SETTING THE RECORDS STRAIGHT: MINI-POWER PLANTS OF OGDs ADMINISTRATION NOT OBSOLETE -Amosun Plans to sell plants to friends Now that the Ogun State Government through the Commissioner for Finance has finally submitted that the Mini Power projects conceived and initiated by the Otunba Gbenga Daniel administration, would now be sold out because they were alleged to be obsolete equipment. If we recall, sometime in November, 2011 the Amosun government had also alledged that the mini power equipment as procured and installed, have never been used anywhere in Nigeria before. It is therefore important to reiterate again and re-emphasise to Nigerians, especially Ogun State citizens on the following facts on the subject matter: Firstly, we reconfirm that all the equipment and their respective plant houses were according to certain specifications and designed by accredited external Consultants in the Industry and were procured new; of course they cannot and we maintain, the are not obsolete, but with the best technology available and easier to maintain. Similar equipment have been successfully installed and currently in use, in large industrial facilities in Sharada Industry District in Kano, and Ikorodu to mention a few. Indeed one of the 23 mini-power plants locations, the 7mw Oke-Mosan Mini Power Plant that was commissioned by the OGDs administration, has been servicing the Amosun governmentt since May 2011 without hitch. Infact, we are of the opinion that the Government would have felt satisfied with its performance, as they later extended the service coverage area from Oke-Mosan to more areas that were not even contemplated in the initial plans, especially to cover the private Educational Secondary School, along the famous Abeokuta-Kobape-Siun-Sagamu Expressway, where the sons and daughters of the Governor attend. Whether the school authority pays Ogun State Government for the 24/7 energy now being generated and distributed via the so-called obsolete plant, is shrouded in secrecy. Or the supposed tariff payment is on a barter exchange as a form of special discount on School fees that Amosun is ordinarily and personally expected to pay for his wards in the College. The mini-power projects were conceived for the following reasons: (1) Sometimes between 2005-2006, Ogun State and indeed Abeokuta the State capital, was thrown into total darkness for a continous and unprecedented 10 days. Such precarious situation from PHCN, almost resulted into serious epidemic due to non-functional Water Works Schemes, as the installed alternative diesel-powered generators that were supposed to be on standby became the main source of power (in fact there was this 2.4MVA generator which uses approximately 3 drums of diesel every one hour). And because of the epileptic performances of this standby generators installed in almost all the urban water schemes in the State, the Executive Council of Ogun State government then decided to provide independent captive power plants on perpetual running turbine that can produce the energy required for each of the urban and semi- urban water schemes across the State. Prior to this, all major rehabilitation, upgrading and refurbishment necessary for these Urban Water Schemes, inherited from the previous administration of Chief Olusegun Osoba, were diligently continued and completed, while new ones were also introduced and implemented via funds (loans and grants) secured through the World Bank Assisted Programme and the Federal Ministry of Water Resources simultaneously under the National Urban Water Sector Reform Project (NUWSRP). Therefore, all that was required to guarrantee all-year-round constant water supply to all consumers in the State, were duly executed. However, the only important missing link for the water schemes to operate at their maximum capacity remains the steady, but continous power supply from the National grid. Water Schemes and electricity are like siamese twins any day. There is a cybernetic relationship between them. Hence, the technology of hydro power stations. Therefore, the near epidemic situation of 2006 became something that the OGDs administration would not want anybody in the State to experience again. This however informed the aggressive posture and actions dedicated to combat the epileptic power shortages in the State particularly at locations where the Urban and Semi-Urban Water Schemes are sited. These integrated power projects were conceived, planned and categorized into three stages in the following order: > (a) The provision of dedicated PHCN lines to the Water Schemes, to guarrantee some kind of steady supply from the National grid whenever it is available. At this time, the total energy demand in Ogun State were in the range of 120Mw per day. But the reality is that what comes to Ogun State on a good day sometimes range between 15-30mw, and this, at good times comes at maximum of 4hrs daily and not even continous. However, dedicated lines were effectively and practically provided for the main Ogun Water Scheme at Araganga, Abeokuta, during this time, while machinery and