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Federal Govt announces plans to spend $2.3b on 7,000Mw power generation
#1
Federal Govt announces plans to spend $2.3b on 7,000Mw power generation




[Image: 5f5bfa3678016.jpeg]


The Minister of State for Power, Mr Goddy Agba has revealed that  the Federal Government plans to spend about $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).
 
According to Agba, the objective was to increase the transmission capacity from the current level of just over 5,000Mw to 7,000Mw thereby drawing the country closer to it's electricity-reliance goal.


“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." Agba said during the Nigerian Energy Forum (NEF 2020) Webinar in Lagos, tagged: Energy Solution for Sustainable Recovery.


“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 also announced that the government will implement 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.
 
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. He also said meters would be provided for enumerated customers in a year or two.
 

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