Transcorp merges power subsidiaries, announces new identity
Shiroro to upgrade generating capacity
TRANSNATIONAL Corporation of Nigeria Plc (Transcorp), on Monday, announced the successful merger of its two power subsidiaries -Transcorp Ughelli Power Ltd and Ughelli Power Plc. The merged companies are now a single entity called Transcorp Power Limited.
The merger, according to a statement by Transcorp, was designed to harmonise the management and operations of its power business for greater efficiency.
Transcorp’s chairman, Tony Elumelu explained that while the structure has changed, “our objectives have not. As one of the leading power generating companies in Nigeria, our focus remains on aggressively increasing our output and expanding our capacity to generate at least 25 per cent of Nigeria’s power.
“Greater operational efficiency will undoubtedly lead to higher output in terms of power generation and increased shareholder value.”
The Chief Executive Officer of the new company, Ade Fadeyibi said: “We have increased power generation by more than 525 per cent in the two years since we acquired Ughelli power plant, which makes ours the fastest growing among privatised power assets in the country. We are aggressively pursuing our generation recovery capacity programme and are on course to deliver 760MW by December, 2015.
“At Transcorp Power, we are strengthening our part of the power value chain and in doing so, we are helping to light up Nigeria.”
Ughelli power plant, the company’s power generating asset, is the nation’s largest fossil-fuel generating plant.
Meanwhile, in its efforts to boost power supply in the country, the management of Shiroro Hydro Electric Power Station has unfolded plans to construct a 300megawatts (mw) photo voltaic solar power plant on the existing plant premises, which was concessioned to the North- South Power Company (NSP) Limited on November 1, 2013.
The development was disclosed by the plant’s Chief Technical Officer, Roland Lwiindi has disclosed, when the post privatisation monitoring team of the Bureau of Public Enterprises (BPE), visited the power station in Shiroro, Niger State recently.
Lwiindi said that upon approval from the necessary authorities, the first phase of the project would come on stream in 2017 and it would be the first of its kind in Africa.
According to him, when completed, the plant would add 300 mw of electricity to the existing 600 mw adding that the plant has currently been generating 50 per cent of its installed capacity.
He noted that as a hydro powered plant, its generating capacity declines at dry seasons, but that the proposed photo voltic solar facility would shore up its power generation during the off peak seasons.
For the current dry season, Lwiindi said the plant would rely on the sun to make up for the short fall in power generation.
While stating that the management of the power plant has the requisite expertise to realise the envisaged gains of privatisation, the official said Siemens Nigeria and Tetratec America were the company’s key technical partners.
He assured that with the infrastructural upgrade and technical expertise at the disposal of the company, the country would continue to witness improved power supply.
The Chief Operations Officer of the plant, Abdul-Aziz Daudu informed the BPE monitors that since takeover by the new investors, the generators and three out of the four turbines had been overhauled to boost power output from the power plant. He said plans were on to overhaul the fourth turbine.
He also said that work was in progress to upgrade the excitation systems from analogue to digital and that a new programmable logic controller has been installed for improved power generation in line with the concession agreement.
Leader of the BPE monitoring team, Abdullahi Shuaibu commended the management for the strides achieved since take over and noted that it was an attestation to the gains of privatision.
He stressed the strategic position of the Shiroro Power plant in the country’s power sector and said that it was for that reason that the Federal government decided to concession the plant instead of outright sale.
“The concession approach is to prevent monopoly within the sector as this approach would leave the doors open for more players from the private sector,” he added.