From ISAAC ANUMIHE, Abuja

Chairman, Senate Committee on Privatisation, Senator Olugbenga Obadara has said that lack of maintenance culture in public enterprises was one of the reasons for  privatisation of such enterprises.

Speaking when the committee visited  Olorunsogo Power plant in Ogun State recently, Obadara  decried the plant’s poor maintenance history, saying it greatly affected operations of the plant.

The senator maintained that where there was adequate provision of power, there would be appreciable growth and development in Small and Medium Enterprises (SMEs) and growth of the Nigerian economy.

In his remarks, the Chairman, Sepco-Pacific Partners Limited, owners of Olorunsogo Power Plant,  Dr. Deji Adeleke,  said his company was 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). He said that his company inherited equipment   that  had no  major overhaul maintenance in  seven years contrary to the recommendation of the manufacturers.

Adeleke disclosed that the company has embarked on an aggressive overhaul of the plant based on  medium and long term plans. To effectively carry out the programme, the chairman said his company had engaged a Chinese firm, Huafeng Electric Power Technology Engineering Company, as Operation and Maintenance (O&M) operators  pointing out  that $25 million had been earmarked for maintenance and replacement of transformers on the plant. He added that transformers have been purchased and are being imported to replace the two that were gutted by fire in September last year before his company 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 mw for transmission to the national grid.
The Senate Committee on Privatisation, had earlier  paid a courtesy call on the Governor of Ogun State, Senator Ibikunle Amosun.

Amosun had  noted that for Nigeria to develop, it must be private sector driven. He said that adequate power supply would guarantee the growth of the Nigerian economy and expedite the effective take-off of SMEs in the country. He advised that  investors in the power sector should  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 runs  these businesses effectively”he said.

Recall  that the Bureau of Public Enterprises (BPE) in December 2013 transferred the ownership of Olorunsogo Power plant to Sepco-Pacific Energy Partners Limited. Olorunsogo power plant consists of eight  PG6581B gas turbines with associated generators and auxiliaries. The plant has a generation capacity of 336mw.


Source: Sun