Afam power plant can generate N800m

0

The Managing Director, Afam  Power Plc, Olumide Obademi, has said that the full  utilisatistion of  generating capacity of unit 17 and 18 of  Afam  four power plants for a month could  generate N800 million  for the  company.

Obademi said  this on Thursday in Afam , Rivers, during a facility  inspection  of the power plants by officers of the Federal Ministry of Power, Works and Housing.

The Afam four power plant  comprised  of GT or unit  13,14,15,16 17 and 18 with each installed capacity of 75 megawatts.

Presently  GT 13-16 are out of operation since Feb 14,1996 due to various faults.

GT 17 and 18 with a total capacity of 110 megawatts, are back to grid for commercial operation on Sept 2017, haven  been out of generation since   January  6, 2015 due to a burnt  evacuation transformer.

Obedemi  said :“If the two of them are working optimally  and  the grid  managers  allow us for at least one month to generate fully,  I am very quite sure  what we will  generate cannot be less than N800 million.”

He, however, said the payment  for  gas supplied  to  gas companies  would take the large chunk of the money  to be realised .

Obademi  said  liquidity problem was a major challenge to the company, noting that the little amount earned from energy generated was not fully paid for by the  Nigerian Bulk Electricity Trading Plc(NBET).

“I want to reiterate that the fund challenge faced by the company is so enormous, as a result of the delay in concluding privatisation exercise and emerging market rules.

“Because of the privatisation exercise, there is no budgetary allocation to the company since 2012.

“The company was surviving  through internally generated revenue  from energy generated in January 2015.

“But when the evacuation transformer that serves GTs 17 and 18 that evacuates power from the  two available units got burnt, that left the company with no source of income.

“Since, there was no generation from Afam, no budget from the  ministry  and no  other source of income, staff salaries with a total of 220 staff inherited from the defunct PHCN were accumulated,” he said.

He, however, said the outstanding 20 months salary and allowances had  been paid till date.

He listed other challenges affecting the company to include non availability of spare  parts  due their expensive nature, Zero funding for critical projects and  challenge of  gas supply among other issues.

Obademi  called for full funding of the company  by the Federal Government since the company was yet to  be fully privatised  and the payment of all outstanding monies owed the company by NBET.

Responding, Mrs Emontonghan Osaisai, Director, Investment and Sector Development in the ministry said everybody was all aware that funding  was  a general issue.

She, however said  presently  that  the matter  was seriously  being attended to by the  government.

She  debunked  the claim that Afam power plant was not captured in the budget, saying that some  parts of the ministries’ budget was rolled over .

“ It is not that it is not included in the budget, it is just that there are some aspects of the budget that are rolled over  because of  dearth of  funding, which we are all aware, it is still captured and it will be dealt  with,” she said.

On  Afam Fast power plant  that is 95 per cent  completion, she said the  project would not be abandoned because  Nigerians needed the  project to increase  power generation and distribution.

“We need it , because you  know that  the present administration’s mandate on assumption of office  is to ensure that  provision of  incremental power .

“Then to uninterrupted and then steady and I don’t think we have deviated from that mandate,” she added.

She said government had put some measures on ground to improving  the distribution angle, noting that government  was  trying to provide fund to  strengthen the distribution network.