To Get Personalised contents and be able to add items to your favourites, please Sign In or Sign Up          

Investors to take over PHCN in July

News » Business



Govt releases MYTO funds

Winners of the successor firms unbundled from the Power Holding Company of Nigerian (PHCN) are to assume possession of the companies by July, the Minister of State for Power, Hajiya Zainab Kuchi, has said.

Hajiya Kuchi said the new date, which is in line with the Bureau of Public Enterprises’ (BPE’s) timeline for the privatisation of PHCN, was chosen to allow for the resolution of outstanding issues between PHCN staff and the Federal Government.

Kuchi, who spoke to reporters in Abuja, noted that the ministry had taken over the challenges and addressed them.

According to her, the fund for the workers’payment is available and the ministry that is computing the data would pay the workers in June.

She said: “We are finalising on labour. The labour is what is standing between us and handing over. And all the issues that were there have been addressed. We are on payment to a certain level and once the payments issues are finalised, which we hope will be June ending, we will definitely be handing over to the successor companies by the end of July.

“That is the conjecture that we have here and that is the stand of BPE. BPE has a timeline, but this was stretched forward because of the labour issues that we needed to address here.

“But we have taken over all the problems. We have addressed all the issues. The funding is there for the payment of labour, all they are doing is data computation and as we are done with this, the handing over processes will take place.”

The minister, who clarified what she told the Senate Committee on Power on Wednesday, said there were projections that by December last year, the privatisation process would have been concluded. Thus there was a zero allocation for the distribution and generation companies.

But the situation, according to her, “is being addressed through the release of (Multi-Year Tariff Order (MYTO) fund for the transition period until handing over.”

On when the Federal Government would supply 10,000mega watts in the country, the minister said though the ministry was generating 10, 000mw, it would supply in 10,000mw next year.

She added: “By our projection and by the data available by the Transmission Company of Nigeria, we will reach 10,000mw by December next year- 2014 – if we succeed. We are depending on the Transmission Company of Nigeria because right now, we are generating up to 10,000mw, but the wheeling power is what we are trying to increase its capacity.”

The minister explained that the gap between generation and supply is because of the “rot” that the transmission section suffered.

She said the Niger Delta Power Holding Company has been trying to revive the infrastructure, which has been down.

Continuing, Kuchi said following the rehabilitation of the companies, “we have about 10 NIPP projects that are going to be commissioned.”

Besides, she said with the additional power supply, which the Federal Government is expecting from the Africa Development Bank and the Europe bond that the government has just finalised, wheeling in 10,000mw be attainable next year.

She noted that the ministry is maintaining a deliverable generation capacity of 4,500mw.

Article Credit: the

Updated 6 Years ago

Find Us On Facebook

Tags:     Investors to take over PHCN in July