Nigeria will hit 5000 megawatts soon, El-Sudi
By Emma Ujah, Daniel Idonor & Inalegwu Shaibu
ABUJA - Barely three days after the Federal Government uncovered the poor management of the failed N30 billion Olorunsogo power station by a Chinese firm, the Minister of Power, Prof. Barth Nnaji, Wednesday ordered the immediate removal of the Chief Executive Officer, CEO, Mr Mohammed Almu. Vanguard investigation revealed that the embattled CEO is now to work in the Power Holding Company of Nigeria, PHCN, Abuja head office, where he would be monitored closely.
The government is piqued that Almu, who until his recall to the headquarters in Abuja, an acting CEO, failed to articulate what was required to recover the six of the eight turbines in the station that have since broken down, thereby reducing the installed capacity of the plant from 304 to 60 megawatt of electricity.
Nnaji, who was on an inspection tour of the plant, in company of his Information counterpart, Mr Labaran Maku, had expressed disappointment over the inability of the management led by the CEO to provide the inspectors with adequate information on the company.
Besides, the inspection team was also told that every move and attempt by the Nigerian engineers attached to the Chinese experts to acquire the requisite skills for the maintenance of the plants were usually frustrated by the foreigners, just as the Nigerians at the plant could not lay hands on the agreement documents to ascertain at what point their responsibilities begin and end.
The Minister said "we got here (Olorunsogo) and we are scratching for information. I don't like it and we will do something about that because what we want is ability to ensure that things keep on going. It requires resourcefulness to get things done.”
How can we be in a situation where the total amount of money needed here is nothing in comparison to just one problem which the people in Egbin station solved . It is a lot more than all of this put together. So, for sure, we are going to do something about it to solve these problems but on the technical side, we have to do something. That is why visiting these plants is very important".
"I will say that in Olorunnsogo phase I, which is a federal government power plant we are quiet disappointed that there are eight units that should provide over 300 mw there and that of all those units only two are functioning. And what is required to actually get many of the units functioning is not just much and we are also going to look into the issue of the workers not being able to access manuals to operate the power plant. So these are some issues that we have found that we are going to resolve".
The CEO had while briefing the minister said "at the time of handing over of this project, they (Chinese) are supposed to give us two years running spare parts but what they gave us were just small spare parts and that is why we are having serious problem. And anytime we contact them, they will promise to bring the parts and up till now, they have not given us any. And any time we have a problem and we want to go with them, they will refuse to go with us and abandon the place.
Egbin N1.5bn repairs underway
Meanwhile, as promised, the Minister has reaffirmed his earlier assurance to the management of Egbin power plant of Government readiness to provide the required N1.5billion to restore 220mgw ST-06 plant at the station.
The station has 1,320 mega watts installed capacity but currently generates less than 1,000 mega watts.
The minister told Vanguard yesterday that the fund would soon be released to the indigenous engineers to enable them effect the repairs.
The CEO of Egbin station, Engr Mike Uzoigwe, while briefing the minister had requested for the fresh funding of N1.5 billion. He also said that it would take the staff ten months to restore the plant to its full capacity if provided with enough funds; adding that restoring the plant became necessary considering the strategic importance of the plant to meeting the country's power needs. He added that the 27-year old plant have five of its six Units belting power.
"Seeing your ability to repair the whole plant gives me joy and any one willing to take over the plant must come and see you. Our visit here has been quite insightful. This plant is being managed and operated by our own people with technical capacity and leadership that knows his own onions," he said.
The Minister had said, at the Egbin plant, that "I'm quiet optimistic at the progress of work at the various power stations and I am also pleased at the dedication by our workers in ensuring they do what they need to do to recover the lost capacities at the various power stations.
There are some places that we will need to do some reinforcement but overall a good work is going on. In Egbin, which actually provides about 25 per cent of the entire power in this nation, they have done very, very well in their efforts to continue to provide electricity".
Power privatisation receives a boost
Meanwhile, privatization of the nation's power sector received a boost Wednesday as the Bureau of Public Enterprises, BPE, announced the signing of Power Purchase Agreement , PPA, between the power generators and the Nigerian Bulk Electricity Trader.
Similarly, the Vesting Contract between Bulk Trader and the Distributions Companies has been signed.
The BPE said in a statement that the agreements would ensure that the Bulk Trader distributes power among the distributions companies equitably, during the transition period.
The statement signed by the Head of Communications, Mr. Chukwuma Nwoko, reads in full:
"In line with the revised transaction timeline for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN), the Bureau of Public Enterprises has released the industry agreements. They are the draft Power Purchase Agreement (PPA) and the draft Vesting Contract.
"The PPA is executed between power generators and the power off-taker. For now, the off-taker is the Nigeria Bulk Electricity Trading (NEBT) Plc. NEBT is also known as the Bulk Trader.
