The Nation Newspaper

Tag: NDPHC

  • NDPHC gets new MD, EDs

    President Muhammadu Buhari has approved the appointment of a substantive Managing Director/Chief Executive Officer and two Executive Directors for the Niger Delta Power Holding Company Limited (NDPHC).

    This was contained in a statement issued by the

    Director (Press) in the Office of the Secretary to the Government of the Federation, Bolaji Adebiyi.

    The new appointees, the statement said, include Joseph Chiedu Ugbo – Managing Director/Chief Executive Officer, who has been serving in acting capacity.

    Mallam Babayo Shehu is the new Executive Director (Finance and Administration), and Engineer Ife Oyedele is Executive Director (Engineering and. Technical Services).

    Mr. Ugbo is a legal practitioner and infrastructure regulations specialist with extensive experience in electricity industry reform and privatisation.

  • NDPHC chief seeks support for indigenous gas firms

    To get the required volume of gas   for  thermal power stations, the Federal Government should support indigenous oil and gas firms to increase their output, Niger Delta Power Holding Company (NDPHC) Acting Managing Director Mr. Chiedu Ugbo has said.

    According to him, some of the indigenous oil and gas firms that are in the forefront of domestic gas supply include Accugas, GigaGas, Seplat Plc, and Shoreline.

    Ugbo, who spoke to The Nation on the importance of supporting the indigenous firms, said lack of robust mechanism for gas payment has made international oil firms (IOCs) that are major oil producers to shun local supply.

    He said: “Enormous resources are often expended in developing gas fields and the associated transportation infrastructure to deliver gas molecules for power generation. There is need for guaranteed payment for gas to ensure recovery of capital invested and return on investment.

    ‘’Also, given the poor payment history of the power industry, securitisation of the Gas Sales Agreement (GSA) payments has been a huge challenge for the consummating commercial transactions and achieving financial closure for the projects that requires drilling, gas processing and construction of pipelines.’’

    Ugbo added: “A lot of associated gas is being flared because the IOCs, who are the owners of these fields, are not interested in developing them under the gas aggregation framework of the government. There is thus the need for a well publicised framework to be put in place for an interested investor or developer to have access to this gas in an existing production sharing contract (PSC), oil mining lease (OML) or oil prospecting lease (OPL) as well as a ‘willing seller willing buyer’ arrangement encouraged. In essence, there must be a flexible application of the aggregation framework. This policy was put in place to jumpstart gas availability and has a regulated price regime,” he said.

    The NDPHC chief said under the policy, all IOCs/gas producers must allocate a portion of their gas production to the domestic supply obligation (DSO0 mainly for power generation before they can allocate any gas for other commercial commitments or obligations. Recently, there has been growing call for a ‘willing buyer/willing seller’ arrangement rather than the regulated price regime which now seems like a straight jacket for the industry, he added.

  • Fed Govt makes changes in NDPHC’s board

    The Federal Government has changed representatives of the six geopolitical zones on the board of the Niger Delta Power Holding Company Limited (NDPHC) that oversees the operation of the National Integrated Power Project (NIPP), The Nation has learnt.

    NDPHC is a special purpose company owned by the three tiers of the government to implement of the National Integrated Power Project (NIPP), which was established to fast-track the achievement of stable power supply.

    An industry source told The Nation that Northeast zone that was represented by Gombe State in the previous administration has been replaced with Taraba State, while Kebbi State replaced Kaduna State for the Northwest zone.

    Plateau State replaced Benue State for the Northcentral zone, and Lagos State represents Southwest zone as against Ekiti State while Edo State replaced Delta State for Southsouth zone.

    For the Southeast, Anambra State replaced Abia State. By the changes, the governors of the nominated states become members of the board.

    With the changes, what remains to constitute the board is the appointment of the executive directors. As a company owned by the three tiers of government, apart from the shareholders comprising representatives of the six political zones of the country, the Ministers of Petroleum Resources, Power, Finance, and Attorney-General of the Federation are also members of the board.

