regeneration waste water
discharged to lagoon after every
regeneration
Quality of Water and Treatment
method
pH of waste water always between
6.0 - 9.0 before discharged to
lagoon.
Neutralization process was used to
ensure the pH is within acceptable
limits.

G4 EN23 Total weight of waste by type and disposal - Disclosed An estimated value of 936 tons
method. of waste was disposed in 2015.
All the different types of waste
generated within the Egbin facility
is professionally handled by the
Lagos State Waste Management
Agency.

G4 EN24 Total number and volume of significant spills. Oil Spill Management Disclosed -

G4 EN25 Weight of transported, imported, exported, - Not Disclosed No waste was imported, exported
or treated waste deemed hazardous under or transported internationally
the terms under the terms of Basel
Of the Basel convention annex i, ii, iii, and convention in the year 2015.
viii, and percentage of transported waste
shipped
Internationally.
Sustainability Report 2015 128

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN26 Identity, size, protected status, and Conservation of Partially Egbin does not yet have the
biodiversity value of water bodies and Biodiversity Disclosed biodiversity value of protected
related habitats significantly affected by species. Also, the Lagos lagoon
the organizations discharges of water and has not been designated a
runoff. nationally or internationally
protected area.

Products and Services

G4 EN27 Extent of impact mitigation of environmental - Not Disclosed Egbin have no data to
impacts of products and services. quantitatively describe the extent
to which environmental impacts of
electricity have been mitigated in
the year 2015.

G4 EN28 Percentage of products sold and their - Not Disclosed Egbin is a power generation
packaging materials that are reclaimed by company, therefore does not
category. package its products with
materials that are detrimental to
the environment.

Compliance

G4 EN29 Monetary value of significant fines and total Environmental Disclosed None
number of non-monetary sanctions for Infringement
noncompliance
With environmental laws and regulations.

Transport
Sustainability Report 2015 129

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 EN30 Significant environmental impacts of - Not Disclosed Egbin have no system in place to
transporting products and other goods and collate the data that describes
materials for the organizations operations, the environmental impacts of
and transporting members of the workforce. transporting products and other
goods and materials.

Overall

G4 EN31 Total environmental protection expenditures - Disclosed Waste disposal, emissions


and investments by type. treatment, and remediation costs:
N18.2 million
Prevention and environmental
management costs:
N15 million

Supplier Environmental
Assessment

G4 EN32 Percentage of new suppliers that were - Not Disclosed Egbin does not yet have a system
screened using environmental criteria. in place to screen suppliers using
environmental criteria.

G4 EN33 Significant actual and potential negative - Not Disclosed Egbin does not yet have a system
environmental impacts in the supply chain in place to screen suppliers using
and actions taken. environmental criteria.

Environmental Grievance
Mechanisms

G4 EN34 Number of grievances about environmental Environmental Disclosed None


impacts filed, addressed, and resolved Infringement
through formal grievance mechanisms.
Sustainability Report 2015 130

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

SOCIAL
Labour Practices and Decent Work

Employment

G4 LA1 Total number and rates of new employee Our People Disclosed Employee Turnover by Age Group:
hires and employee turnover by age group, 0.77% (All male, Nigerians, 60
gender and Region. years and above)

G4 LA2 Benefits provided to full-time employees Our People Disclosed Significant Location of Operation:
that are not provided to temporary or part- Egbin (A town in Ikorodu Local
time Employees, by significant locations of Government of Lagos State, South
operation. West Nigeria)
Sustainability Report 2015 131

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 LA3 Return to work and retention rates after - Disclosed Employees that were entitled to
parental leave, by gender. parental leave:
Male: 356 Female 37
Employees that took parental
leave:
Male: 1 Female: 1
Employees who returned to work
after parental leave ended:
Male: 1 Female: 1
Employees who returned to work
after parental leave
ended, who were still employed
twelve months after their return to
work:
Male: 1 Female 2
Return to work and retention rates
of employees who took parental
leave, by gender:
Male: 1 Female: 4

Former EU14 Programs and processes to ensure the Our People Disclosed -
availability of a skilled workforce. Training and
Development

EU15 Percentage of employees eligible to retire in Our People Disclosed -


the next 5 and 10 years broken down by job
category
and by region.

Former EU16 Policies and requirements regarding health Our Commitment to Disclosed -
and safety of employees and employees of Safety
contractors and subcontractors.
Sustainability Report 2015 132

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

EU17 Days worked by contractor and Business Disclosed -


subcontractor employees involved in Sustainability
construction, operation & Maintenance
activities.

