Reps panel summons TCN boss over controversial $33 million Azura power deal

The Home of Representatives Committee on Finance has summoned the Managing Director of the Transmission Company of Nigeria (TCN), Sule Abdulaziz, over the controversial Azura energy plant settlement.

The committee issued the summon on Monday on the ongoing investigation into the proposed gross sales of energy belongings below the Nationwide Built-in Energy Challenge (NIPP).

Though the Government Director, Transmission Service Supplier, Victor Adewumi, and Director Market Operator, Edmond Eje, appeared earlier than the committee, it, nonetheless, stated it was not glad with the reasons they gave on the matter.

Consequently, Mr Abdulaziz was requested to seem on Tuesday to reply questions on the Pull Name Possibility Settlement (PCOA).

Underneath the PCOA deal, Nigeria is obligated to pay between $30 million and $33 million month-to-month to Azura for energy generated, whether or not TCN transmits it or not by way of the nationwide grid.

Final week, the Committee issued a question on the deal when the Nigeria Bulk Electrical energy Buying and selling Firm (NBET) appeared earlier than it.

Talking on optimisation of the plant, Mr Eje stated most instances, Azura is unable to fulfill the goal of producing 450MW as supplied within the deal, including that there’s a justification for not doing that.

He didn’t, nonetheless, state the rationale for not optimising the capability of the plant regardless of the settlement.

The Chairman of the Committee, James Faleke (APC, Lagos), famous that different energy crops like Egbin with producing capability of 1,320MW and Transcorp Energy Plant with producing capability of 920MW shouldn’t have PCOA.

He then sought to know what makes Azura particular to warrant the settlement by the federal authorities.

“Egbin energy station is the biggest with 1,320 megawatts. It’s personal. We didn’t signal take-or-pay with them. That is the place I’m going. If we have now Egbin energy station that’s producing the very best into the nationwide grid – 1,320, and we even have Transcorp with about 650 megawatts and we didn’t signal take-or-pay with Transcorp, and I’m positive we have now others, what we try to carry out is that what’s so particular about Azura? Not solely that it’s particular, simply two or three folks sat down and dedicated Nigerians to it. We’ll get there.

“This doc you gave us, there isn’t any month that they’ve met 450MW,” Mr Faleke stated.

He added “If I perceive your earlier assertion, are you able to say that they haven’t produced as much as 450 that was signed they usually have justification for not producing as much as that? In that case, would you say as a Nigerian that they’ve violated the settlement we signed?” Mr Faleke requested.

In response, the operator stated solely NBET might reply questions on the settlement.

You’re complicated us, lawmakers lament

The members of the committee have been left confused on the month-to-month producing capability of the facility plant as Messrs Adewumi and Eje failed to obviously clarify the each day producing capability of the facility plant to them.

Tolulope Shapide (APC, Oyo) stated the representatives of TCN didn’t make clear a number of the points, however as a substitute left the members confused.

“The consultant of the chief govt, I’ll need to put it to you that this doc, you might be complicated the Home. If it’s your doc and we’re arguing on it, whether or not it’s megawatts or it’s in kilowatts, and settlement has been signed on behalf of Nigerians in megawatts,” she stated.

READ ALSO: Reps panel queries $30 million monthly Azura power deal

One other member, John Dyegh (PDP, Benue), additionally admitted that the doc submitted by TCN had left members confused. He, subsequently, moved a movement for the Home to get consultants to assist the committee.

“I agree that we’re extra confused. However greater than that’s that between this Azuragate and the gas ‘subsidygate’, Nigeria is bleeding badly.

“I need to counsel that we tender this…we submit this to a advisor, who will do a correct evaluation and get again to us. There isn’t any level arguing and arguing as a result of they’re getting us extra confused,” Mr Dyegh stated.

In his closing remarks, Mr Faleke stated the members ought to reserve all questions relating to the facility plant for Tuesday.

“So, all of the questions that I’ve for TCN, I’ve to order them till your MD is right here. There are different important questions that this committee will need to ask. When the MD is seated, we are going to ask. No matter place we have now discovered ourselves, we’re simply opportune amongst 200 million folks,” Mr Faleke stated.