Debts of N26.4bn owed by NBET, others killing Olorunsogo power station’s 335MW capacity
A clear reason has emerged on why Olorunsogo Power Plant in Ogun State has remained technically moribund since inception.
Managing Director/Chief Executive Officer of Pacific Energy Company Ltd, operator of the plant, Monsuru Afinni, in an interview revealed that a debt of N26.4 billion owed it by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO) is hobbling the group’s productivity.
Explaining that the amount is among other technical challenges that have weakened the productivity of the 335-megawatt-capacity plant from effectively generating power and meeting its targets in the country.
He also relayed the same reason during an inspection visit by the Minister of Power, Works and Housing, Babatunde Raji Fashola, at the weekend, to the Phase 1 of the power station.
Afinni said the Olorunsogo power station is currently experiencing delayed revenue remittance to the tune of N26.4 billion, thus leading to serious indebtedness. He noted that while NBET owes N23.9 billion, the firm was also being owed N2.5 billion by MO.
Apart from towering debts, the Managing Director disclosed that inadequate gas supply, grid instability and deplorable state of road linking the plant had created more hiccups for the power plant.