NDPHC Resumes Stalled Privatisation Exercise with Three Power Plants

Calabar, Geregu, Omotosho to be handled in first phase
Chineme Okafor in Abuja

The stalled privatisation of 10 gas power generating plants built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Projects (NIPP) will be restarted, but under a new arrangement, the Managing Director of NDPHC, Mr. Chiedu Ugbo, has disclosed.

Speaking yesterday at a power sector meeting in Abuja, Ugbo said approval for the agency to resume the privatisation process has been obtained and will now go on in three of the plants – 634 megawatts (MW) Calabar, 506mw Geregu and 513mw Omotosho power plants.

He stated that the process would now be concluded in phases, starting with these three.
“The privatisation of our power plants are still on course with three power station taken together in the first round, specifically, this process will continue with the conclusion  of on-going privatisation of Calabar, Geregu and Omotosho power stations while the Vice President and Chairman of the Board directed that Egbema power station be sold ‘As-Is’,” said Ugbo.

The NIPP privatisation which was kicked off on November 11, 2013, was stopped midway on the basis of mixed transaction flaws that included non-availability or completion of some of the plants, as well as uncertainty of gas supply arrangements to the plants, amongst others.

Ugbo however indicated that once the three are successfully privatised, the agency will move on to the others, but added that a decision on 150mw Omoku will be taken after an ongoing project audit on the plant is concluded.
“Decision on Omoku power station will be taken after the conclusion of on-going project audit of the plant.  All these strategies are designed to enable the management complete all the projects under phase one and deliver power to Nigerians.

“In a similar vein, management plan completion of Gbarian power station by firing the second unit to bring available capacity to 225mw as well as completion of Alaoji Combined Cycle Phase, this will bring additional capacity of 270mw with one block steam cycle,” Ugbo added.

He also said the permanent gas supply line to Calabar plant would be completed soon by Seven Energy and Accugas Group, who are reportedly laying a 24”x32”km Oron to Calabar line.
Ugbo noted that the NDPHC would be playing in the renewable energy space through the presidential initiative on rural solar home lighting.

According to him: “In July this year NDPHC signed a partnership contract with Azuri Technologies Group/Azuri Solar Power Nigeria Limited for this presidential initiative designed to achieve in 12 months’ deployment of all SHS units to the identified communities/beneficiaries. A new department is now in place to drive this initiatives.”
He alleged that the 11 electricity distribution companies (Discos) in the power sector have refused to activate and use Completely Self Protected (CSP) transformers that the DNPHC had deployed to their various networks as part of its intervention the sector. This, he added impedes the level of their service to consumers.