N4bn compensation dispute threatens Ikot Abasi power project

Power

•NDPHC seeks Eno’s intervention

 

 

By Adewale Sanyaolu

Nearly 20 years after the Federal Government awarded the contract for the 330kV Ikot Abasi Transmission Line, the Niger Delta Power Holding Company Limited (NDPHC) has turned to the Akwa Ibom State Government to break a N4 billion compensation deadlock threatening the completion of the strategic power project.

The transmission project, awarded in 2006 under the National Integrated Power Projects (NIPP), has remained stalled primarily over unresolved community and wayleave compensation issues.

But, to ensure the completion of the project, NDPHC Managing Director/Chief Executive Officer, Jennifer Adighije, is now seeking the intervention of Akwa Ibom State Governor, Pastor Umo Eno, to clear the outstanding issues and enable the contractor, Anit Energy, to return to site.

Adighije made the appeal during a courtesy visit to the Governor in Uyo, Akwa Ibom State.

She disclosed that the latest valuation of the outstanding wayleave obligations was slightly below N4 billion.

The NDPHC boss said the prolonged delay was particularly concerning because the contractor had reportedly completed about 90 per cent of the engineering, procurement and construction procurement for the project.

She added that substantial project materials, including conductors and tower members worth millions of dollars, had already been deployed along the project corridor between Adiasim and Ikot Ekpene, but were still lying across communities as the impasse persists.

“We are therefore pleading for your kind intervention as a shareholder and board member of the company,” Adighije told the governor.

According to her, resolving the outstanding community issues would allow the contractor to remobilise to site and bring the long-delayed project to completion.

NDPHC is now targeting May 29, 2027, for commissioning of the transmission line, subject to the successful resolution of the outstanding compensation and community challenges.

Adighije said NDPHC was keen to support the state’s development ambitions through its role as a major interventionist agency in Nigeria’s electricity sector.

“We want to be part of your ARISE Agenda,” she said, referring to the governor’s development programme.

She also welcomed the establishment of the Akwa Ibom State Electricity Regulatory Commission, saying NDPHC had commenced discussions with the commission on the development of appropriate electricity-market frameworks for the state.

According to her, officials of the commission had visited NDPHC and requested information on the company’s projects in Akwa Ibom, while a joint working group was being established to examine how the assets could be better utilised and electricity access extended to underserved communities.

Also speaking, NDPHC Executive Director, Strategy and Commercial, Mr. Patrick Obahiagbon, commended the Governor’s administration for its development initiatives across the state.

Responding, Governor Eno welcomed the NDPHC initiative and pledged to take the Ikot Abasi project before the State Executive Council for consideration. The governor said the state government would examine the outstanding issues and determine how it could intervene to facilitate the completion of the project.

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