NEW YEAR MESSAGE 2018 – WE ARE DELIVERING ON OUR MANDATE

This is the beginning of another year, the year of our Lord 2018 as we ended 2017 People all over the world witnessed the cross over from 2017 to 2018 a few hours ago. Prayers were offered and celebration heralded the new year with pageantry all over the world with greater hope and aspiration for a better life in months to come.

We in NDPHC are part of this global excitement for the New Year. On behalf of the Chairman of the Board of NDPHC, the Vice President of the Federal Republic of Nigeria, His Excellency, Professor Yemi Osinbajo, SAN, the Board of NDPHC and the Executive Management team, I say Happy New Year to all our management and staff, contractors – EPC, Project Consultants and all stakeholders that have made NDPHC a beautiful bride in the Nigerian Power Industry today.

As the beginning of a new year comes with excitement, it also affords us an opportunity to reflect on the past year, to see where we have done very well and what we could have done differently for  better outcome. The beginning of the year also affords us an opportunity to set our goals with great expectation learning from the experiences of the past year. On a careful and deep reflection of our performance as a company in 2017 I can confidently say that NDPHC did very well in 2017 despite the seemingly daunting challenges in the Nigerian Electricity Supply Industry (NESI). In 2017 as always we enjoyed the unflinching support of the Board under the Chairmanship of H.E. Professor Osinbajo as approvals for our projects are given top consideration with dispatch. We also enjoyed the relentless support of the Honourable Minister of Power, Works & Housing, Mr. Babatunde Raji Fashola, SAN, in our operations. The Advisory Power Team (APT) in the office of the Vice President also played a remarkable role through project inspection and constructive reporting to the Board through our Chairman and the Executive Management Team at NDPHC all in determination to deliver on our mandates and give power to Nigerians.

Here in Niger Delta Power Holding Company Limited, (NDPHC) 2017 started on a very promising note having successfully transited from the previous management of the company to the current executive Management committee under my leadership.

At macro level, the power sector has done very well with available generation capacity now more than 7,000MW, enhanced transmission capacity that can wheel about 7,000MW and a consumption level gradually tilting towards a high level through various strategies by the managers and operators in the distribution segment of the power value chain. The Honorable Minister of Power, Works and Housing has given a purposeful leadership and direction to the power industry. The monthly Ministerial Power Sector Stakeholders’ Meeting, a forum that brings every stakeholder together to share their common and diverse challenges has been a potent vehicle for solving day to day operational challenges in the sector.

The power sector has been engulfed largely with liquidity challenges, which has a very serious negative implication for the growth of the industry but succor came from the President Buhari-led Federal Government through the N701billion payment assurance guarantee which now ensures the substantial payment of our gas invoices that hitherto accounted for the bulk of debt over hang in the industry

For us in NDPHC, 2017 was full of activities aimed at achieving the mandate of providing light to Nigerians through the completion of all on-going NIPP projects in the three segments of Generation, Transmission and Distribution of electricity infrastructure in Nigeria. The completion of these projects also helped to expand the capacity of the nation power infrastructure and ultimately the growth of the economy.

On a general note, we have done very well last year and I can say that the Executive Management Team have rededicated their resolve to improve on what was achieved in 2017 in all our activities.

GENERATION 

As at today with ten power plants (with eight on the grid), we are the single largest GENCO in the country with total installed capacity of 5,089.4MW. Currently we have plant availability of about 3,000MW on the grid subject to dispatch by the System Operator. As you are aware, six out of our ten power plants have been 100 percent completed namely, Olorunsogo in Ogun State, Ogorode in Delta State, Omotosho in Ondo State, Geregu in Kogi State, Ihovbor in Edo State, and Calabar in Cross River State. Gbarain in Bayelsa State has attained 90 percent completion (with one unit in commercial operations), Alaoji in Abia State 80 per cent (with all the gas turbines in commercial operations), Omoku in Rivers State 71 per cent while Egbema achieved 67 per cent completion level. For the eight power plants, the company has done creditably well in recovering the faulty units and in the overall operation and maintenance of the plants. We are also working seriously toward the completion of the second unit at Gbarain Power Station thereby bringing the total capacity of that plant to 225MW on the grid while completion of Alaoji Combined Cycle Phase that will bring additional capacity of 270MW with one block steam cycle is also in top gear.

In terms of gas infrastructure development, we have achieved 100 percent in nearly all our seven gas projects namely, gas pipeline and metering stations in Ihovbor, Gbarain, Calabar, Sapele, Alaoji, Geregu and Omotosho while completion level at Egbema is 80 per cent essentially waiting the completion of the power plant for commissioning. In our desire to ensure optimal performance of our Calabar Power Plant, NDPHC and our Calabar Generation subsidiary signed the amended gas supply agreement with Accugas Ltd. Our payment obligation under this GSA is secured by a partial Risk Guarantee (PRG) provided by the World Bank at the instance of the Federal Government in furtherance of the Federal Government’s support to ensure regular gas supply to power plants.

