FG Approves $2.3bn For 7,000Mw Power
The Minister of State for Power, Mr Goddy Agba said the Federal Government plans to spend $2.3 billion in the first phase of the Presidential Power Initiative (PPI) project, aimed at increasing the nation’s power transmission capacity to 7,000megawatts (Mw).
He spoke during the Nigerian Energy Forum (NEF 2020) Webinar in Lagos, tagged: Energy Solution for Sustainable Recovery yesterday.
According to Agba, the various interventions are grouped into phases with the near term objective being to increase the transmission capacity from the current level of just over 5,000Mw to 7,000Mw.
“The PPI is structured into various three phases, aimed at increasing power delivered to Nigerians to 7GW in first phase, 11GW in the second phase and 25GW in third phase.
“The project is to be executed at the cost of $2.3billion forms the phase 1 of the PPI and is funded by a loan from a consortium of German Banks for 85 per cent of the contract sum; while 15 per cent counterpart funding is provided by the federal government.
“A Special Purpose Vehicle (SPV) called FGN Powerco is in the process of being set-up following Mr President’s approval. The SPV will warehouse the project’s contingent liability for accountability.
“We have also constituted the Nigerian Project Management Office (PMO) with the sole responsibility of providing project management of the project on behalf of the government,” he said.
Agba said that the government was also implementing the Transmission Enhancement Programme with key development partners to improve the sector.
“The World Bank, African Development Bank (AfDB), JICA have raised $1.6 billion for Transmission Rehabilitation and Expansion Programme (TREP), which is ongoing now with major projects as follows:
“The Alaoji-Onitsha, Delta Power Station-Benin and Kaduna-Kano at $410 million and $29 million is intended to build a 330kV Double Circuit 62KM line between Birnin Kebbi and Kamba.
“The Lagos/Ogun Transmission Infrastructure Project (JICA) with $200 million, Abuja Transmission Ring Scheme (AFD)-$170 million and Northern Corridor Transmission Project (AFD & EU) with $274million,” he said.
The minister commended the NEF team for its tenacity and vision in building the platform into a credible vehicle for the exchange of knowledge, skills, ideas and proffering solutions towards the development of the Nigeria Electricity Supply Industry (NESI).
Also speaking, the Chief Executive Officer (CEO) Nigerian Electricity Regulatory Commission (NERC), Dr John Momoh, said the new tariff put in place would address the challenge from stakeholders in power sector.
Momoh said the regulatory body would be monitoring service providers to ensure that quality services were provided for customers.
He said with the presidential intervention in metering, meters would be provided for enumerated customers in a year or two.
The National Chairman, Nigerian Institute for Electrical and Electronics Engineer (NIEEE), Mr Adeyemi Kings, said there should be more infrastructural development in the sector to meet the demand of increasing customers.
The Chief Executive Officer of University College Hospital (UCH), Prof. Abiodun Otegbayo said the slightest power interruption can affect the results of a laboratory test and also affect treatment in healthcare.
According to the CEO, uninterrupted power supply is required on the equipment, patients and operations.
He said the healthcare required remarkable investments and investing in power challenges will assist the sector.
In his welcome address, NEF Chairman, Dr Daniel Adeuyi, said over 300 participants participated at the virtual conference and workshop.
“Globally, the grand challenge is how to recover quickly from the COVID-19 outbreak. Sustainable energy solutions can facilitate economic growth at local, national and regional levels. However, lack of access to modern and affordable energy services can reverse development,” he said.
Former National Chairman, NIEEE and the Co-Chair of NEF 2020, Mr Adekunle Makinde, had earlier said that efforts were being made to feature four top-class workshops on Power Africa Nigeria Power Sector Programme.
“They are Women Leaders Energy Roundtable, Clean Energy Recovery Impact by All On, and the Africa Energy Ideas Competition Finals, led by NIEEE-NEF in collaboration with All On Hub.
“We challenge all stakeholders to act together in exchanging knowledge, building capacity and initiating new business to accelerate the pace of recovery and sustainable energy development in Nigeria,” he said.