Fresh hurdles are threatening to make the multi-billion naira 215 megawatts power plant in Kaduna to miss completion target for the third time. The federal government awarded the contract in November 2009 to General Electric and Rockson Engineering for a dual thermal plant using Low Pour Fuel Oil (LPFO) and natural gas, to be located in Kudenda, Kaduna. It had a December 31, 2013 completion period.
The contract missed the initial deadline for nearly two years due to lack of suitable trucks in Nigeria at the time to transport the turbines from Onne Port in Rivers state to Kaduna. However, as another deadline approaches, it was revealed that a “disagreement” has recently developed between the federal ministry of power and one of the contractors on the mode of fuelling the power plant. Sources said the disagreement could further extend the N23 billion project completion period. Official documents obtained by this newspaper shows that the power ministry had signed a memorandum of understanding (MOU) with Greenville Oil and Gas Company Limited in November 2014 to supply the Liquefied Natural Gas (LNG) required to operate the plant. More than a year later, the agreement did not transform to a Gas Sales and Purchase Agreement (GSPA) “because of the lacklustre attitude of some ministry officials,” multiple sources privy to the project said. A source told Daily Trust that the plant which was expected to take-off before June this year was allegedly being frustrated by the project office in the ministry headed by Mrs Briscilla Sabke. She is said to have issues with the trucking of LNG fuel to the plant. She is in favour of using Automotive Fuel Oil (AGO - diesel) which experts say would create additional cost of $70million annually to run the plant. They added that the additional cost apart, the gas pipeline to connect to the plant from the south will take years to construct and consequently cause more delays. But Mrs Sabke was said to have argued that it would take only two years to get the pipelines ready, insisting that trucking gas to the plant would destroy the road. Energy experts, who spoke to this newspaper, even said the plant had extended beyond six months of its completion timeline with an additional cost of $2million. The initial relocation of the plant to its current site, a source said, had already cost the government one million Euros. Some equipment are still at Onne Port awaiting clearance including the black-start diesel generators and other transmission equipment since 2015, it was learnt. The clearance delay was attributed to missing Import Duty Exemption Certificates (IDEC), a source said. Other factor that may delay the plant even if the fuel supply arrangement is complete is the incomplete power evacuation component that would convey power from the plant to the Kudenda substation. The contractor, Skipper is said to be owed N870million and four million Euros. Its 132 kilovolt substation being handled by the Rockson Engineering is incomplete while another 123KV transmission line to the Mando substation valued at about $6million is yet to be done, a ministry official said. When contacted, Mrs Sapke told our reporter that all queries should be directed officially to the ministry as she is not authorise to speak. A ministry official said the plant is designed since 2009 to be dual-fired because natural gas is not available in the area. “It can use both natural gas and diesel and if Greenville said there is an agreement, then an MOU is not the same with a contract agreement. They submitted a proposal on supplying LNG. It is an ongoing process,” a source said. But a Greenville official said several attempts to discuss the issues with Mrs Sabke were not successful. He added that the contractor had already incurred cost of over $200 million by setting up facilities in Port Harcourt and Kaduna for the fuel supply contract. Another source said the project manager’s attitude towards Greenville may
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