AMCON seizes Egbema, Omoku power projects from Rockson over delay

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The Managing Director of Niger Delta Power Holding Company (NDPHC), Mr Chiedu Ugbo, says the Assets Management Corporation of Nigeria (AMCON) has taken over Egbema and Omoku power plant projects from Rockson Engineering Limited over delays in completing them.

The two plants are part of 10 gas-fired power plants being built under the National Integrated Power Projects (NIPP) under the management of NDPHC.

Speaking on Presidency This Week, a television programme showcasing the activities of the Federal Government, Mr Ugbo said the delay by the contractor, Rockson Engineering, had hampered the completion of Egbema in Imo State and Omoku in Rivers State.

“I must say that the ones that have not been completed have been under one contractor, Rockson Engineering, due to contractor delay. But we have found a way around the contractor issue now.

“We are working with the Assets Management Corporation of Nigeria (AMCON) which has taken over from the contractor under a receivership, with the full support of AMCON to complete these projects,” he said.

For the Gbarain NIPP in Bayelsa State whose initial unit was put into operation this year, Ugbo said NDPHC is working to commission the second unit by February 2019.

Mr Ugbo lauded President Muhammadu Buhari for the intervention to sustain the operations of power Generation Companies (GenCos) through the N701 billion payment assurance guarantee.

He said: “Were it not for the N701bn, generation companies would have folded up by now. We are very grateful to the President for that singular decision of the minister who made that recommendation.”

He highlighted several projects the company has completed in the transmission section of the value chain to boost bulk electricity wheeling capacity for the Transmission Company of Nigeria (TCN).

On the essence of the interventions, he said it was “Basically, stepping the electricity being transported at 330KV level to 132KV, 33KV level where the Distribution Companies (DisCos) can pick and give the users,” he noted.

Mr Ugbo also said there are huge interventions at the distribution level to enhance the supply of electricity to the end users. “There is a lot we are doing. We have a lot of investment in the value chain from the gas infrastructure up to distribution to the end users,” he noted.

He, however, highlighted the key challenges of funding, vandalism and right of way issues. “Since our generation plants were completed, we have been relying on what we receive from the electricity market. Whatever we receive, we put back into the electricity supply industry.

“These are in addition to the expenses in operation and maintenance of the plants but we don’t get enough from the market,” Ugbo noted.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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