Details have emerged on why the Jiangsu Communication Clean Energy Technology Company (CCETC) shut down the Ossiomo Power, a 95MW gas-fired facility in Ologbo, Ikpoba-Okha local government area.
Already over 100 subscribers of the Ossiomo Power have indicated interest to reconnect to the Benin Electricity Distribution Company (BEDC).
Ossiomo Power was shut down on September 1 and plunged parts of Benin City and environs into darkness.
The shut down was due to ownership tussle between CCETC and its Nigeria partners, the Ossiomo Power and Infrastructure Company.
Both partners are trading words on ownership of the power plant.
The CCETC accused its Nigeria partner, Ossiomo Power and Infrastructure Company owned by Dr. Uwa Igiehon, of violating its joint venture agreement which metamorphosed into the CCETC Ossiomo Power Company Limited (COPC).
A top Director of CCETC, who simply gave his name as Mr. W, said Dr. Uwa has 25 percent equity shares which was for the land and licences while the CCETC had 75 percent.
The Director said monies paid by subscribers were not paid into the COPC account as contained in the JV agreement but paid into the Ossiomo E-Technology account.
He stated that the power plant generates over four million kilowatts of electricity but gets money for less than two million kilowatts.
According to him: “We came to Edo State in 2018 and we signed the joint venture agreement with the local partner, the Ossiomo Power and Infrastructure. The equity was 25 percent and 75 percent. The 25 percent is from Ossiomo Power and Infrastructure and its equity is for the land and licences. They did not bring any money.
“After we signed the JV agreement and we rejected the Ossiomo E-Technology Company, Ossiomo was supposed to transfer the generating licence to the CCETC Ossiomo Power Company (COPC). Till today, they did not transfer those licenses to the COPC. They did not follow the JV agreement.
“All the $20m investment was done by us including the distribution lines. The distribution lines were built by COPC but the loan is from CCETC. From the start of the they did not pay the loan and the interest. COPC paid some interest but could not cover the loan.
“Our partner, Dr. Uwa, connected some customers along our 33kv lines and the customers paid to the account of Ossiomo E-Technology Company and not to the COPC account. The E-technology is from Ossiomo Power and Infrastructure Company. COPC paid the gas fee and the power fee did not come to the COPC account. The customers did not pay to COPC account. The E-Tech company will collect N100m and pay N50m to the COPC account.
“COPC is generating all the power but has no agreement with the customers using the power. The customers did not pay to the COPC account which is wrong. We requested the local shareholder to transfer all the customers to the COPC and changing the account for collecting payment to the COPC.
“Instruction to shut down was because we were losing lots of money and did not get any return on investment. We did not collect enough payment from the customers and the power already going to the customers. We do not know the customers using our power. The customers werenot cooperating with us.
“Edo state government brought nothing. They are our customers, we supply power to them. It is no problem for our customers to go back to the BEDC. This issue did not come from the customers. It is an internal issue. didn’t want to shut down the power plant but I do not know where my power goes to. I don’t know the customers. They only listen to Dr. Uwa and Dr Uwa told everybody that it is his power plant. I cannot go and check the customers to know how many kilowatts they have used already.
“Uwa did not invest cash. It is 100 percent investment by the CCETC. Under the Joint Venture agreement, Ossiomo Power and Infrastructure Company is a shareholder of COPC with 25 percent. We have lost a lot. We generating over 4 million kilowatts per month but we collect payment for less than two million kilowatts.
“The Edo government has not paid full payment. They are still owing us. Ologbo community is using our power and they are not paying any kobo. The outstanding is over N1.4bn. The community was connected by Dr. Uwa and not us. We don’t have any agreement with the community and other customers who connected to Dr. Uwa. I don’t know where the power goes to. How do we generate over 4 million but not enough payment.”
Last week, management of Ossiomo Powers said its Chinese partners were not co-owners of the power firm but its contractor.
Deputy General Manager of the company, Engr. Francis Ekwe, insisted that Ossiomo Power remained sole owner of the power generating plant, the transmission network, and associated gas infrastructure tied to the project at Ologbo, Edo State.
Ekwe said the contract executed by the CCETC in 2018 for the supply and installation of engines for the Independent Power Project (IPP1) does not transfer or confer ownership of any facilities to the Chinese.
Ekwe said Ossiomo Power held exclusive rights to the gas infrastructure and power facilities since 2008 and backed by statutory licences as well as approvals for power generation and transmission within Edo State.
He noted that recent moves by CCETC to assert ownership might be aimed at influencing state authorities and creating uncertainty around the operations of Ossiomo Power.
He warned that any attempt to sideline an indigenous operator in favour of a foreign contractor could undermine Nigeria’s local content policy and pose risks to energy security in Edo State.