TRANSMISSION

Historically, NDPHC transmission projects have enhanced the wheeling capacity of Transmission Company of Nigeria (TCN). Today NDPHC has 112 HV transmission projects comprising over 1635KM of 330kV Double Circuit lines, over 720KM of 132kV Double Circuit lines,10 new 330kV substations across the country ditto Seven 132kV substations. We also increased the transmission capacity by 6,150 MVA of 330/132/kV transformer and 2,800MVA of 132/33kV transformers as well as expansion of 36 nos. 330kV and 132kV TCN substations.

In specific terms, NDPHC recently delivered the following transmission intervention projects.

  • Upgrade of Ajah/Lekki/Alagbon from 132kV to 330kV DC line -completed and energized;
  • Turn-In-Turn-Out of Ajah/Lekki/Alagbon 330kV DC line, completed and energized.
  • Turn-In/Turn-Out at Asaba on 330KV SC 3rd Benin/Onitsha transmission line-completed and energized.

Other recently completed NDPHC transmission projects includes,

  • 330kV Ikot Ekpene Switching station.
  • 330kV DC Alaoji -Ikot Ekpene Transmission line.
  • 330kV DC Calabar-Ikot Ekpene Transmission Line
  • 1x330kV Dc Ikot Ekpene- Ugwuaji Transmission Line (2)
  • 2x150MVA,330/132kV &2x60MVA,132/33KV Gwagwalada Substation.
  • 330kV DC Gwagwalada-East Main Transmission Line.
  • 132kV DC East Main-Kukwaba- Apo Transmission Line
  • 1x60MVA,132/33kV Lokoja Substation
  • 330kV Dc Ajaokuta -Lokoja-Gwagwalada Transmission Line
  • 1x300MVA, 330/132kV Alagbon substation
  • 1x300MVA,330/132kV Lekki substation

At Executive Management level, our hope and joy were rekindled when the President, His Excellency Mohammadu Buhari in his 2018 budget presentation to the National Assembly acknowledged the contribution of NDPHC along with TCN to boost transmission capacity of the country. “I am pleased to announce that since2015, the Transmission Company of Nigeria and Niger Delta Power Holding Company (NDPHC) has added 1,950MVA of 330/132kV Transformer capacity at 10 transmission stations as well as 2,930MVA of 132/33kV transformer capacity to 42 substations nationwide. With these additions the Transmission networks today can handle up to 7,000 Mega Watts (MW).” This was also reiterated by His Excellency address to the nation this morning. This commendation coming from Number one Citizen of this country means that our contribution is well noted and appreciated but above all it is a challenge that we do more for our country

DISTRIBUTION

In the electricity distribution segment, NDPHC has equally played an important role towards enhancing the capacity of infrastructure that wheel power to the ultimate consumers as indicated below. In general, 296 distribution projects were initiated across the country. These include, 33/11kV distribution injection substations, 1,712KM of 33kV lines, 4,540KM of 11kV lines, 24,999 number s of Completely Self-Protected Transformers, 3,970MVA Injection substations capacity added and 1,212MVA Complete Self-Protected (CSP) Transformer capacity addition.. In addition to the above projects, the current executive management also met 78 new intervention projects.

Though initiated by the previous management, we have in the last one year of our stewardship ensured that these projects are completed to enhance the spread of electricity supply to many consumers across the country. This effort saw to the completion of the following distribution substations and lines;

  • 1x15MVA, 33/11kV Injection Substation, Tambuwal, Sokoto State.
  • 1x15MVA, 33/11kV,1×7.5MVA Injection Substation, Fegge, Anambra State.
  • 5MVA,33/11 Injection Substation, Potiskum,Yobe State.
  • 1x15MVA,33/11kV Injection Substation, Gagi,Sokoto State.
  • 5MVA,33/11kV Injection Substation. Otta,Ogun State
  • 1x15MVA, Injection Substation, Angwa Dosa,Kaduna State.
  • 5, 33/11kV Injection Substation. Lamingo, Plateau State.
  • 2x15MVA Injection Substation, Zaria Road,Jos Plateau State
  • Construction of 33vV line from Oke Aro TS to Mowe Substation, Ogun State.
  • 2x15MVA, 33/11kV Injection Substation, Asaba, Delta State.
  • 5MVA, 33/11kV Injection Substation, Saminaka, Kaduna State
  • 5MVA, 33/11kV Injection Substation, Iloko, Osun State.
  • 1x15MVA, 33/11kV Injection Substation,Aminkanle,Lagos State.
  • 1x15MVA, 33/11kV Injection Substation, Abule Taylor,Lagos state.
  • 1x15MVA, 33/11kV Injection Substation, Elemoro, Lagos State.
  • 5MVA, 33/11kV Injection Substation,Bauchi, Bauchi State.
  • 1x15MVA, 33/11kV Injection, Substation,FarFaru, Sokoto State.
  • 5MVA, 33/11kV Injection Substation, Water Works, Gusau,Zamfara state.
  • 5MVA, 33/11kV Injection Substation, Otowhodo,Delta State.
  • 5MVA, 33/11kV Injection Substation. Ibusa,Delta State.