EU18 Percentage of contractor and subcontractor Health, Safety and Disclosed -


employees that have undergone relevant Security of our
health and safety training. people

Labour/management relations

G4 LA4 Minimum notice periods regarding - Not Disclosed- There are no provisions in the
operational changes, including whether contract with our contractorsXXX
these are specified in collective agreements.

Occupational Health and Safety

G4 LA5 Percentage of total workforce represented in Our Commitment to Disclosed -


formal joint managementworker health and Safety
safety committees that help monitor and
advise on occupational health and safety
programs.
Sustainability Report 2015 133

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 LA6 Type of injury and rates of injury, - Not Disclosed Type of injury recorded last year
occupational diseases, lost days, and were minor injury of first aid cases
absenteeism, and total number of work- (FAC). Details of the injury rate,
related fatalities, by region and by gender occupational disease rate, lost
days rates etc. are not available at
the moment due to unavailability
of the monthly health record
statistics of employees that should
be sent to HSE office by our
hospital management organization
(HMO). However, we had no record
of fatality.

G4 LA7 Workers with high incidence or high risk of - Not Disclosed Details are not available at the
diseases related to their occupation moment as Egbin did not have
medical records of such.

G4 LA8 Health and safety topics covered in formal Our Commitment to Disclosed -
agreements with trade unions Safety

Training and Education


Sustainability Report 2015 134

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 LA9 Average hours of training per year per Training and Disclosed Average hours of training that the
employee by gender, and by employee Development organizations employees have
category. undertaken:
Gender:
Male: 17,278.5 hours. Female:1849.5
hours
Employee Category:
JG 1 = 48.67 hours
JG 3 = 146 hours
JG 4 = 778.7 hours
JG 5 = 973.4 hours
JG 6 = 2,530.9 hours
JG 7 = 3,115 hours
JG 8 = 4,040 hours
JG 9 = 2,287.6 hours
JG 10 = 4,040 hours
JG 11 = 97.3 hours
JG 12 = 1,071 hours
(JG Job Grade: This is the
system applied by Egbin for the
categorization of its workforce)
Sustainability Report 2015 135

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 LA10 Programs for skills management and - Disclosed Workshop on Time and Stress
lifelong learning that support the continued Management.
employability of employees and assist them Workshops on MS Suites (Basic
in managing career endings. and Intermediate classes)
Workshop on Nigerian Taxes.
Refresher course for Basic Thermal
Operations.
Workshop on Personal
Development at work.
Workshop on Coaching and
Mentoring Staff.
Workshop On Strategic Thinking,
Planning and Execution.
Workshop Ethics, Attitude and
Productivity Improvement.
Workshop Ethics, Attitude and
Productivity Improvement.

G4 LA11 Percentage of employees receiving regular Our People Disclosed -


performance and career development
reviews, by Gender and by employee
category.

Diversity and Equal Opportunity

G4 LA12 Composition of governance bodies and Executive Disclosed Table showing details of Egbin
breakdown of employees per employee Management Management team responsible
category according for the management of the daily
To gender, age group, minority group operations of the plant
membership, and other indicators of
diversity.

Equal Remuneration for Women and Men


Sustainability Report 2015 136

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 LA13 Ratio of basic salary and remuneration of Our People Disclosed The ratio is 1:1 and it is the same for
women to men by employee category, by all levels irrespective of the gender.
significant locations of operation XXX

Supplier Assessment for Labour Practices

G4 LA14 Percentage of new suppliers that were - Not Disclosed An accurate value is not available
screened using labour practices criteria. at the moment; however, the
suppliers were screened using the
following requirements;
Ensure that suppliers have a Group
life assurance for the workers.
Provision of HMO for the workers
or Medical Re-imbursement.

G4 LA15 Significant actual and potential negative - Not Disclosed The information is not currently
impacts for labour practices in the supply available. This data will be collated
chain and actions taken. and disclosed in subsequent
reports.

G4 LA16 Number of grievances about labour practices - Disclosed None


filed, addressed, and resolved through formal
Grievance mechanisms.

Human Rights

Investment
Sustainability Report 2015 137

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 - HR1 Total number and percentage of significant - Not Disclosed All investment agreements and
investment agreements and contracts that contracts underwent the Egbin
include in-house human right screening
Human rights clauses or that underwent process as stipulated in the Egbin
human rights screening. Human Rights policy. However,
Egbin does not have the accurate
value for this disclosure at this
point in time.

G4 HR2 Total hours of employee training on human - Not Disclosed Employee trainings on human
rights policies or procedures concerning rights were not conducted in the
aspects of reporting year 2015.
Human rights that are relevant to operations,
including the percentage of employees
trained.

