Okowa Begins Privatization Process For Failed Oghara IPP

Mr. David Edevbie conducting Access Bank Officials round the IPP project in Oghara on Monday

Governor Ifeanyi Okowa of Delta state appears to have started the privatization process for the multi-million naira failed Independent Power Project, IPP, located in Oghara.

This followed the inspection of the project by Chairman of the State Privatization Committee, and Commissioner for Finance, Mr. David Edevbie who also midwifed the recent controversial partial sale of Delta Line Transport Services Limited.

BigPen Online learnt that Edevbie led Access Bank officials who may likely invest on the project on the facility tour of the failed project which had gulped over N53billion naira, excluding payment of land acquisition, insurance among others.

Recall that Governor Okowa had earlier said the state government cannot continue with the project over paucity to funds to complete and sustain it. The governor said the project which would take additional N20billion to come on stream would need a private investor if it must be realized.

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It was learnt that Access Bank officials alongside the Commissioner on Monday inspected the project in preparation for the possible privatization deal.

One of our correspondents reports that officials visited the site where some of the equipment, such as turbine Gas plant, Generator set among other equipment for the project were kept.

The visit was also to ascertain the level of work done and for the officials to have insight of the project.

Edevbie however explained that Governor Okowa decided to set up the committee to look into the project and come up with a workable means of executing it.

He said that they were at the project site for the officials of Access Bank Plc to have insight of the project, whether the State government may partner/borrow money to execute it or not.

The commissioner also stated that the committee would either advise the State government to embark on borrowing or go for Public-Private Partnership to ensure that the project was completed.

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Mr. Edevbie however said he was not sure if government insured the equipment, positing that the present administration would investigate the sum paid to contractors so far, with the view of either revoking the contract or order contractor back to site.

Contractors handling the controversial project had been paid over N19billlion but value of work done so far is pegged at N12billion, according to July 2014, Exco report which had advised government to suspend further payments for the project.

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