In its bid to ensure grid stability next year, the Federal Government’s Power Sector Recovery Programme has set a baseline power supply for a minimum of 4,500MWH/H daily for 2018.
The Programme which power sector Chief Executive Officer, led by the Minister of Power, Works and Housing, Babatunde Fashola took turn to explain to journalists in Abuja, has proposed in its operational and technical intervention that would stabilize power not to dip below 4,500MW by 2018.
It says that ” Baseline power generation, transmission and distribution: Ensure minimum baseline power supply of 4,500MWH/H is guaranteed and distributed daily from 2018 to ensure stability of the grid.”
Besides, the Programme also unfolded financial interventions for funding both past and further sector deficits from 2017 to 2021 and execute a plan to fund the required Electricity Market Support until tariffs support sector liquidity.
Part of the financial plans, according to the Programme, is to eliminate past sector revenue deficits of N420billion from December 2016.
The Programme also however revealed that the World Bank has expressed its willingness to assist the Federal Government electricity plan with a total financial support of $2.5billion.
Meanwhile, Fashola said that the Federal Government is about to start negotiation with the Chinese Exim Bank for the $4.92billion loan for the construction of the 3050Mega Watts (MW) hydroelectric power plant in Mambilla, Sarduana Local Government Area of Taraba State.
He recalled that the Federal Government had last Friday signed the contract for the project construction with three Chinese firms.
The $5.79bn project is expected to be completed in six years. The funding consist of $4.92bn from the Chinese Exim Bank and other Chinese lenders are expected to provide 85 percent of the contract sum amounting to $4.92 billion, the Federal Government will put forward 15 percent amounting to $868.87million.
The scope of work for the project includes, four large dams (Nya, Sumsum, Nghu and Api Weir), and two underground power house of 12 units of 250mw each.
The other project components include two units of 330KV of 700km transmission lines to Makurdi and Jalingo, 120km of access roads connecting the project site and nearby communities and the resettlement of an estimated 100,000 impacted persons.
Fashola however said Sunday that: in terms of Mambilla plant construction, two major steps have been taken. We have gotten the Federal Executive Council approval. That was what happened a few months back.
“The next step was to sign the execution and procurement contract, which is the contract for construction that took place last Friday.
“As you rightly pointed out, it is supposed to be funded by the Chinese Exim Bank loan, the negotiation for the loan will now start. For this, now we are waiting because it is now the Ministry of Finance takes over, who are the ones who do treasury work for Nigeria. So she (Minister of Finance) will lead the negotiations . And when we secure the loan then we are going to be able to tell you that this is the start date.”
The minister revealed that despite the expectation of the loan a lot of preparatory work like the signing of the Memorandum of Understanding (MoU) for the loan with that state government ongoing.
He added that a liaison office has been hired in the state government while the project planning team was also constituted by the ministry.
The ministry, according to him, has identified people while the contractors have already started route estimation, route analysis and movement of heavy equipment.
The Permanent Secretary, Dr. Louis Edozien said that the Nigeria Electricity Supply Industry (NESI) supplied 4,922MW on Tuesday, stressing that it was only 100MW lesser than the average highest peak power generation that was recorded in the market this year and ever.
His words: “Tuesday , the peak generation on the national grid was 4,922.9MW. It is just 100MW less than the maximum we ever had on the grid of 5,074. The total energy generated yesterday was 99,022MWH. That amount that you consumed in your homes is part that 99,022MWH.”
Meanwhile, the Managing Director, Nigeria Bulk Electricity Company (NBET) said that N701billion was implemented from the January invoices.
According to her, the January invoices have been merged because when the generation companies supply electricity 90 days time lag have to pass for the invoices to be read and reconciliation to be done before payment.
The NBET, according to her, is not owing but it is operations a conventional system which has made it pay from January to May for the electricity they supply for the period.
The delay, according to her, is that there must be a reconciliation for the past payment which it is doing manually and expects to conclude the process in the next two weeks to pay to the outstanding from June to date.
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