ransmission Company of Nigeria

• Electricity transmission rises to new peak of 4,545MW

Ejiofor Alike in Lagos and Chineme Okafor in Abuja 

The federal government has extended the management contract between the Transmission Company of Nigeria (TCN) and Manitoba Hydro International Limited (MHI) of Canada by one year.


The extension of the contract followed a three-year management contract signed in 2012 under which MHI was meant to manage TCN’s transmission grid, system and market operations, as well as train TCN personnel.


The three-year contract, which was signed by TCN, MHI and the Bureau of Public Enterprises (BPE), and which would expire on July 31, 2015, has now been extended to July 31, 2016.


The renewal of the contract was done in defiance of recent threats by members of the National Union of Electricity Employees (NUEE) to legally resist the renewal of MHI’s management contract with TCN.


NUEE had recently listed sundry reasons why the government should not renew the contract. The union through its Secretary, Joe Ajaero, stated that it would resist the contract renewal, adding that MHI had failed in all the terms of engagement given to it by the government.


Ajaero alleged in a statement that MHI had failed to improve voice communications that are critical for safety and reliability control, effectively administer or enforce the grid code or market rules as well as to improve the emergency preparedness of TCN.


Ajaero also stated that MHI had not introduced best practice, a company business continuity plan or emergency response plan in the TCN, adding that its failure to restore system reliability in the sector remained a huge minus against the management contractor.


But regardless of NUEE’s stance, the General Manager, Public Affairs of TCN, Seun Olagunju, disclosed in Abuja yesterday that government had signed a one-year extension of its current management contract with MHI for TCN.


He further stated that MHI would continue to assume responsibility for the management and control of TCN’s entire operations, working alongside their Nigerian counterparts to transform the company into a technically and financially efficient, stable, and sustainable entity.


The statement added that MHI, working together with TCN, have achieved a wheeling capacity of 5,300 MW and reduced system losses from over 12 per cent to approximately eight per cent.


“In addition, system collapses have reduced significantly, from 22 in 2013 to 9 in 2014, while the duration of collapses has reduced from more than 2.5 hours to approximately 30 minutes.


“The fourth year of the contract will focus on further increasing TCN’s capacity to transmit power in the grid, in anticipation of rising levels of generation in the country.


“Additionally, MHI will facilitate the unbundling of TCN into two new organisations – the Transmission Service Provider and the Independent System Operator – while simultaneously building the capacity of local management to take over the leadership of these organisations at the end of its contract,” Olagunju explained.


Commenting on the extension, the Chairman of TCN’s Supervisory Board, Mr. Ibrahim Waziri, expressed satisfaction with MHI’s performance, noting that MHI would continue to play a role in TCN’s transformation and development.


“Working together”, he said, “We expect to build on our achievements over the past three years.”
Even though the statement did not reveal the total financial cost of the one-year contract, the initial three-year management contract MHI executed with the government in 2012 was negotiated for a fee of $23 million.


Shortly before the one-year extension, a former Minister of Power, Prof. Bart Nnaji, had told THISDAY that the federal government should opt for a short extension of the contract or concession, and cautioned that TCN should not be allowed to revert to government management.


Nnaji also stated that officials of the government had interfered with the management of TCN in the last three years.
“The TCN should never go back to government management. Government ownership, yes but government management, no; it is not a good idea.


“Private sector proper management, may be, but concessions of segments of TCN, yes. I believe that the private sector management was never allowed to work. That is the problem; that is part of the problem.


“So the people, who were brought to manage had to endure interferences from the government-appointed officers. That is an issue. What should happen is that, perhaps, a short time extension or a concession but not going back to government management,” Nnaji explained.


Meanwhile, in a separate press statement, Olagunju also stated that TCN had achieved a new electricity transmission peak of 4,545MW through its national network.
She said the new transmission peak was reached last Monday against the previous power transmission peak of 4,517MW, which was attained in December 2012.

http://www.thisdaylive.com/articles/fg-ignores-labour-s-threat-extends-manitoba-s-contract-with-tcn/214646/