Senate hinges privatisation on lack of maintenance culture

The Chairman Senate Committee on Privatisation, Senator Olugbenga Obadara has said that the lack of maintenance culture in public enterprises was one of the reasons for privatisation of such public enterprises.

He made this known when the Senate Committee on Privatisation went on an oversight visit to Olorunsogo Power plant in Ogun State recently.
He decried the poor maintenance history, saying it greatly affected operations of the plant.
Head, Public Communication of the Bureau of Public Enterprises (BPE), Joe Anichebe quoted Obadara as saying that where there is adequate availability of power, there would be appreciable growth and development in Small and Medium Enterprises (SMEs) and growth in the Nigerian economy.

In response,  the Chairman, Sepco-Pacific Partners Limited, owners of Olorunsogo Power Plant, Dr. Deji Adeleke said his company was well aware of the maintenance issue at the plant when it conducted a due-diligence on the plant facilitated by the Bureau of Public Enterprises (BPE). He said that his company inherited equipment at the plant that not had any major overhaul maintenance in the seven years since the commissioning of the plant contrary to the recommendation of the manufacturers.

Adeleke disclosed that the company has embarked on an aggressive program of a major overhaul of the plant based on a medium to long-term plans.. To effectively carryout the program, the Chairman said his company had engaged a Chinese firm, Huafeng Electric Power Technology Engineering Company, as Operation and Maintenance (O&M) operators for the plant.
It would be recalled that the Bureau of Public Enterprises (BPE) in December 2013 transferred the ownership of Olorunsogo Power plant to Sepco-Pacific Energy Partners Limited. Olorunsogo power plant consists of 8 PG6581B gas turbines with associated generators and auxiliaries. The plant has a generation capacity of 336mw.

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