"The Vesting Contract is executed between the Bulk Trader and the Power Distribution Companies. It is a mechanism that is used during the transition period in the electricity industry reform to ensure that the available power is shared equitably among the Distribution Companies.
"Recall that on August 16, 2011, President Goodluck Jonathan had approved the pioneer Board of the Bulk Trader and also named Mr. Rumundaka Wonodi, as its pioneer Chief Executive Officer. The Minister of Finance is the Chairman of the Board of NEBT. The Board of NEBT was inaugurated on Tuesday, August 23, 2011 by the President.
"Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has released the revised version of the Multi-Year Tariff Order (MYTO 2.) The document is available on the website of the electricity regulator.
"It is apt to point out that the divestiture strategy for the privatization of the distribution companies will be built around the MYTO. MYTO 2 will stipulate the annual investment requirement, allowable operational expenditure, approved rate of return on equity and other allowable expenses for each distribution company".
Nigeria will hit 5000 megawatts soon, El-Sudi
In a related development a member of the House Representatives representing Sardauna/Gashaka/Kurmi Federal Constituency of Taraba state, Hon. Ibrahim Tukur El-Sudi has said that Nigeria is on course to attain 5000 megawatts electricity generation upon the completion of the Mambilla Hydro Power project.
EL-Sudi, who spoke to newsmen in Abuja assured that 5000 megawatts electricity is possible based upon the commitments extracted from President Goodluck Jonathan to accelerate the completion of the Mambilla Hydro Power Project that is capable of generating about 6000 megawatts of electricity in the country.
He however lamented the absence of federal presence in his constituency, adding that he will use his position to facilitate massive infrastructural development to the area in the present dispensation.
He said the Mambilla power project would help solve the nation's power problems, and enhance the actualisation of the economic vision 2020 agenda.
He said, "The potentiality of the Mambilla Hydro-electric power project is capable of generating 6000 mega watts. As at now, the entire country is consuming less than 4000 mega watts. I am very much interested in the project because it will generate a lot of revenue for our people. It will open up that area. Therefore, I am not going to relent in my effort to ensure that the project comes to life.
"In the past so much money was pumped into the project but the resources went down the drain. This time, I can assure you that the Federal Government under President Goodluck Jonathan is committed to the project. Jonathan is serious about revamping power in this country and I believe the Mambilla project is not going to be business as usual or a political gimmick," he said.
El-Sudi also assured proper monitoring of the project by the House of Representatives to ensure full implementation of the Hydro-electric Power Producing Areas Development Commission (HYPADDEC) Act.
By Emma Ujah, Daniel Idonor & Inalegwu Shaibu
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The government is piqued that Almu, who until his recall to the headquarters in Abuja, an acting CEO, failed to articulate what was required to recover the six of the eight turbines in the station that have since broken down, thereby reducing the installed capacity of the plant from 304 to 60 megawatt of electricity.
Nnaji, who was on an inspection tour of the plant, in company of his Information counterpart, Mr Labaran Maku, had expressed disappointment over the inability of the management led by the CEO to provide the inspectors with adequate information on the company.
Besides, the inspection team was also told that every move and attempt by the Nigerian engineers attached to the Chinese experts to acquire the requisite skills for the maintenance of the plants were usually frustrated by the foreigners, just as the Nigerians at the plant could not lay hands on the agreement documents to ascertain at what point their responsibilities begin and end.
The Minister said "we got here (Olorunsogo) and we are scratching for information. I don't like it and we will do something about that because what we want is ability to ensure that things keep on going. It requires resourcefulness to get things done.”
How can we be in a situation where the total amount of money needed here is nothing in comparison to just one problem which the people in Egbin station solved . It is a lot more than all of this put together. So, for sure, we are going to do something about it to solve these problems but on the technical side, we have to do something. That is why visiting these plants is very important".
"I will say that in Olorunnsogo phase I, which is a federal government power plant we are quiet disappointed that there are eight units that should provide over 300 mw there and that of all those units only two are functioning. And what is required to actually get many of the units functioning is not just much and we are also going to look into the issue of the workers not being able to access manuals to operate the power plant. So these are some issues that we have found that we are going to resolve".
The CEO had while briefing the minister said "at the time of handing over of this project, they (Chinese) are supposed to give us two years running spare parts but what they gave us were just small spare parts and that is why we are having serious problem. And anytime we contact them, they will promise to bring the parts and up till now, they have not given us any. And any time we have a problem and we want to go with them, they will refuse to go with us and abandon the place.
Egbin N1.5bn repairs underway
Meanwhile, as promised, the Minister has reaffirmed his earlier assurance to the management of Egbin power plant of Government readiness to provide the required N1.5billion to restore 220mgw ST-06 plant at the station.
