22 April 2014, Lagos – The Chairman, Sepco-Pacific Partners Limited, (owners of Olorunsogo Power Plant), Dr. Deji Adeleke has disclosed that $25 million has been earmarked for maintenance and replacement of transformers on the plant.
He told members of the Senate Committee on Privatisation on oversight function to the power plant that the firm will ensure that it lived up to its promises.
In a statement endorsed by Head, Public Communications, Mr. Chigbo Anichebe, the chairman added that transformers have been purchased and are being imported to replace the two that were gutted by fire in September last year before the firm took over the plant. He expressed optimism that in the next three months, all eight turbines at the plant would work effectively and the plant would meet its generation capacity of 336 megawatts (Mw) for transmission to the national grid.
He said his company is aware of the maintenance issue at the plant when it conducted a due-diligence on the plant facilitated by the Bureau of Public Enterprises (BPE), adding that the firm inherited equipment that had not had any major maintenance seven years after commissioning. He said this is contrary to the recommendation of the manufacturers.
Adeleke said the company has embarked on an aggressive programme of a major overhaul of the plant based on a medium to long-term plans. To effectively carryout the programme, Adeleke said the firm had engaged a Chinese firm, Huafeng Electric Power Technology Engineering Company, as Operation and Maintenance (O&M) operators for the plant.
Speaking, Chairman of the committee, Senator Olugbenga Obadara said the lack of maintenance culture in public enterprises was one of the reasons for privatisation of such public enterprises.
He decried the poor maintenance culture, saying it greatly affected operations of the plant.
Obadara maintained that where there is adequate availability of power, there would be appreciable growth and development in Small and Medium Enterprises (SMEs) and growth in the economy.
Earlier, the committee had paid a courtesy call on the Executive Governor of Ogun State, Senator Ibikunle Amosun. While receiving the Committee in his office in Abeokuta, Governor Amosun said: “Nigeria to develop, it must be private sector driven.” He said adequate power supply would guarantee the growth of the economy and expedite the effective take-off SMEs. He urged investors in the power sector to be continually monitored and charged the Senate Committee not to relent on this.“Privatisation Committee had a key role to play in ensuring that the private investor run these businesses effectively,” the governor said.
– The Nation