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FG’s N40bn debt, others crippling operations of Ibom Power Company — Gov. Eno
Federal Government’s N40 billion debt owed to the Ibom Power Company (IPC) is crippling operations of the state-owned generating company (GenCo), according to Governor Uno Eno.
The Akwa State governor, Eno who disclosed this, weekend, during a media briefing in Uyo to mark his third anniversary in office, also stated that the power plant has, however, been able to offset a N25 billion debt owed the Savannah Energy Company for gas supplied to the state-owned GenCo.
The Governor explained that Ibom Power Company owed the Savannah Energy N25 billion for gas supplies to the plant due to the federal government’s continued failure to pay for electricity supplied to its national grid by the plant.
Eno however, said this has negatively impacted on the IPC’s ability to meet its own responsibility to the Akwa Ibom citizens in electricity supplies.
The governor further assured that plans are already in motion to set up a State Regulatory Commission that would handle the generation and transmission of electricity, even as he admitted that the process was a long one that cannot be rushed.
Eno assured ‘that once every necessary procedure, payment of debt and reclaiming of the State’s asset and investment in Port Harcourt Electricity Development Company (PHED), is completed, the state would commence distribution of power to citizens.’
“Ibom Power Company has been run down completely. As of today, on that IPC, every quarter we pay Afreximbank $540,000. I met a debt of $9.7 million that they have gone to a court in the UK, collected a judgment against us.
“They were about to take over that IPC. We ran to Barr. Paul Usoro (SAN), who helped us secure a negotiation. They collected the judgement and were already filing the judgement.
“We’re owing Savannah Energy, who was giving us gas, over N25 billion because the federal government was owing us well over that, about N40 billion which we have supplied to the national grid, which they were not paying.
“So, IPC couldn’t pay Savannah. Savannah didn’t even have money to drill gas again because we are the biggest client they have. As a result of that negotiation, we got N25 billion which we remitted straight to Savannah, so that Savannah can be in business and give us gas,” he stated.