Non discrimination

G4 HR3 Total number of incidents of discrimination - Disclosed None


and corrective actions taken.

Freedom of Association and Collective Bargaining

G4 HR4 Operations and suppliers identified in which - Disclosed None


the right to exercise freedom of association
and collective bargaining may be violated
or at significant risk, and measures taken to
support these rights.

Child Labour
Sustainability Report 2015 138

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 HR5 Operations and suppliers identified as having - Disclosed None


significant risk for incidents of child labour,
and measures taken to contribute to the
effective abolition of child labour.

Forced or Compulsory Labour

G4 HR6 Operations and suppliers identified as - Disclosed None


having significant risk for incidents of forced
or compulsory labour, and measures to
contribute to the elimination of all forms of
forced or
compulsory labour.

Security Practices

G4 HR7 Percentage of security personnel trained in - Disclosed Egbin employed the services of a
the organizations human rights policies or third party company to ensure the
procedures that are relevant to operations. safety and security of the facility
and the environs. The third party
company reports that 100% of its
security personnel have undergone
human rights trainings.

Indigenous Rights

G4 HR8 Total number of incidents of violations - Disclosed None


involving rights of indigenous peoples and
actions taken.

Assessment
Sustainability Report 2015 139

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 HR9 Total number and percentage of operations - Disclosed None


that have been subject to human rights
reviews or
Impact assessments.

Supplier Human Rights Assessment

G4 - HR10 Percentage of new suppliers that were - Disclosed None at the moment.
screened using human rights criteria.

G4 - HR11 Significant actual and potential negative - Disclosed None at the moment.
human rights impacts in the supply chain
and actions taken.

Human Rights Grievance Mechanisms

G4 - HR12 Number of grievances about human rights Addressing Egbin, Disclosed -


impacts filed, addressed, and resolved Ipakan and Ijede
through formal grievance mechanisms. Grievances

Society

Local Communities

G4 -SO1 Percentage of operations with implemented Addressing Egbin, Partially Percentage of operations and
local community engagement, impact Ipakan and Ijede Disclosed impact assessment is not yet
assessments, and development programs. Grievances available.

G4 -SO2 Operations with significant actual and Addressing Egbin, Disclosed -


potential negative impacts on local Ipakan and Ijede
communities. Grievances
Sustainability Report 2015 140

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -SO3 Total number and percentage of operations - Not Disclosed Egbins anti-corruption and anti-
assessed for risks related to corruption and bribery policy framework was still
the significant risks identified. being reviewed by the board of
directors as at 31 December 2015.

G4 -SO4 Communication and training on anti- - Not Disclosed Egbins anti-corruption and anti-
corruption policies and procedures. bribery policy framework was still
being reviewed by the board of
directors as at 31 December 2015.

G4 -SO5 Confirmed incidents of corruption and - Disclosed No confirmed incident of


actions taken. corruption and action was
recorded in the reporting year
2015.

Former EU19 Stakeholder participation in decision making - Not Disclosed Egbin is currently working on
processes related to energy planning and the Egbin strategic document
infrastructure development. which will capture the processes
and procedures for stakeholder
participation.

Former EU20 Approach to managing the impacts of The construction of Egbin power
displacement. plant commenced in 1983 and was
completed in 1989. Back then, the
plant was owned by the Federal
Government of Nigeria, therefore
all forms of re-settlements and
compensation to the locals for the
impacts of the construction of the
power plant, was systematically
carried out.
Sustainability Report 2015 141

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

Former EU21 Contingency planning measures, disaster/ Disaster and Disclosed -


emergency management plan and training Emergency Planning
programs, and recovery/restoration plans. and Response

EU22 Number of people physically or economically - Not Disclosed The records of the displaced
displaced and compensation, broken down people from their lands
by type of project. when Egbin power plant was
constructed in 1983 is not with
Egbin Power Plc at this point in
time, as these records may be
in the possession of the relevant
government agency when the
power plant was still owned by the
Federal Government of Nigeria.

Public Policy

G4 -SO6 Total value of political contributions by - Disclosed None


country and recipient/beneficiary.

Anti-Competitive Behaviour

G4 -SO7 Total number of legal actions for anti- - Disclosed None


competitive behaviour, anti-trust, and
monopoly practices and their outcomes.

Compliance

G4 -SO8 Monetary value of significant fines and total - Disclosed None


number of non-monetary sanctions for
noncompliance
with laws and regulations.

Supplier Assessment for Impacts on Society


Sustainability Report 2015 142

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -SO9 Percentage of new suppliers that were - Disclosed None, as this system was not in
screened using criteria for impacts on place in the reporting year 2015.
society.

