Fed Govt commits N360b to power projects

No Comments » November 20th, 2007 posted by // Categories: Energy Development Project



Fed Govt commits N360b to power projects         20/11/2007

The Federal Government has spent about N360 billion out of the N1.25 trillion budgeted for the National Integrated Power Project (NIPP).

There was a recent report of the stoppage of the project’s funding from the excess crude account on the excuse that it was illegal.

President Umaru Yar’Adua said government was seeking private funding for the project, which was expected to boost power generation to about 10,000 megawatts (MW) between now and next year.

Minister of State for Energy (Power), Mrs. Fatima Ibrahim said during a working visit to Egbin Thermal Power Station at the weekend that works under NIPP are at various completion stages across the country. She said that the bulk of the 2008 budgetary allocation for energy would be spent on electricity projects.

The Chief Executive Officer (CEO) of Egbin Power Station Limited, Mr. Simeon Atakulu, an engineer, briefed the minister that about N2 billion is spent every month on maintenance of Egbin Thermal Power Station in Lagos while N5 million is spent daily on low pour fuel oil (LPFO) to power the turbines.

Currently, only two units are working producing 440 MW from the 1320 MW supposed to be generated by the power station.

On the drop in supply from the power plant, Atakulu said that only two out of the 220MW each six units of the station are functional.

“Between 2003 and 2006, capacity utilization of the power plant was between 90 and 100 per cent, contributing 40 per cent of total power supply to the national grid.

“Capacity utilization dropped to about 66.7 per cent due to loss of unit six in March 2006 due to boiler failure as a result of bad water quality. In February 2007, unit three was also lost due to boiler failure and burner control failure.

He lamented the poor maintenance of the power station caused by poor funding from the government. He said despite that the first three units of the power station were synchronized for commercial operation in May 1985 and the remaining three were commissioned in November 1987, they had not received maintenance and overhauling. “Till date only units four and six have undergone major overhauling but replacement of heater on unit six and partial replacement of super heater and replacement of HP heaters on unit four are outstanding,” he said.

He also said that scope review and budgetary allocation for units one, two, three and five commenced 2001 and was concluded in 2003, which resulted to decision to carry out remedial works on units one, three and five with major overhaul for unit two while the contract for the remedial works for unit three would soon be awarded.


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