FEC To Boost Electricity Supply With $1.9bn
- Targets 7,000mgw from 5,000mgw
BY EDMOND ODOK – Determined to boost power supply across the country in the coming year, the Federal Executive Council (FEC) has approved 1.9 billion dollars for the procurement of equipment for the nation’s power sector through the Presidential Power Initiative (PPI).
With the approval, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed said the country will “be able to expand from the current capacity of 5000 megawatts to 7000 megawatts.”
Mrs Ahmed said the PPI project, which aims to modernise and upgrade power transmission and distribution infrastructure in Nigeria, has the Africa Finance Corporation (AFC) as transaction advisors with third-party consultants to implement phase one of the Initiative.
Briefing State House correspondents on the outcome of the FEC meeting presided over by President Muhammadu Buhari, the Minister said: ”Today, the Ministry of Power and the Ministry of Finance, Budget and National Planning, presented two joint memos regarding the Presidential Power Initiative.
“The first memo that we presented to council was seeking Council’s approval for the engagement of Africa Finance Corporation (AFC) as transaction advisors with third-party consultants for the implementation of the Presidential Power Initiative (phase one).”
According to her, as the transaction advisors, the AFC’s fee is $800,000 US dollars, including their reimbursable expenses, with the transaction period put at about 18 months.
She further explained that; ”The second component is the engagement of third party consultants and this includes local as well as international legal advisory firms, environmental and social impact assessment consultants, security consultants, insurance advisors, as well as tax and model auditor.
“These parties are collectively engaged in the sum of $1,116,312.45 US dollars. The objective of the PPI project is to modernize and upgrade power transmission and distribution infrastructure in Nigeria.”
Mrs Ahmed said part of the money will be invested in procuring mobile equipment for the transmission of power across the country, adding that the government is focusing on enhancing the capacity and availability of electricity across Nigeria.
The Minister told the correspondents that; “The second approval that we got from Council today is still relating to the PPI power project and the memo was seeking the approval of Council for the award of contracts for the procurement of mobile equipment for the transmission power component of the project.
”So, the procurement of 10 mobile equipment and 10 transformers was approved. The total cost of the procurement is in the sum of 62,949,447 euros with a delivery period of 12 to 18 months, depending on how we’re able to push because this equipment will be manufactured specifically for us.”
Mrs Ahmed said given the government’s commitment to boost economic activities in the country on a sustainable basis, ”The focus is to be able to very quickly enhance the power availability and capacity in the country.”