The station has 1,320 mega watts installed capacity but currently generates less than 1,000 mega watts.
The minister told Vanguard yesterday that the fund would soon be released to the indigenous engineers to enable them effect the repairs.
The CEO of Egbin station, Engr Mike Uzoigwe, while briefing the minister had requested for the fresh funding of N1.5 billion. He also said that it would take the staff ten months to restore the plant to its full capacity if provided with enough funds; adding that restoring the plant became necessary considering the strategic importance of the plant to meeting the country's power needs. He added that the 27-year old plant have five of its six Units belting power.
"Seeing your ability to repair the whole plant gives me joy and any one willing to take over the plant must come and see you. Our visit here has been quite insightful. This plant is being managed and operated by our own people with technical capacity and leadership that knows his own onions," he said.
The Minister had said, at the Egbin plant, that "I'm quiet optimistic at the progress of work at the various power stations and I am also pleased at the dedication by our workers in ensuring they do what they need to do to recover the lost capacities at the various power stations.
There are some places that we will need to do some reinforcement but overall a good work is going on. In Egbin, which actually provides about 25 per cent of the entire power in this nation, they have done very, very well in their efforts to continue to provide electricity".
Power privatisation receives a boost
Meanwhile, privatization of the nation's power sector received a boost Wednesday as the Bureau of Public Enterprises, BPE, announced the signing of Power Purchase Agreement , PPA, between the power generators and the Nigerian Bulk Electricity Trader.
Similarly, the Vesting Contract between Bulk Trader and the Distributions Companies has been signed.
The BPE said in a statement that the agreements would ensure that the Bulk Trader distributes power among the distributions companies equitably, during the transition period.
The statement signed by the Head of Communications, Mr. Chukwuma Nwoko, reads in full:
"In line with the revised transaction timeline for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN), the Bureau of Public Enterprises has released the industry agreements. They are the draft Power Purchase Agreement (PPA) and the draft Vesting Contract.
"The PPA is executed between power generators and the power off-taker. For now, the off-taker is the Nigeria Bulk Electricity Trading (NEBT) Plc. NEBT is also known as the Bulk Trader.
"The Vesting Contract is executed between the Bulk Trader and the Power Distribution Companies. It is a mechanism that is used during the transition period in the electricity industry reform to ensure that the available power is shared equitably among the Distribution Companies.
"Recall that on August 16, 2011, President Goodluck Jonathan had approved the pioneer Board of the Bulk Trader and also named Mr. Rumundaka Wonodi, as its pioneer Chief Executive Officer. The Minister of Finance is the Chairman of the Board of NEBT. The Board of NEBT was inaugurated on Tuesday, August 23, 2011 by the President.
"Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has released the revised version of the Multi-Year Tariff Order (MYTO 2.) The document is available on the website of the electricity regulator.
"It is apt to point out that the divestiture strategy for the privatization of the distribution companies will be built around the MYTO. MYTO 2 will stipulate the annual investment requirement, allowable operational expenditure, approved rate of return on equity and other allowable expenses for each distribution company".
Nigeria will hit 5000 megawatts soon, El-Sudi
In a related development a member of the House Representatives representing Sardauna/Gashaka/Kurmi Federal Constituency of Taraba state, Hon. Ibrahim Tukur El-Sudi has said that Nigeria is on course to attain 5000 megawatts electricity generation upon the completion of the Mambilla Hydro Power project.
EL-Sudi, who spoke to newsmen in Abuja assured that 5000 megawatts electricity is possible based upon the commitments extracted from President Goodluck Jonathan to accelerate the completion of the Mambilla Hydro Power Project that is capable of generating about 6000 megawatts of electricity in the country.
He however lamented the absence of federal presence in his constituency, adding that he will use his position to facilitate massive infrastructural development to the area in the present dispensation.
He said the Mambilla power project would help solve the nation's power problems, and enhance the actualisation of the economic vision 2020 agenda.
He said, "The potentiality of the Mambilla Hydro-electric power project is capable of generating 6000 mega watts. As at now, the entire country is consuming less than 4000 mega watts. I am very much interested in the project because it will generate a lot of revenue for our people. It will open up that area. Therefore, I am not going to relent in my effort to ensure that the project comes to life.
"In the past so much money was pumped into the project but the resources went down the drain. This time, I can assure you that the Federal Government under President Goodluck Jonathan is committed to the project. Jonathan is serious about revamping power in this country and I believe the Mambilla project is not going to be business as usual or a political gimmick," he said.
El-Sudi also assured proper monitoring of the project by the House of Representatives to ensure full implementation of the Hydro-electric Power Producing Areas Development Commission (HYPADDEC) Act.
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