On Privatization of our power stations, the journey commenced in April 2013 and all the process were followed up till June 2014 when the preferred bidders emerged with an offer of $5.736 913,730 billion for 80 per cent share in the ten power stations. Liquidity challenges in the power market including macroeconomic issues have largely affected the progress of the exercise. In line with the objective of the government, the completion of the privatization of NDPHC Power Stations is on the front burner and three Power Stations in Calabar, Geregu and Omotosho in Cross River, Kogi and Ondo States respectively, are being concluded as a first phase of this exercise. This process will continue in 2018 with the target of completing the privatization of the remaining plants bearing in mind that preferred bidders for these plants have already emerged for 80 percent share sales.

SOLAR HOME SYSTEMS

You will recall that NDPHC is actively involved in the presidential initiative on Rural Solar Home Lighting Systems where 20,000 units of Solar Homes Systems (SHS) in under-served rural areas with no access to grid electricity supply is being implemented. Precisely on January 31,2017,the Vice President of the Federal Republic of Nigeria commissioned the Wuna pilot scheme of the SHS ,a community in Gwagwalada Area Council of the Federal Capital Territory (FCT). We are working hard with our partners and consultants to complete the deployment of the 20,000 units. So far over 15,000 units have been deployed in some identified rural communities across some States in Northern Nigeria.

We in NDPHC are not immune to the challenges that are affecting activities in the NESI. including the challenge of revenue shortfall in the sector. However as observed earlier the Federal Government has intervened through the provision of N701billion payment assurance guarantee. The Federal Government is also assiduously working on other other more sustainable strategies to address these challenges. One of such strategies is the power sector recovery plan (PSRP) which involves a performance based loan by the World Bank to reset the sector. We believed that in the months ahead some of these strategies’ or instruments when introduced will help to reset the sector and normalize the day-to-day operation of electricity generation companies – NDPHC inclusive.

In terms of project implementation, despite our resolve to constantly dialogue with failing contractors we still witness slow pace of work by some recalcitrant contractors. As 2018 is a critical year for project delivery by the Federal Government, we would not hesitate  to re-assign any non-satisfactorily performing projects for the purpose of meeting deliverable timeframe. We will continue with the same strategy to regularly engage our contractors while dialogue and negotiation will also be our strategy in addressing community issues and legal challenges that are threats to the delivery of our projects for the benefit of Nigerians.

For us in NDPHC, we have had our share of vandalism of completed projects and Transmission Lines. Failure of Discos to provide Distribution Substation operators to non-completed substations is still very much with us, failure to pick loads and even refusal to take over some completed injection substations are challenges we have been battling with since last year.  This Laissez-faire attitude of Discos to serve customers from the completely self-protected (CSP) transformers and failure to utilize already delivered High Voltage Distribution system also pose serious challenges to our Internally Generated Revenue (IGR).

We have continued to engage the staff on issues affecting welfare and day-to-day management challenges. Members of staffs are given opportunity to express themselves and offer suggestions where possible for management with the hope of improving on Management /relationship. On our part, we are looking at the issue of staff welfare, appropriate salary scale that will compete favorably with what obtains in the industry. We are also addressing staff imbalance according to the need of each department or directorate particularly on our core business.

Our mandate is to complete all the on-going projects started by NDPHC and to deliver power to Nigerians. We will therefore strive to create the enabling environment for our workforce to operate in so as to deliver on our mandate.

I, along with my colleagues on the Executive management committee appeal to you all to keep faith with this strategic national assignment.

We are confident that this year will be a better one for all of us in NDPHC. On our part at management level, we shall fulfill on all our promises and pursue those strategies that will enable us surmount all the challenges currently affecting us and move NDPHC to a greater height. We therefore implore all staff to put in their best for a result-oriented Year 2018.

Once again, I say Happy New Year to you all. I wish you safe journey in all your trips and God Bless.

Chiedu Ugbo

Managing Director/CEO

January 1, 2018.

 

 

 

 

 

 

 

 

 

 

 

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