due process for other schemes, were put in motion. But due to non availability of funds, brand new smaller rating generators were procured for these schemes, at least to get them running for minimum of 6 hours daily, until the proposed mini-power plants were installed and commissioned. > (b) The specification, design, procurement and installation of the required rating of power plants, for the Urban Water Schemes. Reputable external consultants in the Energy Industry were retained by the State Government, to scout and recommend required power equipment with respective ratings for the approved locations, ancillary provision designs and other engineering specifications for the project completed. > Indeed official visits to locations in Nigeria, where similar plants have been installed and which were subsequently specified by consultants, were undertaken by top government officials including members of the then House of Assembly Sub-committee members on Water Resources. It is however important to state that the reconaisance visit took the State officials to three industrial locations in Kano, Ikorodu, where these similar plants have been the major source of power for the respective industries non-stop for more than 15 years, with little or no maintenance or major technical challenges. These equipment uses LPFO, gas or diesel as optional fossil fuel to power the mini turbines. While the consultants on State retainership confirmed the manufacturer of the turbine as CSI of Nnigbo China, the various land survey site locations for the proposed plant house structures were undertaken. Also procured were the various structural, mechanical/electrical engineering designs by the consultants. All of these including the bill of quantities were reviewed, revised, adopted and approved by the State Executive Council after thorough review by the State Energy Council, which comprised all the top state civil service officials from all related agencies, including Ministry of Finance/Water Corporation, and subsequent State Tenders Board recommendations. Part of the contractual terms with the manufacturer and its Nigerian subsidiary signed, are the customised-manufacture of the turbines, factory training of 15 Ogun State civil servants (Engineers & Technicians) during the factory production of the turbines and for pre-delivery testing, delivery of the complete equipment as specified including supply of 2 years maintenance spare parts for servicing, construction of plant houses, installation/ commissioning of the plants and management of the plant for 5 years for the already trained 15 officials to take over. It should therefore be noted that the civil servants ( Mechanical/Electrical Engineers) that were trained in Nnigbo, China, on the two seperate occasions, with respect to Contract Agreement, were drawn from the then State Water Corporation, OGSEP, Ministry of Water Resources and Ministry of Special Duties respectively. > While all the complete equipment for the 23 mini-power plant locations across the State including its accessories and the 2 years Maintenance Spare Parts were delivered to Government by the approved Equipment Credit Procurement Supplier. In the meantime, the Standard Organisation of Nigeria (SON) issued an import quality guarantee certificate, based on their statutory overseas inspectors agent report of the manufacturers production record. Indeed without this quality certificate, no commercial bank in Nigeria will open any letter of credit for the manufacturer to commence production. > However, the issue of being an obsolete equipment does not even arise in the case of these equipment, as all turbines engines all over the world, use a single and old technology of combustion theory. Since this technology was discovered in the 17th century...., this has been the only technology in the world to date that drives engine to produce power. Anything that looks modern around turbines and generators are in the foundry moulds, electrical/gear panels. We therefore stand to be corrected in this assertion. > (c) the third leg on this project, was designed around the maintenance/management of the plants during and after the mandatory 5 years Management periods signed with the Chinese manufacturer- CSI INTERNATIONAL. > Because the State Government believed that no matter how good a project is, in terms of execution, if the maintenance/management manual is faulty or non existing, the goals and objectives of the project can never be achieved, while the set derivates anticipated from the optimal performances of the equipment, can never be achieved. > It was based on this set goal that, a dedicated and well equipped mobile maintenance vehicle was procured along with other plant equipment/ 2 years maintenance stock spares, to access all locations at request, with the intention of a train the trainer model, as human capacity resource growth in this industry, for our State. > In the meantime, the State Government during the conceptualization of the project, indeed made provision of excess energy rating in the designs of each of the mini power