The federal government has lost about N18.8 billion equivalent to $52 million due to the failed management of electricity transmission lines’ fibre optics concession deal by private firms since 2006. A document made available to Daily Trust this week indicates that the loss accumulated due to scores of transmission grid system collapse said to be caused by the non-enhancement of transmission lines by the operators who ran the fibre optics for telecommunication business.

The transmission lines owned by the federal government transmit electricity from the Generation Companies (GenCos) to the Distribution Companies (DisCos) for delivery to the consumers. The lines consist of 8,336 kilometres of 330 kilovolt (kV) transmission lines, 8,071km of 132kV lines and 191 substations of 330/132/33kV capacity. They have at least 8,957km of fibre optic cable infrastructure that was designed to facilitate the Supervisory Control and Data Acquisition (SCADA), and Electricity Management System (EMS) network.

From records, current SCADA system only reads 40 percent of the national grid. Contracts for a full scale SCADA system were awarded to Siemens but failed three times. If the sector has full SCADA, it could help transmit telecommunication signals for seamless operation of the electricity network. This missing ling has added to the attendant and frequent shocks to the power grid.

How the concession deal began The defunct National Electric Power Authority (NEPA) in 2006 signed two concession agreements with Phase3 Telecoms Limited, and Alheri Engineering Company Limited. The concessions were then transferred to the Transmission Company of Nigeria (TCN) after the Electric Power Sector Reform Act (2005) led to the unbundling of the power sector. The Concessionaires were to improve on the fibre optics in 15 years and then transfer it to TCN. They were to pay $40 million (N14.44bn) each as concession fee, along with 2.5 percent of shelter and royalty from the gross revenue they would earn using the infrastructure to service telecoms customers. It was noted however that Phase3 and Alheri had only paid $2m and $3.5m respectively.

“The Concessionaires have also failed to build most of the enhancements fibre optic lines their agreements required them to build, operate and transfer to TCN. “Their inability to build additional lines has resulted to a whopping $52m loss in operational revenue and has been largely responsible for some of the national electricity grid collapse that the country has been witness,” the brief document read. It was learnt that the Infrastructure Concession and Regulatory Commission (ICRC) intervened in 2014 for Phase3 to pay its $36.8m balance, and for Alheri to pay N38m balance. They were both to pay N40m shelter fee and 2.5% of the gross revenue. But that process failed by 2016. By August 2017, TCN said it terminated the contract “in the interest of the Nigerian electricity development, expansion and network monitoring and control to avert system collapses and grid disturbances.”

TCN noted that “it has recorded less vandalism on its transmission line since termination of the concession agreement as compare to our previous records.” The transmission company said since the termination, it has invested $25m in the fibre optics enhancement on critical lines which the concessionaire failed to provide. While TCN hopes to reach 20,000 megawatts (MW) by 2025 from the present 8,100MW wheeling capacity, it alleged that the “this Concession Agreement is a move that is designed to perpetually inhibit the planned National transmission development masterplan and to frustrate the national electricity expansion programme which President Muhammadu Buhari is striving to achieve.” The document shows, TCN has briefed the Presidency, the Ministry of Justice and Attorney General of the Federation (AGF), the Department of State Security Services (DSS) and the Economic and Financial Crimes Commission (EFCC) on the imminent danger and its adverse impact on the electricity industry.

Read more: https://www.dailytrust.com.ng/how-fg-lost-n18-8bn-to-fibre-optics-deal-in-13-years.html

Household Chef urgently needed.

Location: Omole Phase 2.

Interested candidates should contact the numbers on my signature.
Thank you.

Okay

FG and bad businesses are like 7 and 8.

Some people will come here to blame Buhari for this again.

Who should I blame this morning please?

I blame the E-diot below me.

There was a country.
We have been so unlucky with bad leaders in this part of the world.

We thank God that a New Sheriff is in town.
We are gradually taking back our stolen money from these evil politicians that raped and looted our national treasury.

Nigeria will be great again in our lifetime,
And if not our lifetime, we are laying a good future for our kids at this time.

For those that always pray and wish for bad news concerning Nigeria, bad things will not be far from their doorsteps.
No be curse, na fact!
We know them by their quotes and mentions.

God bless Nigeria.
We Rise!

I don't want to know how the business transaction occurred..All I know is that money was embezzled..

May God help us in this country.

Everybody is out to scan Nigeria out of her hard earn oyel money.

Seems the Federal gov is all about losses and no benefits.

What Federal Gov could do.

1. Create a no nonsense Contracts Quality control Agency which will supervise all Quality of Government contracts by contractor from award issuance to completion of work. This will also create jobs. Part of the 3 million jobs President Buhari is looking for

Eg. If a contract to build a road, Lagos to Bauchi is signed, 4 (1 male , 1 female at all times field and Contractor office) Federal Government Contracts Quality control officers (must be assigned to that contract to supervise or oversee Federal Governments terms of reference and Quality standards are being carried out with daily activity reports for that contract to the Federal Gov.

So, if a contractor is not performing, or abandons site, Federal Government Contracts Quality Control officers can quickly raise alarm.

This above should reduce or eliminate Federal Government losses from Concessions and Contracts to Firms.

**NB: above was just a thought.

gud day, pls i seriously need a job, i am a graduate of accounting (hnd) 07037799108

[s]

post=82572876:
There was a country.
We have been so unlucky with bad leaders in this part of the world.

We thank God that a New Sheriff is in town.
We are gradually taking back our stolen money from these evil politicians that raped and looted our national treasury.

Nigeria will be great again in our lifetime,
And if not our lifetime, we are laying a good future for our kids at this time.

For those that always pray and wish for bad news concerning Nigeria, bad things will not be far from their doorsteps.
No be curse, na fact!
We know them by their quotes and mentions.

God bless Nigeria.
We Rise!

[/s]

A lot of jargons being used to mask the truth and facts of the case. Whoever wrote this article should go back to school.

Not again.

was the money paid and these company failed or to delivered, or they were suppose to use their money and recover it via their service. anyway nice one from the government

Nawaa o, na soso lost lost una dey lost

Well please visit our new website https://lifestyles.ng

kode12:
A lot of jargons being used to mask the truth and facts of the case. Whoever wrote this article should go back to school.

Alheri is a Dangote owned company hence the obfuscation.

ceeroh:
[s]Household Chef urgently needed.

Location: Omole Phase 2.

Interested candidates should contact the numbers on my signature.
Thank you.[/s]

You lack basic etiquette and common sense. That is why you posted this rubbish here.

Make una free to express im opinion in peace na... All this beef beef wey una dey beef am ehn...

[s]

post=82572876:
There was a country.
We have been so unlucky with bad leaders in this part of the world.

We thank God that a New Sheriff is in town.
We are gradually taking back our stolen money from these evil politicians that raped and looted our national treasury.

Nigeria will be great again in our lifetime,
And if not our lifetime, we are laying a good future for our kids at this time.

For those that always pray and wish for bad news concerning Nigeria, bad things will not be far from their doorsteps.
No be curse, na fact!
We know them by their quotes and mentions.

God bless Nigeria.
We Rise!

[/s]

Lack of maintenance culture.

passyhansome:
SELL THE COUNTRY

Who wan buy am?

H

zela:
I don't want to know how the business transaction occurred..All I know is that money was embezzled..

I knew that will happen from the start of 2006 when the drum of fibre optic roll out in Naija.

Some people take their chance.

Now, it glorious to hear that money has been embezzled.

IamaNigerianGuy:


Alheri is a Dangote owned company hence the obfuscation.

Spot on.