Govt unveils multi-billion naira power boost plan, 10,000 megawatts of electricity not feasible in 2010 – FG

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TRIBUNE

10,000 megawatts of electricity not feasible in 2010 – FG

Ayodele Adesanmi, Abuja – 15.08.2008

THE Federal Government on Thursday said that it could not meet power output of 10,000 megawatts by 2010 as earlier announced, shifting the date to 2011.

It also said that it had concluded arrangements to spend N1.42 trillion on 10 key power projects between 2008 and 2010 to improve power generation.

The Minister of State for Energy (Power), Hajia Fatima Balaraba Ibrahim, who made these known, said that the amount to be spent was a short-term strategy at arriving at 6000mw of power in the next few years.

She mentioned some of the projects to be captured under the amount for the next three years as: the Mambila Hydro Project, which will gulp N394 billion; completion of the National Integrated Power Plants (NIPP) with N355.28 billion and the expansion of transmission grid with N323.511 billion.

According to her, “since this is a government that believes in the rule of law and due process,” the three tiers of government have agreed to use part of their share of the excess crude account.”

The minister disclosed that the project, which will also involve the rehabilitation of existing power plants of the power utility company – Power Holding Company of Nigeria (PHCN) – with N19.55 billion, will add fresh 1,500mw to its existing 2,100mw.

She added that the NIPPs should contribute 1,140mw while Independent Power Producers (IPPs) are expected to contribute 1,300mw to bring generation to 6,040mw by 2009.

She added that power generation by December 2008 was estimated to be 4000mw while 10,000mw will only be attained by 2011 and not 2010. She gave no reason for the shift in date.

The minister said that the ministry had taken steps to improve power supply in the country with the distribution of 600 transformers and other material to all the distribution zones.

“To ensure that the impact of government in this regard is felt in no distant time, the chief executives of the zonal distribution companies are given six weeks to complete the installation of the transformers and materials.

The gas supply to power stations, according to her, would be embarked upon by NIPP.

According to the minister, there were a total of 100 transmission lines and substations of projects and one telecommunication project. These projects, according to her, were grouped into 27 lots.

She said that 21 of the projects were for the immediate evacuation of power from the new IPP while 19 projects were to stabilise the national grid network by closing the loop linking Ikot–Abasi -Ikot Ekpene – Enugu Makurdi – Jos axis.

“The remaining 60 projects are to strengthen the transmission network for reliable bulk power delivery to major load centres in the country,” she said.

 

 

THE NATION

15/8/2008

 

Govt unveils multi-billion naira power boost plan

From John Ofikhenua,

Abuja

The Federal Government yesterday in Abuja unveiled a short-term strategic plan to boost power supply between now and 2011.

Under the plan, 4000megawatts of electricity will be generated this year.

Minister of State for Energy (Power) Mrs Fatima Ibrahim said in Abuja that the government and stakeholders had perfected plans for to increase power supply.

She said 6000megawatts would be generated next year and 10,000megawatts in 2011.

The minister said the plan would gulp N731.872 billion this year, N477.804billion next year and N209.722 in 2011.

According to her, the plan will be executed through the rehabilitation of all power plants in the country and the completion of the priority National Integrated Power Plant (NIPP)

and Power Holding Company of Nigeria (PHCN) projects.

It also includes the reinforcement and expansion of transmission network.

Mrs Ibrahim said the issue of gas supply in terms of quality and quantity had been resolved with the supply companies.

She added that the technical and commercial performance of PHCN would be optimised, adding that she had inaugurated a transition board to fast track PHCN’s performance.

She said about 6,040 megawatts would be generated through improvement on the existing 2,000 megawatts, and another 1,500megawatts generated through the rehabilitation of PHCN plants.

The government, she said, hoped to generate 1,300 megawatt from NIPP.

The minister said the strategic plan involved the restructuring of the management at the sector’s headquarters and accelerated improvement of contracts with successor companies and the eventual complete take-off of the sector’s privatisation.

