I read with consternation a report on page 8 of The PUNCH of November 24, credited to Senator Chris Ngige and titled, “Obasanjo power plants, wasteful”. The report quoted from a talk delivered by Senator Ngige on “Power Supply in Nigeria”, during the First Judiciary Day of the Student Union Government of the Nnamdi Azikiwe University, Awka. Since the Senator has so far not refuted the report, it can be taken that he had not been misquoted. Before the falsehood that Ngige peddled on that occasion begins to take root, I believe that it is necessary to lay bare the facts on the power plants established during the period he referred to and ensure that the public is not misinformed and misled.
Ngige was quoted to have said that “the power plants built by the government of Gen. Olusegun Obasanjo between 1999 to 2003 were wasteful ventures” and “that the cost of securing and laying pipe(s) to carry gas to the power projects at Papalanto, Olorunsogo, Geregu, and Omotosho and other places was enough to build more of such power plants and fund transmission and distribution projects”. He followed up with the insinuation that the siting of the power plants was based on “political considerations”.
I am constrained to say that the facts that pertain to the four plants established during the period and which can be verified by all, clearly show that nothing can be farther from the truth than Ngige’s assertion above. The siting of the plants namely, Papalanto (Olorunsogo), Omotosho, Geregu and Afam V were based on sound technical consideration and the prices at which the plants were procured were highly competitive by global standards and are the cheapest Nigeria has ever procured viz:
1) The Papalanto and Omotosho plants were located less than five kilometres to the existing Escravos – Lagos Gas Pipeline making the cost of connecting them to gas less than $5million each.
2) The Geregu plant was located less than eight kilometres from the existing Pipeline that takes gas to the Ajaokuta Steel plant.
3) The AfamV Plant was located within the existing Afam Power Plant and therefore did not need any special pipe laying.
4) The distance of all the four power plants from existing major transmission lines is less than two kilometres making the cost of connection to the National Grid infinitesimal.
5) The turnkey costs of all the four power plants were less than $500 per megawatt which was verified by the Due Process Office to be globally very competitive. The benchmark price used for the NIPP projects which came up later was more than $1000 per megawatt.
6) All the four plants were completed within 24 months from contractors’ mobilisation, making them the fastest of deliveries in the history of Nigeria. AfamV was commissioned within 12 months!
7) A concessionary funding programme was negotiated with the Chinese Exim Bank for the Papalanto and Omotosho power plants through which Nigerian government paid only 35 per cent of their cost for the plants to be delivered. The balance of 65 per cent will be paid over a seven year period at six per cent interest rate and two years moratorium. The idea was that after paying 35 per cent and the plant was completed within two years, the income from generated power would be used to pay up the balance of 65 per cent without recourse to the Nigerian treasury!
The facts above are all verifiable on the ground and in the books of the Power Holding Company of Nigeria. What is perhaps intriguing is that Ngige, a former State Governor, presently the Deputy Chairman of the Senate Committee on Power and who was a contractor to NEPA
There is no doubt that we have problems in the Nigerian power sector and that all hands must be on deck to clear all bottlenecks on our way to end the needless pains that the mismanagement in the sector has caused us. There is also some merit in identifying periods and people that have contributed adversely to the mess. In doing this however, we must endeavour to tell the truth and ensure that we do not allow other sentiments to becloud our judgement. This will not allow us to learn and thereby arrive at how best to develop and maintain an efficient power supply system in Nigeria.
With all due sense of modesty, the period and projects that Senator Ngige is trying to deride were golden in our collective efforts at getting stable power for Nigeria. Between June 2000 and December 2002, our electricity generation capacity increased from 1425 to 4300 megawatts. Both the transmission and distribution subsections were strengthened such that peak load (delivered) for the first time in the history of Nigeria surpassed the 2400 megawatts maximum in 2002. The establishment of the Papalanto (335MW), Omotosho (335MW), Geregu (410MW), Afam V (276MW), Enron IPP(280MW) andKwale IPP (450MW) were added during the same period with the view of increasing the 4300MW generation capacity to about 6000MW. That was also the period when the Power Sector Reform Bill was crafted and submitted to the National Assembly to pave way for a more efficient deregulated power sector.
Finally, we concede to Ngige the right to pass his judgment on Obasanjo, his administration of Nigeria when he was in power and of course, the former President’s politics. I am sure that Obasanjo can deal with that on his own and I am not in anyway standing brief for him. Ngige has however chosen a very wrong Obasanjo project to bash in his Awka lecture. Some of us who worked conscientiously with Obasanjo to visibly move the power sector forward between 2000 and 2003 will not allow anyone to rubbish our sweat and the gains that Nigeria made during that period.
•Dr. Agagu, CON (Former Governor of Ondo State and Minister of Power and Steel, 2000 – 2002)