    However, shortly before the expiration of the immediate past administration, the number of executive directors was reviewed. The new structure created positions for four executive directors to head generation, networks, finance and accounts, and corporate services departments.

    The office of the Company Secretary/Legal Adviser was also upgraded to a director’s status. The old structure only made provision for two executive directors responsible for Engineering and Technical Services, and Finance and Administration respectively.

    The executive directors are also members of the board with the Vice President as the Chairman. Whether the current government would uphold the new structure is still to be made known.

    The non constitution of the board fully, according to the source, is delaying activities of the company. He stated that the government needs to fill the vacant spaces of the executive directors and confirm the appointment of the acting managing director to make the board fully constituted.

    Besides, the source said the new structure, which made provision for four executive directors, was to prepare ground for the implementation of the NIPP Phase 11.

    The NIPP Phase 1 focused on power generation from the thermal plants, which are powered by natural gas. The essence was to increase domestic utilisation of gas as well as reduce flared gas. The second phase was planned to centre on generation from hydro plants as part of the diversification of sources of power supply especially in the face of the rampant pipeline vandalism.

    “The project will centre on generation from hydro plants as against the Phase 1 that focused on thermal plants. The choice of hydro power is part of the diversification of sources of power supply, especially in the face of the rampant pipeline vandalism,” he added.

    The thermal power plants built under the NIPP Phase 1 include Alaoji (1,131.4Mw) in Abia State, Ihovbor (508Mw) in Edo State, Egbema (380.7Mw) in Imo State, Gbarain (253.8Mw) in Bayelsa State, Calabar (634Mw) in Cross River State and Geregu (506.1Mw) in Kogi State.  Others are Ogorode (507.6Mw), Sapele in Delta State, Olorunsogo (754Mw) in Ogun State, Omoku (264.7mw) in Rivers State, and Omotosho (512.8Mw) in Ondo State.

  • NDPHC workers back MD

    Workers of the Niger Delta Power Holding Company (NDPHC) have pledged their support to the new Acting Managing Director, Mr. Chiedu Ugbo.

    They denied media reports that they kicked against his appointments.

    The workers at a town hall meeting with Ugbo said they would support the new helsman to ensure effective delivery of projects under the National Integrated Power Project (NIPP) superintended by NDPHC to boost power supply in the country.

    According to the General Manager, Communication and Public Relations, Mr. Yakubu Lawal, the workers also believed that NIPP has played a vital role in the power infrastructure development across the country and assured the new managing director that they are ready to raise the bar so that all ongoing NIPP projects will be delivered within schedule and look forward to kick-start the phase II projects of the company.

    Acting executive directors and senior managers who spoke on behalf of the workers told the new managing director that NDPHC relates like a family and urged him to sustain the family ties in the company.

    “We are like a family, these young men and women are ready to work with you and support you,” they said.

    Ugbo requested staff to cooperate with him to sustain and increase the momentum of project delivery for the benefit of all Nigerians.

    s“I know that it may be difficult to adjust to this change considering the fact that everybody is used to previous management but we have work to do and need everyone’s cooperation to deliver the projects to Nigerians,” he said.

    Lawal said at no time did the workers protest or resist government plan to appoint outsiders as replacement for the sacked management of the company. He noted that the reports carried by some media organisations were false and were the reporters’ imagination.

    “The executive directors that removed, were appointed in 2015 contrary to the reporters’ claim of 2013 while the former Managing Director spent 10 years as Chief Executive Officer of NDPHC,” Lawal said.

    As part of the Federal Government’s plan to address the power situation in the country, the executive management of NDPHC was dissolved last week and an Acting Managing Director appointed to manage the company.

  • NDPHC gets new boss

    NDPHC gets new boss

    A new helsman has been appointed for the Niger Delta Power Holding (NDPHC). He is Mr. Chiedu Ugbo, who would act as it managing director.  The NDPHC supervises the National Integrated Power Project (NIPP).

