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Power Projects: FG gives contractors 60-day ultimatum

By BusinessNews Staff on April 6, 2014

The Federal Government on Friday issued 60 days ultimatum to contractors handling power distribution projects to complete their contracts or be sanctioned.

Vice President Namadi Sambo gave the ultimatum at a meeting with the transmission and distribution companies at the Presidential Villa, Abuja.

Sambo, who said the meeting was conveyed to review power supply situation in the country, warned that their contracts would be terminated if they failed to abide by the deadline.

He mandated the Managing Director, Niger Delta Power Holding Company, Mr James Olotu, to communicate to the contractors on the need to fast tract work to avoid the consequences.

He said the meeting would work out strategies through which government investment through the NDPHC’s (distribution power) contracts could be completed and transferred to the Distribution Companies.

The vice president also asked the new owners of the Power Holding Company of Nigeria to submit their plans on delivering energy metering within one week.

He expressed government’s readiness to assist them to acquire transformers to enable them enhance the power distribution across the country.

Sambo said the companies could buy the transformers from the Ministry of Power, while payment would be spread over a period of 15 years.

He also directed the transmission, distribution and NDPHC to resolve the problems facing their operations, especially that of load shading in some parts of the country.

The vice president said that government placed high premium in the power sector, and had invested heavily in the gas project to supply to power stations.

He, however, condemned those ‘misguided elements’ that were of the habit of sabotaging government efforts aimed at providing stable power supply in the country.

Sambo urged the transmission and distribution companies to be transparent in their operations and work together to achieve the desired result for Nigerians.

Earlier, the Managing Director of NDPHC, Olotu briefed the meeting on some challenges facing the company’s power projects.

He said the problems, included unavailability of 33 KV bays at the 132/33KV substations, inadequate transmission capacity at the TCN substation of Abuja, Ikeja and Port Harcourt Discos and Security challenges in the North-East.

“It was discovered that lines work are being frustrated by aesthetic development along road works in Lagos and Rivers States,” he said

Olotu identified the delayed procurement of last batch of materials, including automation equipment at Eko and Abuja discos as part of the challenges responsible for the poor state of power supply across the areas.

[Punch]

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