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Published On: Tue, Feb 4th, 2020

Power agreement: Follow due process, BEDC replies Edo govt

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By Osaigbovo Iguobaro, Benin

The management of the Benin Electricity Distribution Company (BEDC) has advised Edo State government to follow due process in procuring Osiomo Power Plant in the State instead of pledging to call a snap by issuing executive order by fiat that can create pointless delay
Mrs Funke Osibodu, the Managing Director of BEDC said this at a press Conference on Friday in Benin while reacting to the expiration of 48 hours ultimatum given to the organization and Ossiomo power plant to sign the bilateral agreement.
Osibodu who was represented by Mr Abel Enechaziam, the Chief State Head of BEDC, accused the government of attempting to circumvent due process in line with the regulations governing the power value chain.
She said “let me use this opportunity to clear the air on the ultimatum given by the State government.
“BEDC has always be in the fore front of attending meetings regarding the bilateral agreement we are about to sign with government and Osiomo Power Plant.
“We are in a regulated business and power have regulatory guidelines which we must follow.
“There were over 25 areas we had disagreement but we have allow the issues to go except two major ones that are critical before the agreement would be signed,” she said.
According to her, part of what we are saying is that the valuation of the lines to be used to convey power must be done through open competitive and transparent tendering process.
“This is in line with the National Electricity Regulator Commission (NERC).
“And Osiomo does not want to start construction and Edo state is coming as an eligible customer we need to convey power to them through the osiomo who generates power.
“But because of the limited capital access that Discos have to spend for the year, whatever capital that is allowed affect the tariff of customers.
“It is a big project that is capital intensive and we cannot use money met to repair network for consumers to go and construct a new project for someone else.”
Osibodu who displayed copies of the reply letter by the management of the copy sent to the government, noted that” We have ask them to appoint someone to work under the supervision of BEDC which they have refused,”.
Recall that the State government on January 29 gave BEDC and Ossiomo Power Plant 48 hours ultimatum to sign the bilateral agreement.

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