Why Nigeria Approves Sale of Three NIPP Gencos

Three electricity generation companies (Gencos) built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Projects (NIPPs) would soon be sold to private investors in continuation of the 2013 NIPP privatisation that was suspended, the Managing Director of NDPHC, Mr. Chiedu Ugbo, has disclosed.

 The plants, which Ugbo said the resumption of their privatisation has been approved by the government, include the 634 megawatts (MW) Calabar, 1,076MW combined cycle Alaoji, and 506MW Geregu. He noted that the challenges that stalled their sales had largely been cleared and were now ready to be privatised.

Speaking in an interview at the weekend in Abuja, Ugbo explained that the government approved their privatisation because the transmission and gas supply troubles they had, had been resolved and that the market risks in the sector were being addressed.

He also noted that preferred bidders for the plants were still very interested in them as against thoughts that they might have lost interests.

Ugbo said: “This privatisation process started in 2012 and moved to 2013 with the emergence of the preferred bidders. At that time it was a mix of market issues and internal issues that had to do with gas supply, completion of the power plants and evacuation.

“Alaoji and Calabar had no evacuation facilities, the plants on the west side of Delta, from Sapele, Benin had gas supply problems. Shortly before I came in, the company got approval that once we finish resolving the issue of a particular plant we should go ahead and sell the plant.

“So, we were able to rush and finish the Ikot-Ekpene switching station and the transmission line to Calabar and the transmission line to Alaoji, as both of them come to Ikot-Ekpene where the power is sent to Ugwuaji and from there to the rest of the grid.

“So, that resolved the transmission challenge for Calabar and Alaoji. Total has finished the dedicated pipeline to Alaoji power plant and they have started supplying gas to the plant. Alaoji and Calabar both have gas evacuation facilities. We got approval for Calabar to be privatised, Alaoji was not included because it was under litigation. But the issue has been handled and Alaoji is back,” he explained.

According to him: “In Omotosho, gas was the only challenge and we are working on that. For Geregu, we are discussing with GACN and NPDC to finalise the gas supply agreement for that plant. So, in essence, we’ve finished what is our responsibility for the three and we are ready to go.”

On the market risks, Ugbo explained: “In 2014, the market was not bankable. It was difficult for bidders, as any lender coming to do due diligence on Nigerian market would just see what we were getting. That you would supply 100 per cent and get about 25 per cent. They (lenders) were saying that the market couldn’t guarantee their monies coming back.

“But we are still on the privatisation process because the preferred bidders are still interested as much as they were in 2013. We still have them and we are working with them as we try to close these three transactions,” he confirmed.

He noted that the NDPHC was also working with the Bureau of Public Enterprises (BPE) and National Council on Privatisation (NCP) to conclude the privatisation process, adding: “We are just waiting for certain approvals now if the options we are proposing are accepted.”

Insisting that the plants were still wanted by the investors, Ugbo said: “It is just to clear the market risks around the plants so that the lenders can provide the funds to the investors. The business must make sense before the lenders will put their money there.”

He also disclosed that the NIPP plants that are in operation were selling power to the national grid at a discounted rate, in addition to them not allowed to claim capacity payments.

Ugbo explained: “Our tariff is somewhere around N18 while the rest of the generation plants are about N23 per kilowatt hour. We are discussing this with NBET right now because it is what we met.

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DRC: Peacekeeper Killed In Attack....

 Rebels from a Ugandan-dominated group on Monday attacked a UN military base in eastern Democratic Republic of Congo, killing one peacekeeper and injuring 12 others, the UN mission said.

According to the report, the attack took place in Beni, where UN soldiers have been battling the Allied Democratic Forces (ADF), which is dominated by hard line Ugandan Muslims, a spokesperson for the UN mission in the DRC said.

Also, Congolese troops had clashed with the rebels in the area on Sunday. The day before, the ADF attacked around 10 motorbike taxis in the locality.

 The UN mission known by its French acronym Monusco said, adding that UN ground and air forces had been deployed in the area.

The UN did not specify the nationality of the dead soldier or the injured.

Rich in precious minerals, the east of DRC has been unstable for 20 years.

Several dozen local and foreign armed groups stand accused of serious rights abuses against civilians, such as rape, killings and abductions.

The ADF has been accused by Kinshasa and the UN mission of killing more than 700 people in the Beni region since October 2014.

NEWS24

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Again, Political Leaders vent Anger At Umeh, Sagay, Others...

Political leaders in the South-East geo-political zone of the country, on Friday, applauded the National Chairman of the All Progressives Congress (APC), Chief John Odigie-Oyegun, for his contributions to the development of the Nigerian political system.

“Chief Odigie-Oyegun, by his political understanding has provided a bridge of good appreciation of democratic behavior between the presidency and the party on one hand and the government and the governed on the other hand”

They also commended the national chairman of the ruling party for taking the South-East into consideration and supporting the Igbo dream of producing a president for the country.

“The future of Ndigbo is only safe in the hands of APC,” the leaders said.

At a meeting in Enugu, the leaders criticised the All Progressives Grand Alliance (APGA) for failing to stem the continued suffering of the good people of Anambra State.

Willie Obiano, the leaders said, they were sure would not win the November 18 governorship election because the APGA led-administration had performed abysmally.

