Forex Scarcity, N20billion Debt Threaten Kainji, Jebba Operations

Elektrownia Wodna Kainji
Unpaid invoices and acute foreign exchange scarcity are affecting Mainstream Energy Solutions Limited, MESL,  are affecting the company’s ability to effectively sustain its operation, the chairman of the company, retired Col. Sani Bello, has said.
Mainstream Energy Solutions Limited, MESL, is the concessionaire of the Kainji and Jebba Hydro plants, supplying electricity.
Speaking yesterday at the inauguration of the seven-member Charity Foundation of the company in Abuja, the MESL Boss, also said the difficulties associated with obtaining forex to import critical spare parts, had reduced their ability to increase the generation capacity of the company.

The country now heavily relies on the hydro power stations with the drop in electricity generation from the gas-powered stations mostly in the Niger Delta region. At the moment the two hydro plants are generating about 900mw, close to 40 percent of the total power generation of the country.

Kainji and Jebba have installed capacities of 760mw and 578.4 mw respectively. The two power plants were handed over to MESL on November 1, 2013 as part of the federal government’s power privatisation programme.

Col Bello said beside the debt, there was a delay in payment of the power generated since March 2016 from the regulatory authorities and the Distribution companies.

“The CBN interventions to the sector could not have come at a better period without which, our plants would have been forced to shut down operations,” the chairman said.

He urged the ministry of power, Bureau of Public Enterprises, the Nigerian Bulk Electricity Trader and the Nigeria Electricity Regulatory Commission to ensure that the debt burden borne by the gencos did not run them out of business.

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