Daily Independent (Lagos)
Segun Adeleye
5 May 2009
Abeokuta — Insufficient gas supply to the Independent Power Project (IPP) may scuttle plans to produce 6,000 megawatts (mw) by December, Vice President, Goodluck Jonathan, alerted on Monday.
He disclosed at the Olorunsogo power station in Papalanto, Ogun State that effort is still being made to tackle the problem of gas supply to the plants.
He was reacting to the concern raised by officials of the Chinese contractor, SEPCO III, that the inability of the company to get adequate supply of gas is the major problem confronting the company.
SEPCO Deputy Project Manager, Shaohua Liu, said the first phase of the project has been completed, alongside one of the four gas turbines and two steam turbines.
"The greatest problem we have is this issue of gas," Jonathan stressed.
"Before we got here, the Minister of Power, Olanrewaju Babalola, had briefed me about the problem of gas and the problem of payment that you have just explained. The essence of our coming is to listen to you and go back to see how we will get the payment made."
Jonathan told Ogun State Governor, Gbenga Daniel, that the Federal Government would need to negotiate the reimbursement of funds claimed by the state on the project.
"I know there has been a stalemate in the terms of payment. Even when we came on board, there was this stalemate until we were able to sort out the problem.
"This was because the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) took the Federal Government to court challenging the legality of the power to fund the IPP from the Excess Crude Fund (ECF)"
Jonathan recalled that the IPP was conceptualised to be funded from the ECF, but the litigation made it difficult.
"So, we had to hold meetings with the Governors, who had to go to their state Assemblies to appropriate funds legally for the project."
Liu said SEPCO plans to generate and feed 500 mw to the national grid by February 2010, which may be disrupted by insufficient gas supply.
"What we are getting here right now, for the first phase where we have eight turbines completed and ready, is far too little to do anything. It can only power one of the turbines out of eight," he explained.
A gas turbine has been completed in the second phase, capable of generating 125 mw out of the total 750 mw in the phase.
Daniel urged Abuja to refund expenses incurred by the state on the project, and pleaded for help in monitoring the implementation of the contract of six IPP companies in Ogun, licensed to produce 1,660 mw.
He said the state has applied to the Nigerian Electricity Regulation Commission (NERC) to establish Gateway Distribution Company as a public-private enterprise.
He asked the federal authorities to approve the construction of two 330/132KV sub stations in Abeokuta and Ososa.
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WHAT A DISAPPOINTMENT TO THE COUNTRY TO HEAR THE VP JONATHAN TALK OF FAILURE TO SUPPLY 6000MW BY DECEMBER. What a shame!