    Ugbo replaces the former boss of NDPHC, Mr. James Olotu, who handed over last weekend at the company’s headquarters in Abuja.

    When Olotu was the helmsman at the NDPHC, he was able to build 10 mini power stations under the NIPP, including, 750mw Olorunsogo II, 450mw Sapele, 434mw Geregu II, 450mw Omotosho II, 450mw Ihovbor, 450mw Alaoji, 563mw Calabar and 225mw Gbarain, among others.

    NDPHC’s management and its Transmission Company of Nigeria (TCN) counterpart are in talks to sign an agreement on provision of 265mw of power to be specifically kept as spinning reserve to guard against system collapse caused by frequent attack on gas pipelines.

  • TCN, NDPHC to sign 265mw spinning reserve pact

    The  Transmission Company of Nigeria (TCN) and the Niger Delta Power Holding Company (NDPHC) are expected to sign an agreement on the provision of 265 megawatts (Mw) of electricity that will be a spinning reserve to guard against system collapse caused by frequent attacks on gas pipelines.

    The spinning reserve is meant to ensure the stability of the national grid whenever there is severe shortfall in power supply.

    The General Manager, Communication and Public Relations, NDPHC, Mr. Yakubu Lawal, said the two firms were fine-tuning a contractual agreement that will provide about 265Mw for spinning reserve from the power plants built by the National Integrated Power Plants (NIPP).

    Lawal said the reason for the agreement is to facilitate grid responsiveness during swings and disturbances on the transmission network. He said after 10 years of conception, the provision of spinning reserve and other ancillary services are being practised all over the world and Nigeria now largely relies on NIPP plants to provide the service.

    He noted that contrary to allegation of non-relevance, the NIPP is definitely not a failed project.

    According to him, the NPDHC has over 2,000Mw of generation capacity readily available for deployment as soon as vandalised gas processing projects are completed.

    He said: “Eight of the 10 power plants in the NIPP portfolio, along with associated gas transmission metering/receiving infrastructure projects to support commercial operation, have been commissioned and connected to the national grid contributing over 2000Mw of energy daily. While it is a fact that power generation is often disrupted by acts of vandalism of gas pipelines and transmission lines, the NDPHC does not offer such incidences as excuses.

    “The NDPHC has continued to operate these power plants in the interest of the Nigerian economy despite undesirable security challenges and accumulated debt of over N94billion owed it by the electricity market. “Tthat’s definitely more than a tangible contribution to the nation’s electricity supply. NIPP power plants also provide ancillary services in support of system operations, which is a contribution critical for stabilising the national grid.

    “It is noteworthy that the System Operator heavily depends on the NIPP for the provision of these critical services. Completed power plants include 750MW Olorunsogo II, 450MW Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain.  Imminently completed ones include 225MW Omoku, 338MW Egbema and 530mw 2nd Phase Alaoji.

  • Expenditures on NIPPs hit $5b, says NDPHC boss

    Expenditures on NIPPs hit $5b, says NDPHC boss

    The  aggregate expenditure on the National Integrated Power Plants (NIPPs) is now $5billion, the Managing Director, Niger Delta Power Holding Company (NDPHC),James Olotu has  said.

    Olotu, who spoke yesterday through the Associate Head of Generation,  Onuoha Igwe in Abuja during at the opening session of the company’s meeting with electricity generation  companies,   said by the time the conception is  fully on ground, “NDPHC or  NIPPs would have consumed “over $5billion on the aggregate.”

    He said in 2007,  the committee for building medium- sized power plants in the Niger Delta,  was originally funded with $2.5million following the approval of the National Assembly to use the excess crude oil account to fund the projects.

    Olotu said upon the committee’s study, the Federal Government decided that seven power plants should be built as medium-sized power plants in the Niger Delta utilising available gas  close to the plants, adding that the decision  was to transmit the power from the Niger Delta to the central part of the country.

    Olotu explained that it was expected that the grid would be built into the power plants, for the power to reach the beneficiaries, pointing out that the NDPHC owns the distribution component.

