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FG owes Egbin Power station N86bn

By Prince Okafor

Total indebtedness of Federal Government to Egbin Power Plc is now N86 billion.

This was disclosed by the Chief Executive Officer of the company, Mr Dallas Peavey, who said the figure represented the value of energy it produced and added to the national grid in the last six months, but yet to receive any payment.

Speaking during the company’s scholarship award programme to schools within Ijede community in Lagos State, Mr. Dallas said: “We only got 16 per cent of the total bills out of the total money on energy generated to the national grid.”

He lamented that electricity generation companies, GENCOs, are highly constrained by debt burden because it is frustrating power development plans in the country.

He stated: “No matter how much broad-minded you are and no matter the desire to serve your nation, if services are not paid for, the momentum to continue to serve will not be sustained.

“Industry operators are in dire need of funds as most of the monies used in acquiring the power assets and other post-privatisation investments came from the banks.

“But banks do not want to hear about any delays or the reasons for such delays. When the amount of the debt payment is due, they simply call for their money,” he said.

He further stated that the company has a total generation output of 1,320MW but this has currently gone down to just 425MW which is 30 percent of what should be generated.

He added that the company was considering other sources of power generation that would complement gas, such as Low Pour Fuel Oil, one of the products in the fractional distillation of crude oil.

Peavey said that the company had spent N760 million in the last three years on Corporate Social Responsibility (CSR) to communities within its area of operation.

He stressed that the company also spent over N120 million to offer scholarships to indigent pupils within the community of Ijede where it was operating.

Peavey said, “We put together the education scholarship programme to students in the communities to contribute part of our quota to their development.”

“It is part of our CSR, which takes care of over 25 pupils’ schools fees, textbooks and other required amenities for four years,” he noted.

 

 


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