ELECTRICITY SUPPLY: SIEMENS AG BEGINS EXECUTION OF POWER PROJECTS IN NIGERIA
Following the approval of the Federal Government and Siemens AG on pre-engineering & concessionary financing aspects of the Presidential Power Initiative (PPI), the power project has started.
The Ministry of Power made this known in a statement released on Thursday, August 5, showing the graphical summary of the PPI deal with the German company.
The deal, which was estimated for N1,708, 013, 441 billion, went into effect last week, representing one of the Largest and most transparent Power sector investments in modern-day Nigeria, according to the Ministry.
The Minister for Power, Engr Sale Mamman said that the power project is set to effectively improve efficiency and transform the Nigerian Power Sector.
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According to the infographic representation by the Ministry of Power, the project would be carried out as follow.
105 Substations to be upgraded
70 New Substations to be built
35 Power Tansformers to be manufactured and installed
3,765 Distribution Transformers to be installed
5,109km Distribution Lines to be built
FG had entered into mega power development agreement with the Siemens AG with the German government as partners after the German Chancellor, Angela Merkel visited President Buhari a year ago.
The Presidential Power Initiative (PPI) is a power infrastructure upgrade and modernization Programme agreed to by the Federal Government and Siemens AG of Germany, with the support of the German Government.
According to the Federal Government, the ultimate goal of the Presidential Power Initiative is to modernize and increase the Nigerian electricity grid capacity from about 5 GW currently to 25 GW, over three phases, Eons Intelligence reports.
Siemens and players in the Nigerian power sector had earlier identified all major problems militating against adequate power generation, transmission and distribution in Nigeria. It took them 6 months to go round the entire country.
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Last week, FG released N61bn as part of the counterpart funding. It's a government to government agreement with no kobo going through our bureaucrats. Germany will fund the major part of it in the form of a loan.
By 2025, Nigeria is expected to generate, transmit and distribute 25,000mw from its present paltry 5,300mw when the distribution is at its peak.
Presently, the country generates 11,000mw but can't transmit up to 6,000mw hence, it powers neighbouring countries.
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