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Monday, 20 May 2013

Federal Government To Reinvest Proceeds From Sale Of IPPS Into Transmission Infrastructure



The Federal Government continues to tout its  credentials of. Improving Power supply under its watch in the last 2 years.

This is despite that fact that the Independent Power Projects it is completing were initiated as far back as the Obasanjo administration.

On Friday the Niger Delta Power Holding Company the company created to oversee the Independent Power Projects decided it would push back the proceeds made from divesting 80percent of its shares in the IPPs into completing its transmission infrastructure.

It is not a new decision to plough back proceeds made from Federal Government shares of Independent Power Projects into transmission infrastructure that would ensure the extra megawatts being generated by the generation companies reach the average Nigerian.

At the moment there is a gap of about 4800 megawatts between what the transmission company of Nigeria can evacuate now and the 10,000 megawatts that government hopes will be generated by December.

Many still question the rationale behind pumping billions of Naira into completing the Power infrastructure only to sell it off but stakeholders believe that privatization of the IPPs is the best way to go.

But the privatization bring with it inherent problems the biggest of which is workers in the Power Holding Company of Nigeria who will have to be disengaged for the incoming private companies to take control.

At this meeting under the direction of Vice President Namadi Sambo, the seal has been put on privatization. And government is looking beyond to what it will do with the proceeds of the sales even though it does not know for now how much it will bring in now.

At the end of the day all government officials can assure Nigerians is that they will get a good deal from the sale of the proceeds.

Its been a long time coming so one can understand the impatience of Nigerians to see these promises go beyond mere words.

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