Multi-billion naira state-owned power projects dormant
Power projects worth billions of Naira which were initiated by State governments to provide adequate electricity for Nigerians have remained uncompleted even as outages worsen, Daily Trust investigation has shown.
Many state governments made the moves in the last eight years to build power plants that could improve power generation and access to electricity for the states. But our findings show that in spite of the huge billions the projects have gulped, they have either been abandoned or yet yield any impact. Among them is the 35MW Tiga Independent Power Plant (IPP) in Kano; the 35MW Yankari IPP in Bauchi State; the 38MW Sokoto IPP; the 40MW Rivers IPP in Rivers State, 40MW Ibom Power in Akwa Ibom and renewable energy projects in Kaduna State. State IPPs abandoned In 2002, the Kano State government initiated the idea of a power plant on the Tiga and Challawa Gorge water body which was already a source of irrigation for the farming communities.
The N14.228 billion IPP project on the dams, however, began in 2013 under former governor Rabiu Musa Kwankwaso who initiated the concept in 2002 during his first tenure.
Records show that the Nigerian Electricity Regulatory Commission (NERC) issued a licence to that effect to the Kano State government for the Tiga Hydro Electricity Power Station.
It was slated for completion in January 2015 but four years after, the project is yet to begin electricity generation. Kwankwaso said the project executed by Skipper Transmission and Distribution, a subsidiary of Skipper Group of India was financed by the State without debt.
A visit to the Tiga IPP site revealed that there is much to be done as the ongoing work at the site seems to be on a low phase. According to an official at the site who refused to be named, the December 2019 timeline is not realistic.
Like Kano, the 38MW Sokoto IPP project has been ongoing for many years. While that of Kano is hydro and has much fuel source, the Sokoto IPP is faced with the huge hurdle of getting constant gas or diesel to power it.
The project was awarded in 2008 by the government of Aliyu Magatakarda Wamakko to be executed in six months but was later reviewed.
The project’s completion timeline has been shifted eight times since work began. From September 2009 when it as expected to be completed. It was shifted to December 2010 and to July 2011. The government had slated September 2013 but extended it to August 2014, later to November 2016, and of recent, it was shifted to December 2019.
The Commissioner for Energy, Aliyu Dandin Mahe in a response to inquiries said the December dateline was sacrosanct as the state government had since released over N1.5bn required to complete the 11-year-old project.
Checks also show that the 35MW Yankari Power in Bauchi has been abandoned. The project valued at $201m was initiated by former Governor Isa Yuguda and the site process began in 2015.
It was to be delivered in 18 months and would later expand to 120MW. An agreement was entered into with Jos Electricity Distribution Company (JEDC) to distribute the generated power on completion of the project.
NERC also granted a licence to the State for the Yankari Power in 2014. However, four years after, the site has been abandoned and there is no indication that the State will continue with the project.
A visit to the once proposed site for the project reveals a sorry state of how the dream of having a power plant in Bauchi is being dashed.
A staff of TCN who responded to our inquiries said the immediate past Governor Mohammed Abubakar allocated the land to TCN.
When contacted for a reaction, the Bauchi State Commissioner of power, Umar Sade said he travelled out and declined to speak on the telephone.
At least 150MW capacity of power to be generated in three plants is idle in Rivers State due to many administrative hurdles. Former Governor Peter Odili conceived the idea of the first IPP in 2000. However, from then till Rotimi Amaechi’s administration in 2015, over N60 billion had been spent on the projects.
First of this was the Eleme Gas Turbine power station. Although it was constructed earlier in the 1990s, it was expanded to 75MW as the 25MW turbine was replaced with three others in the Eteo part of Eleme.
The plant also has a 132/33 kilovolt transmission switchyard for the power evacuation. The project was commissioned and began operation from 2001, supplying power communities in Ogoni land in Rivers State while dispatching to the national grid.
A resident of Eteo community, Olormati Igwe recalled how people of the area used to enjoy 24 hours of uninterrupted power when the turbine was switched on. “But all that is now history as the turbine is no longer working,” he said when our reporters visited the site recently.
Still in Rivers State is the Omoku IPP which has six units of 25MW GE gas turbines, making a total of 150MW. It was commissioned in 2006 by former President Olusegun Obasanjo and operated by the First Independent Limited mainly financed by the state government. Shortly after, the project came under investigation by the Economic and Financial Crimes Commission (EFCC) based on petitions by indigenes who alleged that the project was overpriced.
