Government, NDPHC

Why 10 NIPP Projects Were Inconclusive- Olotu, Former Power Boss

Posted: February 19, 2018 at 12:47 pm   /   by   /   comments (0)

By Dele Ogbodo

The former Managing Director of the Niger Delta Power Holding Company (NDPHC), Mr. James Olotu, has attributed the inconclusiveness of the 10 NIPP projects to the sudden rise in foreign exchange against the local currency and insecurity which was pervasive across the country then.

Olotu, who spoke over the week end in Abuja, said the construction of the NIPP generation plants were well conceived for power generation, adding that the lack of access to gas was one big drawback on the project.

However, it would be recalled that the Federal Government had restarted the privatization of the 8 completed power stations in phases.

On the preferred bidders who emerged after the transaction process, he said, they suddenly developed cold feet after they inspected the plants and later discovered that some of them were behind in the completion levels and availability of gas supply and transmission lines.

While attributing the menace of the militants in some parts of the country to making investment in the Power sector unfriendly, the bidders also blamed the scarcity of dollars because of the high exchange rate leading to why 80 percent of the projects could not be completed.

On the gas supply, he said: “The NIPP was a task force that was a combination of experts from different agencies relevant to achieving the projects. Since the technology chosen for the generation assets was gas, the GMD of NNPC then was a member of the NIPP steering committee which oversaw what the committee did.

” One of the things we did at NIPP was to identify the projects, the technical committee had people from gas, transmission and generation section and if they don’t say yes to a project location, it will not be taken.”

The former MD, said 53 sites were conceived for the projects and committee chose 7 for the generation assets for the first 7 projects, stressing that it is therefore not true that NIPP went ahead to locate plants without consulting experts from the gas sector.

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