On the present inadequate power generation, she said the Ministerial Task Force on Generation, Transmission and Distribution had assessed the sector and realised that there was dismal supply of 2,500megawatts instead of the required 12,000megawatts.

She attributed the poor supply to obsolete and unreliable power plants, which are about 30 years old.

The task force, she said, found out that wet gas to power plants and insufficient workforce in the ministry were responsible for the power problem in the country.

She said according to findings, there was no spinning reserve, even as the sector relies heavily on natural gas and poor operational management.

Although there is capacity for transmitting 4,000megawatts, weak radial network, poor voltage profile and inadequate coverage currently permeates the sector.

Mrs Ibrahim said the transformers were presently overloaded because of obsolete protection switching devices, poor metering and collection systems.

She blamed delay in the full implementation of the pre-paid metering system on the contractor, whom she said began work late. She said some indigenous contractors have indicated interest in power distribution.

On gas flaring, the Minister of State for Energy (Gas) Chief Emmanuel Odusina said the government was not merely saying there would be a halt in flaring, it has also set aside N1billion in this year’s budget to fast-track the implementation.

GUARDIAN

N731b goes for power projects
From Mohammed Abubakar (Abuja) and Eric Meya (Sokoto)

DETAILS of proposed expenditure for the power sector over the next three years unveiled by the Federal Government yesterday has shown that N731 billion has been allocated to electricity in fiscal year 2008.

This will be followed by another N477.8 billion in 2009 and N209.7 billion in 2010, towards meeting the 10, 000 megawatts target by 2011.

The projects, government said were designed to provide adequate and stable power supply in the country in the next four years. They will be executed to boost generation, transmission and distribution to facilitate the emergence of a private sector-driven, competitive and efficient power industry.

At a ministerial briefing yesterday in Abuja, the Minister of State for Power, Mrs. Fatima Balarabe Ibrahim, said government during the period would rehabilitate all the power plants and complete priority National Integrated Power Projects (NIPPs) in the country.

For a start, she said government was working towards increasing the generation capacity to 4,000 MW by December this year from the current output of 2,100MW. This is to be increased to 6,000MW by December next year and 10,000 MW in 2011.

Government, according the Minister, will also expand the transmission network, rehabilitate distribution network and optimise the technical, commercial and managerial performance of the Power Holdings Company of Nigeria (PHCH).

Mrs. Ibrahim said N687.7 billion over the next two years to rehabilitate some power infrastructure, giving the breakdown as N477.8 billion for 2009 and N209.7 billion for 2010.

Some of the projects to be executed in 2009 are NIPPs (N96.1 billion), Multi-Year Tariff Order (MYTO), N77.3 billion in 2009, and N35.8 billion in 2010 while the expansion of transmission grid to 16,000MW will cost N147.5 billion in 2009 and N84.3 billion in 2010.

She said government would spend N13.9 billion on the Zungeru Hydro project in 2009, and N7.9 billion in 2010, while the Mambilla Hydro project will receive N142.9 billion in 2009 and N81.6 billion in 2010.

Of the N731.8 billion to be spent this year on the rehabilitation of equipment, N19.5 billion will be spent on the rehabilitation of PHCN plants; N10.2 billion for the repair of transmission grid; and N1.5 billion for the NPTI.

She said that in 2005, when the defunct National Electric Power Authority (NEPA) was unbundled into 18 companies, the intention was to make them self-sustaining, “but the government is still providing them funds for their operations because they have not been able to regenerate to sustain their operations.”

Meanwhile, Sokoto State government has concluded plans to set up its own independent power projects. The Commissioner for Education, Mohammed Arzika Tureta, told reporters after this week’s state executive council meeting that the state government was discussing the project with a private firm.

According to him, there were two proposals before government which are for 60 megawatts and 80 megawatts projects, and would require financial commitment of N6.8 billion and N8.3 billion to complete.

He said the power project could be completed within six and 15 months depending on which of them the state government would choose.

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