The Akwa Ibom State Government owns the Ibom Power Company Limited (IPC) which generates about 40MW to the national grid but has 115MW capacity.
The plant’s project was started during the tenure of former Governor Obong Victor Attah in 2007 and completed by the administration of Governor Godswill Akpabio.
IPC which is located in Ikot Abasi LGA of the state has the potential to generate more power at its peak, officials told Daily Trust.
Speaking about it recently, the Governor, Udom Emmanuel has said the state has invested so much money in power generation.
“We generate 115 megawatts and the Federal Government is not even paying us for what we are giving to the National grid, it does not make sense,” he said.
IPC also has a transmission infrastructure like power lines and substations, and is licensed by NERC.
The phase one has installed capacity of 191MW with three General Electric (GE) gas turbines to the national grid. The commercial operations began in December 2009. The government said it is planning a second phase which is expected to add 494MW to the existing 191MW capacity.
The State government said it has done several other projects but the agreed cost of some has not been refunded to it by the federal government. For instance, it said TCN is yet to refund the project cost for Ikot Abasi to Eket transmission line, constructed by Ibom power to evacuate the plant’s output.
Away from the conventional power generation, the Kaduna State government under Governor Nasir El-Rufai has opted for a renewable energy solution to power households and streets in the State.
The projects are being implemented by the Kaduna State Power Supply Company (KAPSCO) under the Department for Rural and Community Development of the State.
KAPSCO is also a Special Purpose Vehicle (SPV) for power projects in the State which is registered by CAC as a limited liability company. It began with solar power projects, first, to light up rural hospitals in 2015.
On November 28, 2019, the Deputy Governor Hadiza Balarabe commissioned a 47.5 kilowatt (KW) solar power plant at Doka General Hospital along the Kaduna-Abuja expressway. She said the scope covers 13 rural isolated general hospitals and 255 Primary Healthcare Centres (PHCs), providing 792KW for the hospitals and 1.3MW for the 255 PHCs. So far, Kaduna Solar has provided 1.6MW of solar power across 34 PHCs in two years.
The nurses and other health workers at the Doka hospital were excited about the project saying they had contended with epileptic grid power supply.
One of them, Musa Yusuf explained that the solar mini-grid can power freezers used as blood banks, light up the entire wards especially the labour and maternity wards and that most of all, staff can now charge their telephones anytime to enhance communication.
A visit to the KAPSCO, however, shows its building was under renovation and for two weeks it did not respond to inquiries on details for other solar projects. Most of the offices were empty with no furniture and other office equipment as they were just painted. An official whom our reporter saw at the gate explained that offices were empty because they recently relocated to the building.
The Managing Director of KAPSCO, Dolapo Popoola who recently defended her 2020 budget at the State House of Assembly said N8.3 billion will be spent in 2020 to provide solar power for 3,400 homes in Kubau, Jema’a and Kajuru LGAs.
C/River to unveil 49MW Calabar IPP
Last week, the Cross River State Government showcased its 49MW projects – a combination of the 26MW Ayade diesel-powered plant which is nearing completion and the 23MW gas-powered project at Tinapa that is at 60 per cent completion level.
The two power projects are being handled by Skipper Engineering, a leading electrical equipment manufacturing company.
Conducting the Minister of Power, Engr. Sale Mamman on an inspection visit to the project sites, the State Governor, Prof. Ben Ayade said his administration has also initiated the construction of a 250-kilometre distance of 330KVA transmission line to connect the northern part of the State up to Obudu Cattle Ranch.
He said the investment was to ensure that the entire state has an adequate power supply. Ayade said his ultimate plan is to make Cross River State the most powered state in the country so that life can be more comfortable for the people while promoting social and economic activities.
Ayade said he was ready to collaborate with the Federal government in every sphere of development especially in the power sector.
The minister was in Calabar for a retreat of senior power sector officials stressed the need for States to support the federal government in building power infrastructures as he called on States to invest in them to boost access to power for the indigenes. Mamman commended the Cross River for the huge investment in the power sector and urged other States to emulate the State.
Engr. Mamman assured that the Federal government was ready to collaborate and support every state willing to invest in the power sector.