The Federal Executive Council (FEC) has approved the sum of $1.9 billion for the procurement of equipment meant to boost Nigeria’s power supply from 5000-7000 MegaWatts (MW) under the Presidential Power Initiative.
This was disclosed by Nigeria’s Finance Minister, Zainab Ahmed on Wednesday evening, in a press briefing with State House correspondents on the outcome of the Council meeting presided over by President Muhammadu Buhari.
She revealed that 2 memos were presented by the power and finance ministries, including the engagement of Africa Finance Corporation (AFC) as transaction advisors with third party consultants for the implementation of the Presidential Power Initiative (phase one).
What the finance Minister is saying
Mrs Ahmed said, “The first memo that we presented to the council was seeking the 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).
”So, for the AFC, the transaction advisors, their fee is $800,000 US dollars and the transaction period is 18 months and this includes their reimbursable expenses.
”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.”
She also added that the second approval relating to the PPI power project, 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.
“The focus is to be able to very quickly enhance the power availability and capacity in the country.
“With this particular approval, we’ll be able to expand from the current capacity of 5000 megawatts to 7000 megawatts,” she added.
What you should know
Recall Nairametrics reported last week that the Federal Government stated that the Siemens Power Project under the Presidential Power Initiative will increase Nigeria’s electricity from the current 4,500 megawatts (MW) to 25,000 MW.