How unpaid Invoices Frustrate Our Operations – Mainstream MD, Engr. Audu

At its year-end retreat last month, the management of Mainstream Energy Solutions Limited, concessionaires of Jebba and Kainji Hydropower Plants, outlined their challenges in the nation’s privatized power sector.

Addressing a team of journalists on facility tour of the plants during the retreat, the MD, Engr. Lamu Audu, presented a worrying picture of how liquidity challenge has hindered their operations and plans since taking over management of the plants in November 2013.

“As it is now, we have an outstanding invoices of about N44 billion for power supplied to the national grid.” He said. “How are we expected to sustain our operations and deliver on our concession agreement when the market isn’t playing its part?”

Evaluating the company’s dilemma, the MD revealed that only 19 to 25 percent of their invoices for energy contributed to the national grid were paid. That, he said, had also frustrated salary payments.

The MD further attributed the non-complying market to their inability to attract lenders, as all are unwilling to invest in a continuously owed venture.

He also acknowledged that management of energy company is capital intensive, and presented costly interventions authorized by the management to revive and sustain the two plants. “When we took over management of these plants, Kainji hydropower plant wasn’t generating any megawatt,” said Mr. Audu. “In fact, electricity was imported to power this station. It was running on a generator set. Can you imagine?