FG Threatens To Revoke Contracts For Power Projects

power plants

The Federal Government has threatened to terminate contracts given to any of the firms handling power distribution projects within the country if they fail to deliver them within 60 days.

Vice President Namadi Sambo, who gave the ultimatum at a meeting with the transmission and distribution companies at the Presidential Villa, Abuja, said the contractors must complete the project within the period or failing which they would be sanctioned.

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

The Vice President also 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 (DISCOs).

Accordingly, he asked the new owners of the Power Holding Company of Nigeria to submit their plans on delivering energy metering within one week even as 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, adding 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 who are in the habit of sabotaging government efforts aimed at providing stable power supply in the country and 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.