plants, with the intention to service the respective neighborhood where the plants were located. It is anticipated, that the excess energy generated from plants serving Ota, Yemoji, Papalanto, Okemosan, Araganga Water schemes etc, will be extended to surrounding commercial/housing estates on tarrif paying basis, to reduce the expected and initial running cost of the plants. We were therefore happy when the new administration of Amosun in Ogun State, commenced the power distribution extension network from the Okemosan 7mw Mini-power plant to several government housing/resident estates and some commercial centres along Abeokuta- Kobape-Siun Expressway, up to Day Waterman College premises. We are however not in a position to comment on whether those connected private consumers along these routes were charged any tarrif-fees as planned. > However, for the Ibikunle Amosun Government to operate within the ambit of the statutory laws, as it relates to the Nigerian Electrification Regulatory Commission (NERC) acts, the Ogun State Government under the Otunba Gbenga Daniel, via its investment arm-Gateway Holdings Ltd, was implored to enter into a joint venture partnership with Gateway Distribution Company- a private engineering concern, with the intention to apply for a distribution licence. After about 15 months review, the NERC finally approved the first private Electricity Distribution Company in Nigeria, to Gateway Electricity Distribution Co Ltd. > If this company is encouraged to operate as conceptualised, extra income to the State government will be realized directly from the joint venture operation, as energy will be procured from the State government mini-power plants and will be sold at statutory tarrifs to consumers by the new Gateway Distribution Company. >We will assume that all the consultants and all government personnel trained in China on these projects are still in the services of the State government, and as such could be contacted to give a through appraisal reports on this unique project that had been envy for other States to copy. Despite the fact that the Ogun State mini-power plant especially the 7mw Okemosan plant, was the only one completed and commissioned out of the 23 plants procured, before the new administration of Gov Amosun got inaugurated in May 29th 2011, it remained the only operating independent power plant in Nigeria today, that is generating and distributing power to captive electricity consumers continously. > On a final note, it was the desire and expectation of a responsive and proactive government of Otunba Gbenga Daniel, that the Amosun administration will continue on the progress made so far on this very important project, especially on the outstanding 22 mini-power plants of which the whole equipment needed for their respective installations have been delivered and safely warehoused, while the development of the plant houses and its ancillaries, were at various stages of constructions. Information reaching us however indicate that the new government does not want to continue with these developments of the mini- power plants, despite the huge financial cost already incurred, while all the civil servants specially trained abroad on the maintenance/management of the plant have either been transferred out of the only plant commissioned at Okemosan, or sacked for being tagged as OGD boys. Persecution and victimization on innocent civil/public officials continues. We are now been told that Government intends to sell the outstanding power plants yet to be installed to friends and associates of Governor Ibikunle Amosun for paltry sums of money or at give away prices. This act if carried will be termed prodigal by all standard and categorized as part of the vendetta mission to destroy any or all OGDs legacies and projects, and should be resisted by all well-meaning citizens of Ogun State. > We therefore reiterate that the government has no justification to discontinue with this power plant project, as government all over the world is a continuum. Why cant we in Nigeria for once draw lessons from the Construction of the Capitol Hill Complex Building in Washington DC, USA, where the National Legislative arm of the American Democratic Governance and Politics operates. This major construction works was commenced in 1793, while in November 1800, the US Congress had its first session in the completed portion of the North wing. In 1850, other portion of the North and South wings were completed. Imagine the many successive governments that contributed their own quota without halting the development projects, to making the US Capitol and its stately dome the international symbol of the US democratic representative, that is of good envy to other nations of the world. > If we dont heed this sincere advice and learn good lessons from the American example as above, we may therefore start worrying at this stage, on what the Amosun successor will also do to all the current projects and policies after May 2015.
Posted on: Fri, 24 Jan 2014 11:26:49 +0000
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