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Nigeria: FG to Move Gas Turbines With N2bn
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Vanguard (Lagos)
7 May 2008
Posted to the web 7 May 2008
Hector Igbikiowubo
Lagos
THERE are indications that the Ministry of Energy (Power) has decided to approve N2 billion for the construction of a ramp and modification of the Imo River bridge to facilitate the movement of gas turbines from the Onne Port in Rivers State to Alaoji in Abia State.
The Power Ministry currently grapples with lethargy in the execution of its role as power generation, supply and distribution hit an all-time low at the weekend, registering 860MW on the national grid.
The move to provide N2 billion followed a meeting, two weeks ago, between officials of the Ministry of Power, Power Holding Company of Nigeria (PHCN), PPE, Federal Government's consultant on the Alaoji 1074 Megawatts (Mw) Combined Cycle power project, and the contractors handling the project, Rockson Engineering Limited.
A top government official told newsmen in Houston,Texas at the on-going Offshore Technology Conference (OTC) in the United States (USA) that Hajia Fatima Ibrahim, the Minister of State for Energy in charge of power would soon submit a memo to President Umaru Yar'Adua seeking the release of about N2bn to fast-track the completion of the Alaoji power project under the National Integrated Power Project (NIPP) of the Federal Government.
Sources said the meeting ended on a good note with all the parties to the project agreeing on the N2 billion offered by the Federal Government to the contractors to enable them move the power turbines at the Onne ports in Rivers State to the site of the project in Alaoji in Abia State by constructing a ramp over Imo River for smooth movement of the turbines to site for installation.
According to sources, the present state of power generation, supply and distribution in Nigeria has become worrisome to government and the thinking is that contractors who have performed well under the NIPP project be encouraged to complete the job with a viw to improving power generation in the country.
The N2 billion that was said o have been agreed upon at the meeting based on the recommendation of the Federal Government's consultant against an earlier submission of N2.5 billion by the contractor, needed for the construction of a ramp across the Imo River bridge, expansion of some portions of the roads for the crossing exercise and payment of compensation to owners of houses earmarked for demolition.
Sources said government agreed to make available N1.6 billion for the construction, expansion and payment of compensation while setting aside the balance of N400 million to cover cost over-run.
The N400 million exigency allowance is to be kept in a special account until the need arises.
It was gathered that in line with the agreement reached at the meeting, the memo to the President for this purpose is expected to be at the Presidency before the end of this month.
The Ministry is understood to had invited the contractor to attend a presentation by another engineering firm which claimed that it could get the turbines across the Imo River bridge at little or no cost.
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As part of its probe of the Power Sector, the House of Representatives Committee embarked on a tour of ongoing power projects to verify the level of work and during a visit to the Onne Port in Rivers State, it was discovered that some gas turbines and power equipment were stuck there.
Briefing the House Committee, representatives of Rockson Engineering Company said work at the Alaoji 1074 Megawatts combined cycle power station had been stalled by its inability to get government to approve variation in the work order to enable them carry out modifications on the Imo River bridge.
Last week, the nation experienced three system failures arising from low power generation at all the thermal power stations owing to shut-in gas supplies and the hydro stations.
After over one year at Onne Port as a seemingly delibrate effort by the present administration to delay the project and, knowing that the deception on the power project could now start to backfire, the administration has finally allowed the contractor to move the turbine for the 1074 Alaoji combined cycle power project to the site to complete the project. According to Gov. Imoke, who was the energy minister on the project, there were as at February this year about 21 turbines stranded at various ports in the country awaiting orders from the present administratration to be allowed to... [Read Full Text]
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