In spite protests by Power Holding Company of Nigeria (PHCN) workers over government’s decision to hand over the management of the Transmission Company of Nigeria (TCN) to the Manitoba Hydo International, the Federal Government has gone ahead to sign a deal with the Canadian firm.
The three-year management agreement was signed in Abuja with the Director General, Bureau of Public Enterprises (BPE), Bolanle Onagoruwa, representing the Federal Government.
According to the DG, the key objectives of the $23.7million contract is to serve as stabilization of the national grid, reduction in electricity losses during transmission, provision for the achievement of certain predetermined targets that would improve grid security, general performance, cultural change and staff re-orientation.
Other objectives include provision for reward and penalty clauses as incentives for success; provision of efficient management of government investments; ensuring adequate and equitable generation dispatch according to a fair merit order based on sound regulatory principles; ensuring fair market settlements between electricity traders; and provision of skills and expertise transfer to Nigerian counterparts who will serve as deputy and other positions to the management staff of the management.
“With the signing of the agreement, the Federal Government expects the management contractor to mobilise and resume on Monday, July 30, 2012 with all the eight key personnel and the associated support staff,” Ms Onagoruwa said.
Minister of Power, Barth Nnaji, said workers have nothing to fear about the ongoing reform, as it would bring multiplier socio-economic benefits to the country, particularly for the workers who would build on their technical competences and skills in the international environment in the long run.
“If we do things right, TCN of Nigeria can have TCN International, and by that we would have gained competence, best practices and we will be able to sell our competence elsewhere. That is something we should aim at”, the minister assured