    He said as the company is contributing to the development and enlargement of the grid, as a whole, it  is equally building infrastructure on transmission network to close up the loop.

    Olotu said the  transmission system currently in place that is owned by the Transmission Company of Nigeria (TCN) at the 330KV level, ends in Jos and  Enugu , stressing that “the plant in Jos and Enugu is not covered by the 330KV. “

    He however said  by July, the double circuit which is built in Uguaja to loop the gap between Enugu and Jos would have been completed.

    “By the grace of God, between now and July this year, we should have that Eastern plan completed,” he said.

    Olotu, who blamed the recurring power shortage on vandalism of gas pipeline, said: “At any point in this chain, what we have been seeing in the past year or two, is persistent damage on the gas pipelines.

    “The moment those gas pipelines are disrupted, there is nothing to turn the gas to the power plants, and when the gas turbines are not working you cannot have the power,“ he said.

  • NDPHC prepares for NIPP Phase II

    The Niger Delta Power Holding Company Limited (NDPHC), owners of the National Integrated Power Projects (NIPP), is reorganising  for the implementation of NIPP Phase 11.

    The project will centre on generation from hydro plants as against the Phase 1 that operates on thermal plants. The choice of hydro power is part of the diversification of sources of power supply, especially in the face of the rampant pipeline vandalism.

    The General Manager, Communication and Public Relations, NDPHC, Yakubu Lawal, said the Board, at a meeting in Abuja, approved the implementation of the new structure, which was proposed at its meeting in August, last year.

    Under the new structure, he said the company has four executive directors  to head generation, networks; finance and accounts and corporate services departments. He added that the office of the Company Secretary/Legal Adviser has been upgraded to a director’s status.

    Mr. James Abiodun Olotu retains his position as Managing Director/Chief Executive Officer and the head of the new structure, he said.

    Lawal also dismissed in situations that the Board made the appointments ahead of May 29 swearing in of the new government to avoid changes.

    He said the report could cast aspersions on the integrity, credibility and competence of the chairman and directors of the NDPHC.

    According to him, the National Economic Council (NEC) in April 2013 approved the execution of the second phase of the NIPP projects, which comprise Mambilla hydro power project and 16 other identified medium and small hydro power projects to create a mix of power generation/supply system for the country.

    The Phase 1 NIPP projects have 10 new thermal power stations in the south.

    The second phase will contribute about 4,000 megawatts (MW) to the national grid. It has some critical transmission projects, which are expected to wheel power from the existing and new power stations as it has the capacity to wheel over 20,000MW to the power distribution chain. The projects are being assembled.

    According to the report presented to the Board of NDPHC, four power stations in the NIPP Phase One have been inaugurated by President Jonathan.

    They include Geregu II, 434mw capacity in Kogi state, Omotosho II, 500 MW capacities in Ondo state, 750MW capacity Olorunsogo II power plant in Ogun State and Phase One 504MW Alaoji thermal power station in Abia State. But Benin Generation Company and Ogorode with 450MW capacity each in Edo and Delta states are awaiting opening.

    Other projects for completion are the 21.5km gas pipeline Creek town to Ikot Nyong power plant; 18km  Ikot Nyong-Adiabo 330kV DC lines to evacuate power from Calabar power plant in Cross River State;  completion of 13km 132kv DC Adiabo – Calabar 132/33kV substation and reinforcement of this Calabar 132/33kV substation with 1no 60MVA 132/33kV transformer and bays to accommodate new lines from Adiabo;  completion of the upgrading of Jos 330/132/33kV substation with 1no 150MVA transformer, 1No 75MVA reactor and new 330 and 132kV bays provision to accommodate new lines in and out of Jos 330kV substation.

    Others due for completion are the 286Km 330kv DC Jos-Makurdi transmission line; new Makurdi 330/132/33kv substation; 222km 330kV DC transmission line Geregu-Lokoja-Gwagwalada, linking NIPP power plant at Geregu to FCT, 2x150MVA 330/132/33kV transformer substation at Gwagwalada in Abuja with a further 90km of both 330kV and 132kV lines to reach Katampe and Apo 330/132/33kV substations in Abuja, among projects.

