By Ediri Ejoh

Nigeria epileptic power supply is said to receive a major boost from the private sector, as Energy Company Nigeria Plc, ENCON, is set to commence work on the 144 Mega watt, MW plant at the Onne Oil and Gas Free Zone, in Rivers state.

The project is expected to commence before mid 2013, as a result of the company winning the bid for a 25-year power supply concession with the Nigerian Ports Authority, NPA, and the Federal Ministry of Transport.

The Executive Chairman of the board, (Dr) A. Ayoola, who made this known at the 7thAnnual General Meeting of ENCON, said the company has been selected as one of the power providers to construct a gas fired plant of initial capacity of 144MW to be supplied to the national grid. He said that about N250million has already been used at the preliminary stage to bring the project to fruition.

He revealed that the project is worth about N72billion, and would realize greater gains for shareholders for investing in the company, as it will bring about a quantum leap in return on investment, capital appreciation and a robust balance sheet.

“Numerous initiatives to improve efficiency and optimize existing power plants to implore revenue generation and customer satisfaction is furthermore pursued by the company,” he added.

Speaking further, he said the Ikorodu Industrial Power Plant, though available, did not resume power sale to its customer during the year as earlier anticipated, due to the non resolution of the contentious issues in the off take agreement.

He maintained that the introduction of MYTO2 in the year has made the grid market openly attractive, thereby broadening the market for electricity, and paving the way for the company to explore the possibility of connecting the Ikorodu plant to the national grid as an alternative solution for ENCON, just as a bilateral agreement with the Ikeja Distribution Company is being negotiated for the sale of power from the plant.

In the 2011 financial year, two out of the company’s five power plants – the Unipower Agbara Limited, and Ilupeju Power Limited, supplied power to their customers fully.

The Nigerian Bottling Company,(NBC), which was added to the company as one of its prime customers for the supply of 3MW power for an initial off take period of 5 years, commenced commercial operation in the first quarter of this year.

However, the company lost its Ewekoro Power generating contract which was terminated by Lafage Wapco upon the completion of its own power plant.

The Chairman further explained that ENCON achieved a profit before tax of N559million in the current year or a 73% improvement on the N324million recorded in 2010. The increase he said, is as a result of the gains which arose from the divestment in Island Power Limited, which increased the profit after tax by 476% from N89million in 2010 to N519million 2011.

He said ENCON’s future growth plan will be driven by the two strategic power projects – the Onne Oil and Gas Free Zone and Ikorodu Phase two.

The company moves to rehabilitate work at the OKIPP Limited as the company had set to acquire 66MW power plant for captive power generation to the paper mill when commercial operations commences in 2014.

Also speaking, a member of the board, Alhaji Musa Ojeifo, said the market approaching maturity and the evolving privatisation programme are  changing the dynamics of the sector, adding that ENCON has evaluated its strategy and making every effort to positioning the company in the new competitive electricity market.

“Our strategy is now to transit from scientific power development to grid which is the main market in the electricity world. As a result of this shift, we have been laying low because we had to make sure everything is moving strategically as planned before we come publicly. In another three to six months, great news is going to be heard concerning the company in terms of bringing some project to the table.”