G4 -SO10 Significant actual and potential negative - Not Disclosed In the reporting year 2015, no
impacts on society in the supply chain and supplier was penned down to have
actions taken. significant actual and potential
negative impact on the society
with respect to our supply chain
management system.

Grievance Mechanisms for Impacts on Society

G4 -SO11 Number of grievances about impacts on - Disclosed None was filed in the reporting
society filed, addressed, and resolved year 2015.
through formal grievance mechanisms.

Product Responsibility

Customer Health and Safety

G4 -PR1 Percentage of significant product and - Not Disclosed None, as Egbin Power Plc is a
service categories for which health power generation company,
and safety impacts are assessed for therefore does not manufacture a
improvement. product whose cycle life may pose
risk to the general public.

G4 -PR2 Total number of incidents of non-compliance - Disclosed None.


with regulations and voluntary codes
concerning
the health and safety impacts of products
and services during their life cycle, by type
of outcomes.
Sustainability Report 2015 143

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

EU25 Number of injuries and fatalities to the public - Disclosed None


involving company assets including legal
judgments,
settlements and pending legal cases of
diseases.

Access

Former EU23 Programs, including those in partnership - Disclosed Considering the fact that Egbin
with government, to improve or maintain power plant is situated in Lagos
access to electricity and customer support -the economic nerve centre of
service. Nigeria, there are plans with the
Federal Ministry of Power, to
dedicate unit 6 to serve the Lagos
metropolis, therefore boosting
economic activities in the state.

EU26 Percentage of population unserved in - Not Disclosed Due to structure of the Nigerian
licensed distribution or service areas power industry, Egbin is only
licensed to generate electricity.
Thus, Egbin are not in custody
of the data with respect to
transmission and distribution
infrastructure, and may not be able
to estimate overall and unserved
population.

EU27 Number of residential disconnections for - Not Disclosed Egbin Power Plc is a power
non-payment, broken down by duration of generation company, and therefore
disconnection does not interface directly
And by regulatory regime with residential, commercial, or
industrial electricity consumers.
Sustainability Report 2015 144

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

EU28 Power outage frequency - Not Disclosed Due to the structure of the
Nigerian power industry, Egbin
who is a power generation
company, does not have in its
possession the accurate number of
customers served. This information
is domiciled at the electricity
distribution companies and the
transmission company. Therefore,
we cannot at the moment,
accurately calculate the System
Average Interruption Frequency
Index (SAIFI).

EU29 Average power outage duration - Not Disclosed The six units were down for
16707.52 hours in the year 2015.

EU30 Average plant availability factor by energy - Disclosed The number of hours of planned
source and by regulatory regime outage: 744 hours
The number of hours of forced
outage: 265.91 hours.
Average availability factor: 47%.

Provision of Information
Sustainability Report 2015 145

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

Former EU24 Practices to address language, cultural, Egbin Power Plc generates and
low literacy and disability related barriers wheels out power into the national
to access and safely use electricity and grid in a contained facility that
customer support services is accessible to only authorized
personnel and screened visitors.
Therefore, Egbin does not
relate directly or indirectly with
electricity consumers. However,
our signage labeling and safety
warnings are written in English
and Korean, which are the official
languages of Nigeria and South
Korea our technical partner.

Product and Service Labeling

G4 -PR3 Type of product and service information - Not Disclosed Egbin Power Plc is a power
required by the organizations procedures for generation company and does
product not produce packaged products
and service information and labelling, and services that may need to be
and percentage of significant product labelled.
and service categories subject to such
information requirements

G4 -PR4 Total number of incidents of non-compliance - Disclosed None


with regulations and voluntary codes
concerning
product and service information and
labelling, by type of outcomes
Sustainability Report 2015 146

GRI G4 Disclosure Disclosure Disclosure Direct Response


Disclosure Number Definition Location In Report Status Clarification
Status

G4 -PR5 Results of surveys measuring customer - Not Disclosed Egbin Power Plc is a power
satisfaction generation company, therefore
does not interface directly
with residential, commercial, or
industrial electricity consumers.

Marketing Communications

G4 -PR6 Sale of banned or disputed products - Disclosed None

G4 -PR7 Total number of incidents of non-compliance - Disclosed None


with regulations and voluntary codes
concerning
Marketing communications, including
advertising, promotion, and sponsorship, by
type of outcomes

Customer Privacy

G4 -PR8 Total number of substantiated complaints - Disclosed None


regarding breaches of customer privacy and
losses of
customer data

Compliance

G4 -PR9 Monetary value of significant fines for - Disclosed None


non-compliance with laws and regulations
concerning the provision and use of
products and services
Sustainability Report 2015 148

www.egbin-power.com