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| Victor Udo |
The managing director of Ibom Power Company, Mr. Victor Udo spoke with newsmen, on the vision of the company and other issues…Excerpts
What is your comment on the improved power supply in Akwa Ibom State?
The magic is the expertise, experience and commitment of the governor, the superior performer. The governor’s expertise has been able to leverage on what his successor, Senator Godswill Akpabio did. During the last administration, the building blocks for steady power supply was made. We have gas in Akwa Ibom, an agreement was reached between Seven Energy and Frontier to establish a gas processing plant in Esit Eket and pipe it to Ikot Abasi. We also have a power plant that is functioning, working very well now. We are producing over 100 mega watts. We have also have transmission lines; we have built one from Ikot Abasi to Eket. In addition, the state government has also invested in the distribution significantly, by making sure almost all villages and communities have transformers and are connected to the national grid. The government has also put money into the power distribution when assets of distribution companies were privatised. What we are seeing today did not just start with now, it started when the governor was the Secretary to the State Government. When Governor Udom Emmanuel came in as the SSG, he started by making sure that the right people are put in the right place. He understands the system because he was in charge of the energy and power desk at Zenith Bank.. To me, that is the magic, being able to put things together. He knows whom to call; when he assumed office as governor, he met with the people in the distribution company and told them what his expectations and that is why we are seeing improvement in the supply of power in Akwa Ibom State. Since the governor came to power, we have not had a day Ibom Power Company is not running; what this means is that there is always power in Akwa Ibom, even when there is no power in the national grid. So, that is something we should be happy about and give the governor the highest credit. And also our personnel who are running the plant, making sure that they do everything possible to maintain the plant.
What about power supply in rural communities?
Akwa Ibom people should thank God of for the continuity in government from the former governor to the current administration of Governor Udom Emmanuel. He was part of the last administration and believes in connecting all parts of the state to the national grid. Some people in the communities, including people from my community have told us that they have experienced steady power supply in recent times. More than 90 per cent of our communities are connected to the national grid. It would be recalled that towards the end of the last administration, government restored power to Ikono and Ini Local government areas, where there was no power for more than four or five years.There is a big picture plan to make sure that all our communities are connected to the national grid and Akwa Ibom is a small place. We know of few communities where there are no transformers and infrastructure, but in total, we have 90 per cent power supply in the communities. With that, people do not have to migrate to the urban centres. More than the distribution infrastructure, Ibom Power Company, has two phases; phase one has installed capacity of 191 mega watts, although two units were not running as at the time this government took over, but we are working on them. But most importantly, the governor is looking at encouraging private investors to come in and invest, because government cannot do everything. Currently, we have received people who have come in to see the power plant. With private money coming in through investments in infrastructure; the building blocks, which we already have; we are going to see more steady power supply in Akwa Ibom.
At what stage is the phase two now?
We are going through licencing and site preparation; that is what we can do for now, but the expectation is that we would have a private investor and most importantly, we have to provide the enabling environment as a government for private investors to come in and invest. Good enough, the gas infrastructure is there. And there is also a 330KV transmission infrastructure that the federal government is building at Ikot Abasi and it passes through Mkpat Enin, Oruk Anam, Abak to Ikot Ekpene; At Ikot Ekpene there is a big transmission hub; power is coming from Calabar, Aloaji, Afam, and most of those power would be exported to the North. Our vision is to make sure that Akwa Ibom becomes the power exporting hub in the country. So, with that, we should have enough for industrialisation.
Is it true that only one of the three turbines was installed?
No, that is not true; the three turbines have been installed, but not all were commissioned. Two have never been commissioned and we are working to get the third one commissioned in the next few months. The first one was commissioned under the previous management, but it had a catastrophic failure and we are also looking at how we can bring it back to life. I am sure that soon, we would have all of them commissioned and running. I want the plant to run successfully as a private company as a going concern, generating revenue and using that revenue to expand and even pay government dividend. That is the kind of company I believe the governor would love to have in Akwa Ibom State. With all the infrastructure in place, the governor has assured Akwa Ibom people of steady power supply. One cannot do industrilisation without power because he understands the importance of power in the development process; there would be power for sustainable development; for the well being of our people.
Did Akwa Ibom lose out in the process that threw up PHEDC as the distribution company?
