Federal Government threatens to revoke NIPP contracts

The Federal Government has threatened to revoke contracts of companies that handle jobs under the National Integrated Power Projects (NIPP) that fail to attain 50 per cent completion status by June this year.

Vice President, Namadi Sambo, who issued the threat at the 21st Board Meeting of the Niger Delta Power Holding Company (NDPHC) in Abuja, said such contracts would be re-awarded to other companies that show the competence to deliver.

Mr. Sambo frowned at the poor performance of contractors handling power transmission projects across the country, warning that government would not hesitate to sanction culprits.

He summoned governors of the South-South zone as well as those of Imo and Abia, to a meeting to address security challenges facing power projects in their domains, particularly problems associated with the right of ways and the timely delivery of power projects in their respective states.

The Vice President further directed the management of NDPHC to compile a list of delinquent contractors and consultants, and recommend appropriate sanctions to be meted out to them if their projects were not completed by the end of the year.

He noted the current low supply in gas by the multi-national oil companies, and urged the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Austen Oniwon and the Managing Director of its gas subsidiary, Nigerian Gas Company (NGC) to work with Chevron Nigeria Limited and all other oil companies to ensure availability of gas to the power projects.

Mr. Sambo said adequate supply of gas to the various power projects would enable government to meet set targets of the programme for power delivery to the nation.

The News Agency of Nigeria (NAN) reports that the board also approved some of the requests made by the management of NDPHC, including the payment of “P. B. Power/Jiyoda invoices’’ transferred by the Power Holding Company of Nigeria (PHCN) to NDPHC in respect of project consultancy services for the construction of Alaoji Phase 1 power plant.

The board also approved the Interim Operations and Maintenance Services for the 451mega watts (MW) Sapele Power Station in favour of Marubeni Corporation and Oloronsogo Power Station.

It warned that it would no longer approve any new projects to allow the NDPHC must concentrate on urgent delivery of existing contracts aimed at raising the level of electricity generations and supply to above 5,000 MW before the end of this year.


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