Federal Government Hands Over Transmission Company of Nigeria (TCN) To MANITOBA
Minister of Power, Prof. Chinedu Nebo
* Inaugurates constituted TCN supervisory board Tuesday
The Federal Government did what has been considered extremely necessary
in its ongoing power reform programme when it last week granted
Canadian firm, Manitoba Hydro International (MHI) absolute control of
the Transmission Company of Nigeria (TCN).
THISDAY gathered Monday in Abuja from sources at the National Council
on Privatisation (NCP) that the Minister of Power, Prof. Chinedu Nebo,
has finally signed off the controversial “schedule of delegated
authority” for MHI to immediately commence operations at TCN.
Nebo accordingly signed and handed MHI the “schedule of delegated authority” last Friday in Abuja.
The “schedule of delegated authority” grants Manitoba authority over
operations of TCN in relations to Market Operations, System Operations,
Transmission Service Provider, National Control Centre and Information
Technology.
THISDAY also gathered that the newly constituted board for TCN will be
inaugurated by Nebo Tuesday in Abuja, perhaps, bringing to a close what
has been considered an eventful path to Manitoba’s assumption of
duties
at TCN.
Government has retained ownership of TCN which is part of successor
companies created off the defunct Power Holding Company of Nigeria
(PHCN) in the ongoing power sector liberalisation exercise.
It contracted Manitoba in July 2012 to manage operations of TCN at a
contract sum of $23.7 million for three years; the contract which passed
through a competitive bidding process entails Manitoba repositioning
TCN to effectively discharge its responsibilities in the evolving
Nigerian Electricity Supply Industry (NESI).
However, the contract was subjected to various degrees of controversies
leading to its purported cancellation and subsequent revalidation late
2012 by President Goodluck Jonathan whose actions were largely informed
by an advice from the Bureau of Public Procurement (BPP).
The BPP had charged the Bureau of Public Enterprises (BPE) of
mis-procuring the management contract; an accusation the BPE vehemently
denied citing extant laws that support its processes and actions.
Apart from the BPP/BPE disagreement, the management contract was also
subjected to some forms of manipulations following alleged attempts by
officials of the ministry of power to take-off certain aspects of it
from Manitoba.
It was largely understood that the ministry had attempted to reserve
the market operations duties from the contract; this among others were
partly responsible for the delay in signing off the “schedule of
delegated authority” for Manitoba as the ministry allegedly tried to
amend the contract. The market operations department is technically
responsible for financial settlements in the value-chain.
Nebo who confirmed the recent development to THISDAY said the contract was delivered to Manitoba intact.
He noted that no aspect of it was taken off and that a board for the
TCN will be inaugurated immediately to complement the job of Manitoba at
TCN.
“Yes, we have handed over the complete running of TCN to Manitoba; I
have signed and handed over the “schedule of delegated authority” to
Manitoba but again, we are also going to inaugurate the board of TCN
tomorrow (Tuesday) to compliment the work of Manitoba,” Nebo said over
the telephone.
Also, a phone call to the Chief Executive Officer (CEO) of Manitoba,
Mr. Don Priestman to confirm the development was not so successful but
THISDAY however learnt that Priestman has been in a meeting with staff
of TCN over the new development.
In constituting the supervisory board of TCN, the government opted for
the former Chairman of Revenue Mobilisation and Fiscal Allocation
Commission (RMFAC), Mr. Hamman Tukur as chairman, while former CEO of
Skye Bank, Mr. Akinsola Akinfemiwa will act in the capacity of the
Vice-Chairman.
Other members of the board include the Director of Human Resources
Management at BPE, a representative of the Coordinating Minister for the
Economy and Minister of Finance, Director of Power at the Ministry of
Power and a commissioner from the Nigerian Electricity Regulatory
Commission (NERC).
The TCN board will also have the representative of the Manufacturers
Association of Nigeria (MAN), successor PHCN generation companies
(GENCOS) and distribution companies (DISCOS) as members.
