The Federal Executive Council (FEC) on Wednesday approved a new framework aimed at expanding the 33KVA and 11KVA electricity transmission lines to ensure distribution to consumers of extra 2,000megawatts of generated idle energy at power stations.
The Minister of Power, Works and Housing, Babatunde Fashola, said this, briefing to State House correspondents at the end of the weekly FEC meeting presided over by President Muhammadu Buhari.
Government authorities claim the country currently bedeviled by poor power supply generates about 7,000 megawatts of electricity but can only transmit and distribute at most 5,000mw due to its inefficient national grid.
Fashola explained that the investment arrangement for which the Federal Government would contribute 40 per cent while the Distribution Companies (DISCOs) would provide the 60 per cent balance of the cost, but did not disclose the cost.
His words, “While the federal government has 40% shareholding, the DISCOs have 60% and will be compelled to make additional investments which they were supposed to have made.
“The process will involve international investment for the procurement of the equipment, lines and all of the accessories to build those networks and there will be more under international procurement standards.
“The Federal Government will put its own 40 percent and ask the DISCOs to put their own 60 percent and other parties who are interested will have the opportunity to improve on the investments.
“We are expecting many more power plants to be completed this year which will add almost 1,600MW to the grid. We can’t continue to accumulate power that doesn’t get to the people, so this framework is to start the process.”
Fashola further explained that “Government is now saying we can’t sit down idle doing nothing, let’s start something, a framework for investment. We will advertise for international tenders for people who make the equipment. We need transformers, conductors, switch gears, circuit breakers, etc, and with international competitive pricing.
“Once those prices are agreed, then we will call the private sector owners of the DISCOs, present our own 40 percent and ask for their own. As soon as the pricing is complete, we intend to persuade government to start making its investment. What we have done as a Ministry is a formulation of policy to government to say this is the next thing we must do and government has approved that policy.”
Fashola whose ministry also initiated the tax credit policy of investment in infrastructure said it was already yielding some benefits, like the rehabilitation of Obajana road which was however, stalled for some time following attack and kidnap of some of the construction workers.
“Lafarge Cement is also doing something in Calabar area along this line. The Bodo/Bonny bridge is also seeking to benefit from that policy. That project has also been awarded, geo-technical works, soil investigation and dredging works had started until their dredging equipment were attacked in December in the creeks,” he said.
“The Apapa/Oworoshoki Expressway is one of the roads that is a potential beneficiary. We have sent designs to the Dangote people that expressed interest. They are finalising their numbers, the bill of quantities and engineering measurements and drawing so that we will have those prices to be validated by the government procurement agency before we can proceed.”
Minister of Water Resources, Suleiman Adamu, who also briefed state house correspondents announced that FEC equally approved the rehabilitation of water supply scheme in Kazaure, Jigawa State at the cost of N3.78 billion.
Defending the contract which was awarded to CGC Nigeria Limited, the minister said Bwari has been without public water supply for 20 years and therefore it was necessary for the irrigation project there which was started in 1997, but abandoned in 2000 to be concluded.
“Very soon, under our new programme of resuscitating irrigation project with a view to expanding irrigable land available, that irrigation project is set to commence and it is important that this water project takes advantage of the return of this project”, the minister added.
Minister of State of Aviation, Hadi Sirika, also announced FEC’s approval of the upgrade of Nigeria’s flight safety laboratory in Abuja at a cost of N656 million.
He explained that established in 2012, the laboratory is used for air accident investigation purposes, had become obsolete because it still analyses only tape-based flight recorders. “Nigeria, like other places recorded plane crashes like in the case of Dana where extreme temperatures damaged the recorders because they are tape based.
“So, we are upgrading it to something that is more permanent and can stand high temperatures. These are international requirements and the amount needed is N656 million”, Sirika clarified.
Onyinye Nwachukwu, Abuja