Akwa Ibom did not lose out in the bid for the power distribution company. What actually happened was that the BRAC States, that is Bayelsa, Rivers, Akwa Ibom and Cross River got together when the federal government was privatizing only 60 per cent of the distribution companies. There were 11 distribution companies in the country. So, the one that serves the BRAC states is the Port-Harcourt Electricity Distribution Company, PHEDC. The four states got together and invited a technical partner to form the Four Power Consortium. It was decided that each of them was going to bring in 12 per cent of the the total 60 per cent privatised by the federal government. So, the technical partner and the four states, bidded for the distribution company. I did that transaction for the state; we competed with others and won. Therefore, PHEDC is jointly owned by the four states, the core investors and the technical partner. Maybe, what people do not know clearly is the kind of influence Akwa Ibom has in the management and the control of PHEDC. Akwa Ibom does not have not have 100 per cent influence in PHEDC as in Ibom power, where it owns 100 per cent stake. The state governor appoints the board members and management team and has the right to fire anyone. Putting it straight, PHEDC is partly owned by Akwa Ibom, while IPC is wholly owned by the state.
What should be the responsibility of host communities when electricity distribution infrastructure is damaged?
There are two types of problems; If it is a transmission problem, that means that the host community cannot handle it. The state might not handle it as well because the tranmission company of Nigeria is the one that is responsible for the national grid. Any voltage above 33 KV is managed by TCN. There are cases of damages to distribution companies in many communities, but the embarrassing truth is that many distribution companies are not properly managed. They are supposed to provide the infrastructure, materials and the services; and then charge the consumers. But it appears they do not have the money and resources they need. So, when there is damage to distribution facilities, the communities have to get together and fix it. And this is allowed by regulations. The industry is regulated by the Nigeria Electricity Regulatory Commission. If a community does that, the distribution company should give them a discount. So, when there is a damage to any facility, members of the community could help if they can so that they would not stay in darkness. But more importantly and proactively, it is better to be preventive. Having said that, I want to say that evil-minded persons go and inflict damages on transformers by draining oil from the facilities. These transformers are cooled by oil and when there is no oil, they would get burnt. Another cause of damage to a transformer is overloading. When it packs up, it is either that the state government intervenes and gives a new transformer or the community would sponsor it. In fact, the state government is not supposed to be doing that, but you see government doing it out of goodwill, the transformers are bought and distributed to the communities.
What is the projection for the future?
In the next one year, we would have gotten all the three turbines of phase one running at full capacity of ‘191 mega watts. In less than three years, we would have gotten the second phase of the plant running. So, I expect to see that happen. There is a 540 mega watts plants at the Aluminum Smelter Company of Nigeria, ALSCON. We expect to see the federal government 330KV transmission infrastructure completed in the one or two years to that ALSCON, Ibom Power phase two can evacuate all the power generated in the state. There is also a plan by ExxonMobil to build a power plant at Ibeno. So, with all of these, there should be sufficient electricity. We are talking about Ibom Seaport, Ibom industrial city, and there is going to be some power projects there. We are looking at a situation where we have a 330 KV line looped around the entire state. I see Akwa Ibom in the next five years serving as a power-exporting hub. I am saying this because we are the gas hub. If we can harness that very well, instead of piping gas, we convert it to electricity and transmit. And that would add more value to the state and create more jobs.
What about transmission issues?
As I said, there is an existing 540 mega watts power plant at ALSCON, but the company cannot evacuate it because there are no evacuation lines today. That would be a significant addition to the state and country if it had been evacuated. Once the 330KV transmission line linking Ikot Abasi and Ikot Ekpene is completed, it would serve us better. Under the current power structure in the federal level the primary focus of state government is rural electrification. Even at that, the federal government is also involved. The federal government regulates transmission and distribution of electricity.
How did you receive the news of IPC’s inability to pay a loan it borrowed from a commercial bank?
There was money that was borrowed before I came in, but the fact is that when you run a project of this magnitude, you borrow money to execute it. When you have a big project like this and you do not have the money available to execute it, you go for a loan. If the plant was run effectively from the beginning and debts were paid, there would not have been an issue. We all know that issues of funding and has been an historical issue that lead to the privatization of the industry. You would recall that the federal government through CBN had to intervene and inject funds into the industry recently.
How has it been as the MD of Ibom Power Plant?
I thank Governor Udom Emmanuel, my boss for this wonderful opportunity to serve Akwa Ibom people as the managing director of Ibom Power Plant. Similarly, I appreciate my first appointment by the former governor, now Senator Godswill Akpabio. More than that, I believe It is something God has prepared me to do. When I came back from the US where I have been for more than 20 years, and I was saddled with the responsibility of taking a company that was almost comatose and making it work, I give God the glory. When I look at the company now from the past, it gives me joy that in one year we have been in office, people can see the difference.
What are the Challenges, if any?
I wish there were no bad eggs, dead woods in the system. However, one has to manage both the asset and liability. It is sad that people are always negative in this part of the world. The governor is working very hard and we are keying into his vision, but the challenge is how to get our people to think and act right, instead of trying to pull each other down. But with God on our side, (Emmanuel) Akwa Abasi Ibom State, would consolidate and continue to move forward towards sustainable development under the superior performer, our dear governor, Udom Emmanuel.
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