Page 11 - AsianOil Week 29 2020

AfrElec NEWS IN BRIEF AfrElec

POLICY government. and environmental regulations, Bloomberg
“This is why we are here today, to see what reported.
No plan to reverse we have been told by the Nigeria Electricity With the work delayed, Eskom shut the
Liability Management Company (NELMCO),” 1,600MW facility in April, saying the dam
privatisation of Nigerian he said. where it stores ash from burning coal was at
He said NELMCO told the committee
risk of bursting.
power sector, says Senate that they handed over some assets to AEDC supplied to South Africa by between
Eskom this month slashed the electricity
when the company was incorporated and the
Gabriel Suswan, the Chairman of the Nigerian committee needed to be sure it was true. 1,000MW and 2,000MW for a week. Power
Senate Committee on Power says the senate “ So here is the assets of government and it cuts, known locally as load-shedding, have
has no plans to reverse the privatisation of the is being occupied by AEDC which is a private hindered economic growth since 2008.
power sector. company and we are wondering why they are Eskom, which has debt of about 454bn
Suswan made this known in Abuja during occupying government property, rand, is mired in corruption allegations,
the committee’s oversight visit to some “The managing director has told us they many of them related to contracts for the
government structures being occupied by are supposed to be paying rent but because maintenance and construction of power
the Abuja Electricity Distribution Company the property has been advertised for sale, they plants. Numerous allegations have been aired
(AEDC). also have the right of first refusal. at a state commission of inquiry.
According to him, the senate is not pushing “We are satisfied that the building is here The first contract to build an ash-handling
for the reversal of privatisation of the sector as and AEDC has accepted that the building plant and dam at the site was initially awarded
that will distal the economy and create issues belongs to government, and that they are to Rula Bulk Materials Handling in 2016. But
of trust in the international community. tenants here until when they are able to that raised the conflict of interest issue.
“We encourage the government to procure it if they win the bid,” he said. Danie Odendaal, an Eskom general
continue with the privatisation as far as the manager, was found in an internal probe to
power sector is concerned have signed off on a technical review used in
“There are teething problems and those the tender won by Rula, where his brother
problems will not be reason for the review of ESKOM Roelf is a shareholder and managing director.
the privatisation that was done and people “Danie Odendaal remains suspended and
have bought. Eskom plant closure will be going through a disciplinary process,”
“All we can do is to try to make sure there Eskom said. “The details are matters between
is enhanced performance in the sector to worsens power cuts amid employer and employee.”
create efficiency but unfortunately, the process The delay was worsened after Rula said the
itself started on a faulty note. nepotism concern drawings for the project were its intellectual
“Some of the parameters used were a property, forcing the new contractor, Wilson-
bit faulty so the sector has been faced with Eskom’s own mishandling of a repair contract Bayly Holmes-Ovcon Ltd., to redo the design.
problems that ordinarily would have been led to the closure of its Camden power plant, Eskom also said Rula breached the water-use
avoidable. a move that worsened power cuts by South license by building a site office on a wetland
“So what we are trying to do in the Africa’s near-monopoly electricity provider, that had to be removed.
National Assembly (NASS) is to identify the company said. Roelf Odendaal rejected Eskom’s
the core challenges so that we can help the In its first detailed explanation of the explanations, saying his brother played no
executive in addressing them,” he said. shutdown, Eskom said the initial ZAR635mn role. The delays were “caused by a lack of
Suswan said that the duty of NASS was to rand ($38mn) contract expired in 2018 decision making” by Eskom, he said.
oversight the activities of the other arms of amid questions about conflicts of interest

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