By Rejoice Peterside
Fresh facts have emerged on why the Chinese partners of Ossiomo Power shut down operations at its 95MW gas-fired independent power plant in Ologbo, Ikpoba-Okha Local Government Area of Edo State, plunging parts of Benin City and its environs into darkness.
The Jiangsu Communication Clean Energy Technology Company (CCETC), which entered into a joint venture with Ossiomo Power and Infrastructure Company in 2018, confirmed that it ordered the shutdown on September 1 over what it described as breaches of the joint venture agreement and alleged diversion of funds by its Nigerian partner.
Already, no fewer than 100 subscribers who had depended on Ossiomo Power for electricity have indicated interest to reconnect to the Benin Electricity Distribution Company (BEDC) following the blackout.
A top director of CCETC, identified simply as Mr. W, told newsmen that under the joint venture agreement, Ossiomo Power held 25 percent equity representing land and licences, while CCETC retained 75 percent equity and was solely responsible for financing.
According to him, all investments in the plant, including the distribution lines, amounting to about $20 million, were made by CCETC, while the Nigerian partner allegedly failed to transfer generating licences to the CCETC Ossiomo Power Company Limited (COPC) as stipulated in the agreement.
Mr. W further alleged that revenues from customers were being diverted into accounts belonging to Ossiomo E-Technology Company instead of COPC. He claimed the power plant generates over four million kilowatts monthly but receives payment for less than two million kilowatts due to the alleged diversion.
“From the start, our partner did not pay any money. We brought 100 percent of the investment. The understanding was that Ossiomo would transfer the licences to COPC, but they refused. Instead, customers were connected through Ossiomo E-Technology, which is not part of the joint venture,” he said.
The CCETC official further claimed that Edo State Government, which is one of the subscribers, still owes outstanding payments, while Ologbo community and some other customers connected through Ossiomo allegedly enjoy power supply without paying.
He put the total outstanding debts at about N1.4 billion, insisting that the Chinese investors had lost confidence in the arrangement.
However, the management of Ossiomo Power and Infrastructure Company has dismissed CCETC’s claims, insisting that the Chinese firm was merely a contractor and not a co-owner.
Deputy General Manager of Ossiomo Power, Engr. Francis Ekwe, explained that the company remains the sole owner of the power plant, transmission network, and associated gas infrastructure, backed by statutory licences obtained as far back as 2008.
According to him, CCETC was engaged in 2018 under a contract for the supply and installation of engines for the Independent Power Project (IPP 1), but such contract did not confer ownership or equity on the Chinese firm.
Ekwe accused CCETC of attempting to mislead the public and government authorities by claiming ownership, warning that such moves could undermine Nigeria’s local content policy.
“Ossiomo Power is the exclusive licence holder for power generation and transmission in Edo State. Our partnership with CCETC was limited to a contractual agreement for supply and installation. It is misleading for them to claim equity ownership,” Ekwe said.
The shutdown of Ossiomo Power has disrupted electricity supply to critical institutions and communities in Edo State, including government offices, industries, and residential estates previously serviced by the plant.
Energy experts warn that the dispute, if not resolved quickly, could undermine confidence in Nigeria’s independent power projects and discourage foreign investment in the sector.
Meanwhile, the Edo State Government has denied claims that it holds shares in Ossiomo Power but confirmed it is only a customer of the facility.
As both parties continue to trade words, subscribers are anxiously waiting for resolution, while many are already reconnecting to BEDC to escape prolonged blackout.
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