They also launched a strongly- worded attack against the Chairman of the Presidential Advisory Committee on Anti-Corruption (PACAC), Prof. Itse Sagay, Executive Director, Centre for the Vulnerable and underprivileged (CENTREP), Mr. Oghenejabor Ikimi, the Chairman, Christian Council of Nigeria (CCN), Rev Tunde Adeleye, former Special Assistant to ex-president Goodluck Jonathan, Reno Omokri, former National Chairman of APGA, Chief Victor Umeh, Nigerian Blogger, Kemi Olunloyo and Executive Chairman, Coalition Against Corrupt Leaders, Mr. Debo Adeniran, describing their criticism of Oyegun and the Muhammadu Buhari led-APC Federal Government as harsh and misleading.

In a communiqué, the leaders’ heaped scorn on former ally of President Buhari, Buba Galadima, former Majority Leader of the Osun State House of Assembly, Wahab Olatoye and Prof. Sagay for dabbling in the affairs of the party, mocking them as the mouth-piece of those plotting to destroy the country’s ruling party”

“These critics are puppets who are only twitching to the pull of the strings of certain individuals in the country. The All Progressives Congress is an effective and efficient political organization. It is not a shelter for unlawful or greedy politicians” the leaders said.

The communiqué, signed by the chairman, South-East Unity and Advancement Forum (SEUAAF), Chief Maxwell Okoye, acknowledged the vision, maturity and leadership style of Oyegun.

They also praised the former Edo State governor for promoting the Igbo cause, providing direction and expanding the ruling party.

“APC is not ill. The political growth of the party is not aimed at decreasing the power of some individuals. Odigie-Oyegun will never protect corrupt politicians”

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US President Approves New Russia Sanctions

United States President, Donald Trump, has signed into a law a bill which imposes new sanctions on Russia for their alleged meddling in the 2016 election.

The White House had indicated that Mr. Trump would sign the bill after it had passed through both houses of Congress, the BBC reports.

But on Tuesday, U.S Secretary of State, Rex Tillerson, said he and the President are not “very happy” about the bill.

Russia denied interfering in the U.S election, and Mr. Trump has denied colluding with Russia.

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Nigeria Secures N3.38bn AfDB loan For Potatoes Production

 

 

The Minister of Finance, Kemi Adeosun  said the loan would be used to develop the Irish potatoes value chain in the 17 local local government areas of the state.

 

Adeosun  explained that the implementation would be jointly executed by FADAMA project and a unit in the state ministry of agriculture with about 70 percent of the loan going for the provision of infrastructure, extension services, improved planting and marketing.

 

According to the minister, the implementation would help to boost production and minimize wastage.

 

The  minister said: “My approval was on behalf of Plateau State to support the potato value chain. 

 

There is a loan that we had previously cancelled from AfDB. So, it is not a new loan. We cancelled it and redirected the money to request on behalf of Plateau State Government to support the potato value chain.

 

“The rationale is that Plateau actually accounts for 95 per cent of Nigeria’s potato production and from Plateau, potatoes are actually exported to Ghana, Niger, Chad and other countries and despite that, there are huge profit losses because there is no enough storage and there is so much more we can do with Plateau’s potatoes.

 

“So, AfDB has come up with a comprehensive programme that will affect over 100,000 families. It is expected to create 60,000 jobs in a potato value chain, from processing, storage, replacement of current inputs and indeed, export.

 

“Now, the terms of the loan is one per cent per annum interest rate and it has 25 years moratorium. Plateau State will provide counterpart funding and the balance will be borrowed. It will affect 17 local government areas and we expect it to make significant job creation.

 

“The amount of the loan is N3.38 billion equivalent and Plateau State ought to contribute N595 million as their own counterpart funding.

 

“We have put a process in place to ensure adequate monitoring. This is really an important economic development for the nation and for Plateau State in particular.

 

“We have real advantage in potato production. We are really going to invest the money on roads. In some cases, the money will be used for roads to enable the products to come out. Sometimes, it is for storage. Sometimes, it is transportation. Sometimes, it is access to seedlings.”

 

Also speaking, Minister of Power, Works and Housing, Babatunde Fashola said, FEC approved and ratified works to be done on the Apapa Wharf road at the cost of N4.131 billion.

 

The Minister disclosed  that the two memos his ministry brought to council were ratification of road works that had to be done under emergency circumstances.

 

According to the minister, “The first was the Abuja- Kaduna highway. Recall we had to immediately do palliative works in order to support the closure of the Abuja airport runway which necessitated diversion of traffic to Kaduna.

 

“At that time, we didn’t have FEC’s approval, we only had anticipatory Presidential approval as prescribed under the law for emergencies works.

 

“The second one was with respect to the Apapa Wharf road. Recall that there was a recent presidential order for a 24hour, and that put pressure on an already detoriating road.

 

“I also went to handover that road sometime in June under the public private partnership structure between Julius Berger, Flour Mills, NPA and the ministry of Power, Works and Housing.

 

“To start construction on that first phase of the road. Council approved and ratified works that we had conducted on Abuja-Kaduna highway and also terms and conditions upon which we handed over the Apapa road.

 

“The project is at the cost of N1.58 billion for the 165 km Abuja Kaduna stretch where we did mainly patching of potholes to make the roads motor-able during the closure of the Abuja airport. The Apapa project is N4.131billion.”

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