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 its electricity-reliance goal.
He said “The PPI is structured into various three phases, aimed at increasing power delivered to Nigerians to 7GW in the first phase, 11GW in the second phase and 25GW in the 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. 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,”