Udeme Clement-Ogbuanu
18 November 2008
Lagos — Lagos State Government has dragged the Power Holding Company of Nigeria (PHCN) to the Nigerian Electricity Regulatory Commission (NERC) Tribunal headed by Dr. Ransome Owan, over a breach of Barge Power Purchase Agreement (BPPA), now estimated at N12billion.
Represented by the Attorney General and State Commissioner for Jusrice , Mr. Olasupo Sasore, Lagos state stated that the agreement between her and PHCN was for the State to get additional supply of electricity due to the number of industries in the area under the Independent Power Project (IPP).
Enron Nigeria Power Holding Limited and Enron Nigeria Barge Limited, regarded as the Enron parties in the agreement, according to the Attorney General, were required to generate power for sale to Nigeria Electrical Power Authority (NEPA) now PHCN, in return for specified capacity, and PHCN expected to purchase the power and supply same to customers in specified areas of Lagos State.
He explained that since the power generated by the IPP was designated for Lagos, the State government demonstrated support for the project by entering into a contribution agreement, dated June 30, 2000 with PHCN. In the agreement, the petitioner agreed to pay PHCN 21.15 per cent of the amount invoiced to them as capacity payments by instructing the Federal Ministry of Finance to effect a direct debit of its statutory allocation from Federation Account to PHCN annually.
Sasore further told the panel that in 2001, the IPP project commenced commercial operation and PHCN began to purchase energy under the BPPA contract.
He said the amount deducted annually was N255million, which has accumulated to N12billion in the last seven years between 2001 and 2008, adding that the level of electricity supply for this period does not commensurate with the whooping sum so far taken by PHCN.
"In a clear breach of the express provisions of the BPPA and the spirit of contribution agreement, PHCN failed to devote electrical output of the IPP to customers in the areas designated in the BPPA contract. Despite this fundamental breach of the agreement, PHCN sought to obtain contributions to the BPPA capacity tariffs," he said. Clergy Charges Yar'Adua on New Ministers
As the nation awaits the announcement of new ministers, the Presiding Bishop, The Redeemed Evangelical Mission (TREM), Bishop . Mike Okonkwo, has advised that president Umaru Musa Yar'Adua should avoid the norms as well as overcome all party sentiments while searching for credible people in the country who are proactive and have the interest of the nation at heart.
He said this while addressing newsmen, Sunday, during this year's Kingdom Life World Conference, held at the TREM, Headquarters, Anthony-Oke Lagos.
"We are tired of recycling old people who do not have anything to offer this country. The president should cross the party boundaries and go after them and I believe that if he does this, the next few years will be glorious", Okonkwo had said.
Speaking on the theme of this year's conference, " ... and God said..." the Bishop said it was high time the nation clinked to God's word like never before.
"Like never before, it is time to clink onto God because man's words, ideas, expertise and abilities are failing but one thing is stable on this earth and that is the word of God. Everything was founded on God's word, so it is important that people go back to God's word and begin to obey what He says. When we act on His words, we are guaranteed success. Like Isaac was told to sow in the land of famine, it did not make sense but he sowed and the Bibles says that same year he reaped a bountiful harvest".
Okonkwo said the conference would certainly proffer the answers that we have been looking for, as anointed vessels of God will be speaking the mind of God during the week-long programme.
On Adams Oshomole's victory, he said, "it is one of the greatest victories that we have ever seen", adding however that the judiciary has to do more.
He stressed that the judiciary should not extend the time to dispatch judgment in terms of political offices as such delays would disrupt progress.
"After so many years of delay in justice, now Oshiomhole is going back to start to lay a fresh foundation. So the judiciary should make sacrifice and dispatch such cases as soon as possible".
He said other governors should emulate Oshomole in his people oriented policies rather than pursuing elephants projects that never come to an end.
Speaking on Obama's victory, the Bishop said that from every indication, it was clear that Obama is able, adding, "I have never seen a man who could be able to mobilise such support. No man living or dead has been celebrated in such a massive way all over the world. So I believe he would succeed in his programmes by the grace of God.
He advised Obama to tackle the of economic situation first, noting, "an hungry man is an angry and I am happy the economic situation is one of the first things he wants to deal with. In that way, people will stop losing their homes and valuables".
Okonkwo advised further that the American President Elect should also stop the global killing that the Americans are engaged in, noting that if those two things are tackled; it would be fine for the world.
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