Privatization of NIPP Resumes in Phases
The Managing Director of NDPHC, Chinedu Ugbo, has disclosed that the company has obtained Federal Government’s approval to resume the privatization process of the 10 gas power generating plants built under the NIPP which had been stalled since 2013.
Speaking at an energy forum in Abuja, the NIPP boss stated that the privatization process will be restarted, but under a new arrangement and that the process would now be concluded in phases, starting with three of the plants, the 634 megawatts Calabar, the 506 megawatts Geregu and the 513 megawatts Omotosho power plants.
According to Mr Ugbo, the decision by the Federal Government to fully privatize electricity generating plants built under the National Integrated Power Projects (NIPPs) would be attracting the much needed liquidity in the sector, increase operational efficiency, save threatened jobs and generate new ones.
The company has been having serious challenges with the critical liquidity issues in the electricity market that has an invoice return rate of 30%, while the gas suppliers are demanding for 100% payment, sometimes in hard currency.