  • ‘Manpower for NIPP’s substations ready by December’

    The National Power Training Institute of Nigeria (NAPTIN), has assured the government and the new investors in the power stations built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Project (NIPP) that it will complete training of personnel that would operate the facilities by December.

    Its Director-General, Mr. Reuben Okeke, told The Nation that the institute is training the personnel that will operate the 234 distribution injection sub-stations bought by the new investors in NIPP facilities as part of their equity, adding that by end of the year, the manpower would be ready. He said NAPTIN is training distribution sub-station operators that would operate both existing and newly acquired substations, adding that they would operate the injection substations for optimum performance.  He said the development became necessary to prevent hitches that arise from poor performance of workers.

    He said: “Over 290 injection substations have been purchased under the National Independent Power Plants (NIPPs) to help drive the initiative.  Out of these, 234 are ready for use and we need Nigerians to man or operate them.  Part of the reasons we flagged off a training programme for technicians in Lagos in October this year was to train people that would operate the substations that would be commissioned soon.

    “One of the companies contracted by the government to handle the issue told me that some of the injection substations would be commissioned before December. That is why NAPTIN is making efforts to train the operators before December.”

    He said the development will help in reducing the skills-gap in the industry, arguing that the sector cannot develop without the necessary workforce. According to him, the government has decided to adopt holistic approach to the training of workers in the sector for growth.

    “All the projects in the sector are going to be manned by well trained workers. The power generation companies (GENCOs) and distribution companies (DISCOs), the NIPPs and other projects in the sector would avail themselves of the opportunities in NAPTIN. The government does not want a situation where there would be dearth of skills in the industry because it has identified poorly equipped workforce as one of the critical problems facing the sector,” he added.

    Okeke said power generation and distribution companies are battling poor workforce, aside gas. He said resources such as gas, good workforce and others are critical to the growth of the industry, adding that the government is not leaving any stone unturned to provide a conducive environment for operators.

    The Bureau of Public Enterprises (BPE), has started the process of selling the plants to new investors. The plants with combined capacity of 5,000 (Mw) of electricity are expected to help improve power supply in the country.

  • ‘Non- completion of Alaoji, others won’t stall privatisation’

    The delay in the completion of Alaoji,Omoku and Gbarain power plants will not affect the sale of the 10 power assets under the NIPP, the  Niger Delta Power Holding Company (NDPHC) that superintends the National Integrated Power Plants (NIPPs), has said.

    The company has completed the construction of Omotoso, Egbema, Ogwode, Olorunsogo, Benin and Calabar, while Alaoji, Omoku, and Gbarain power plants are yet to be completed.

    The Bureau of Public Enterprises (BPE) has said the ongoing privatisation of the NIPP assets is being delayed by the problem of gas that had stalled the signing of the gas purchase agreements that would make the transactions bankable.

    NDPHC’s spokesman, Yakubu Lawal, told The Nation, that shortage of gas is the only problem delaying the privatisation of the plants. He said that non-completion of the three plants by the contractors has no basis with the sale of the 10 plants from which the government is targeting 5,000 megawatts (MW) to achieve its aspiration to generate 10,000MW.

    Lawal said that due diligence has been conducted by the companies that bought the plants, adding that the transactions was done in a transparent manner. He said: “There was a shares agreement between the companies and the government before transactions on the plants started. The buyers have carried out due diligence and know the state of the plants. It is not compulsory that the plants must be completed before the plants are sold.”

    He said the NDPHC has done a lot to make the plants look better, strong and effective, adding that the plants would improve power supply when they are privatised.

    The BPE’s Director General, Benjamen Dikki, said the country has a capacity for 11,000 megawatts, adding that power supply would improve when the infrastructure problems in the sector are solved.  Dikki said the combination of adequate gas supply to thermal and hydro-power plants would help in improving electricity supply.