The non-availability of gas supply to the 10 thermal power plants has been identified as the bane of the National Independent Power Projects (NIPP), 4,541 Megawatts of electricity into the National grid.
Acting Director General of Bureau of Public Enterprises (BPE)
Vincent Akpotaire, disclosed this at the opening of the investigation into the alleged non-transparent and fraudulent sale of power assets at the National Assembly complex, Abuja, where some aggrieved bidders including Power Grid of India, accused BPE of disqualifying other bidders and appointing Manitoba under questionable circumstances.
Akpotaire explained that the Bureau used the valuation of Nigerian Electricity Regulatory Commission (NERC) which was 25 percent lower than other valuers for the bidding of the Distribution Companies (DISCOs) to enable the investors recover their investment.
From the total sum of N438,057,099,400.07 realised from sales of all the assets of the defunct Power Holding Company of Nigeria (PHCN), N374,858,300,400.07 was paid for workers terminal benefits; N53,648,699,000 paid to Escrowed for PPA while N9,550,100,00 was approved by National Council on Privatisation (NCP) as cost of transaction, while the sum of N23,389,518,240.70 was transferred to Treasury Single Account (TSA).
According to him, Federal Government generated the sum of $1,409,095,332.51 from sales of DISCOs and $1,038,024,627.46 from sale of the six Generation Companies (GENCOs) totalling N384,197,833,715.29 at N157/$1 as at 2013 when the transaction was carried out.
Total sum of N56,884,994,141.65 was generated from Egbin, N7,548,243,116.37 from Olorunsogo, N12,815,546,667.46 from Omotosho totalling N77,248,783,925.48.
While giving breakdown of the privatisation of generation, distribution and transmission of the unbundle PHCN assets, Akpotarie disclosed that Nigeria requires sum of $12 billion to generate 180,000MWs between now and 2030 for the country to break out if the circle of power poverty.
He added that, between 2012 to 2014, the sum of $5 billion was spent on self power generation which could have added 5,000MWs to the country’s power requirement, adding that 45 percent of Nigerians currently have acvess to power while about 100 million people are in darkness, compare with North Africa with accessibility of 99 percent and 85 percent South Africa.
Speaking on the engagement of Manitoba as management contractor for Transmission Company of Nigeria (TCN), the BPE helmsman disclosed that “the financial proposal of MHI was opened publicly after obtaining NCP approval of the technical evaluation result which showed that total remuneration for the first year before tax was $23.605 million. The proposed fees for the 3rd and 4th years were $5.857 million each.
He however declined to disclosed the amount paid to Manitoba over the four years of managing TCN, stressing that MHI was able to reduce transmission losses from 12 percent to 6.45 percent thereby saving 5.5 percent, by scaling up he operation capacity of the company.
“Given that the annual commercial value of one percent of the power wheeled by TCN Plc amounts to about N5 billion, a saving of 5.5 percent provides the industry opportunity to earn an additional income of N27 billion per annum.
Akpotaire stated further that the Afam power plant which was generating 100MW has totally shut down due to inability of NNPC to guarantee gas supply to the plant managed by Televaras which won the contract bid at the sum of $65 million.
He explained that in case of MHI, the tax component was estimated at $5,859,230 and added to base fee bringing the total contract sum to $29,261,744.
Source: Nigeria Today