… Kaduna Electric records 46% rise in market remittance in six months, reduces ATC&C losses by 7%
Oredola Adeola
Chief Adebayo Adelabu, the Minister of Power, has expressed dissatisfaction with the current state of the abandoned 215-megawatt Kudenden power generation plant in Kaduna State.
He has therefore issued a directive to the contractor to ensure the project completion by December 2024, or at the latest, by the first quarter of 2025.
The Minister made this announcement during his working visit to Kaduna State, which included a courtesy call on the Kaduna Electricity Distribution Company (KEDCO) and an inspection tour of the Kudenda project.
WHAT YOU NEED TO KNOW ABOUT 215MW KUDENDEN POWER PLANT
Advisors Reports’ check showed that the Kaduna power plant project at Kudenda was awarded by the Federal Government in November 2009 to General Electric and Rockson Engineering.
The project, intended as a dual thermal plant using natural gas and diesel fuel, was stalled due to legal disputes between the contractors.
Originally scheduled for completion on December 31, 2013, the deadline was first shifted to June 2014, then extended to 2017, but it failed to meet these deadlines, consuming over N100 billion.
Located around the Kudenda industrial area, off Nnamdi Azikiwe Expressway in Kaduna, the power plant was designed by the Federal Ministry of Power to use eight installed turbine units to enhance power supply in the industrial area.
Its eventual operation is expected to benefit 12 textile factories in the Kakuri industrial area.
Additional challenges have also hindered the project, including poor road conditions that complicated the transport of imported equipment from the Onne port to the site.
Advisors Reports further gathered that initially, the project was sited at the Kudenda industrial area instead of Kakuri because the Nigerian National Petroleum Corporation (NNPC) was expected to route a gas pipeline, tagged the Abuja-Kaduna-Kano (AKK) pipeline, near the site.
According to him, “Between 2018 and 2023 when we came in, the President Bola Tinubu’s administration resolved these issues, and the contractors are back on site.
“That is why I visited the place to discuss the plans for completion with the contractor and also to discuss with the consultants and the intervention required from the ministry to accelerate the completion of the project by December 2024 or latest first quarter of 2025 in case of unforeseen delay,” Chief Adelabu stated.
The Minister therefore assured that the project is going to be completed and an additional 215 megawatts of power would be added to the national grid,” Adelabu stated.
Earlier, Dr. Umar Hashidu, Managing Director/CEO of Kaduna Electric, informed the Minister of the company’s leap in its market remittance from 13% to 46% in the last six months, since it took over the affairs of the DisCo.
He disclosed that the Interim Management under his leadership has also reduced the ATC&C Losses of the Company by 7% within the period under review, while at the same time improving the monthly revenue and Regulatory Compliance rating of the Company significantly.
The Chief Executive Officer of Kaduna Electric who disclosed that the Company is being repositioned to improve both the operational efficiency and commercial performance, said the biggest challenges facing the Company now are vandalism and energy theft.
He acknowledged what he called “the wonderful support and cooperation”, the Management has been receiving from both the Board and other stakeholders.
Chief Adebayo Adelabu, in his response, expressed satisfaction with the performance of the Interim Management, stating, “The Ministry is happy with your performance so far; we are honestly not disappointed.”
He highlighted the crucial role of the Distribution Companies (DISCOs) in the power sector, saying, “The DISCOs are the foot soldiers of the sector; you must understand that the efforts of all the players in the sector will come to nothing if you fail to deliver a sustainable power supply to the Nigerian populace.”
However, the Power Minister also issued a stern warning to the management of Kaduna Electricity Distribution Company (KAEDCO) for not being transparent about the challenges faced by the company and the broader power distribution issues within its franchise area.
He emphasized that the company’s payment of only nine per cent of its debts was unacceptable. “If the DISCOs were paying 75 to 80 per cent of their debts, I would be at ease because the 10 to 20 per cent shortfalls could be managed,” Adelabu said.
The Minister also condemned the increasing cases of vandalism of power supply infrastructure and energy theft across the country. He warned that the Ministry of Power is collaborating with the Office of the National Security Adviser, the Ministry of Interior, and all security agencies to address this menace.
He highlighted that the deliberate destruction of power assets, including transmission systems, high-voltage cables, and transformers, has become widespread, particularly in the northern areas, affecting the stability of electricity distribution.
The Minister called on Northern States Governors to address the security threats to power infrastructure.
