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FCDA, firm row over 500Mw power project

FCDA, firm row over 500Mw power project

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The plan by Jehata Nigeria Limited to build a 500 megawatts (Mw)power generation  plant in Abuja may hit the rock, following objection by  the Federal Council Development Authority(FCDA).

The firm (owners of Abuja Power Station) was accused of not  following     due diligence practice in its approach to the issue of building  the power plant by the FCDA.

In a letter dated March 19 and made available to The Nation, Jehata Nigeria Chief Executive Officer/Managing Director, Jameel Jammal, accused the management of FCDA of delaying the siting of the plant.

According to him, FCDA has refused to provide land for the project, seven and half years after the idea was mooted.

He said the allegation of non-compliance with due process by FCDA was aimed at discouraging the firm from executing the project.

Jehata Nigeria, Jammal noted,  wrote the FCDA to express its readiness to build the plant, adding that the letter was not treated.

The letter read: “We, unequivocally, state that we do not understand what you mean by conducting ‘due diligence’ in our company. Recall that in the last seven years, we have been struggling with your office. The main issue is about FCDA allocating land to us (which we have opted to pay for) for the purpose of building a power plant and in those traumatic years. We, at Jehata Nigeria Limited, have given every conceivable piece of information to help your due diligence.”

He added that his firm had earlier submitted some documents to FCDA as a proof of due diligence. The documents, he said, include Certificate of Incorporation of Jehata Nigeria Limited, the passport of its Managing Director, Jameel Jammal, his birth certificate, his firm’s tax clearance, letters of recommendation from the Federal Ministry of Power, and the Transmission Company of Nigeria (TCN), site verification by Federal Ministry of Environment and letter from Gas Aggregation Company of Nigeria (GACN).

Others, he said, are Abuja Power Station Executive Summary and Drawings/Site plans.

FCDA, however, countered Jehata Nigeria. A letter signed by the FCDA’s Director, Engineering Services, Shehu Hadi Ahmad, stated that the inability of Jehata Nigeria to follow due process slowed the building of the plant.

He added that the delay in the construction was caused by Jehata Nigeria’s failure to address some administrative procedures. “I wish to express our regrets for the inadvertent delay in the process of your request, which arose due to some administrative procedures necessary to be fulfilled when dealing with such issue of eminent significance,” he said.

FCDA, Ahmed said, was aware of the passion demonstrated by the firm to build a plant that would generate and inject 500Mw to the national grid and also boost supply of electricity to territory.

The power sector privatisation in 2013 resulted in the splitting of the assets of the defunct Power Holding Company of Nigeria (PHCN) into the six power generation companies (GenCos) and 11 power distribution companies (DisCos). The development culminated in the application of embedded power plants by the DisCos to improve power supply to some areas.

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