The Federal Government of Nigeria has revealed how much money will be spent on the first phase of the Presidential Power Initiative (PPI)
Speaking during the Nigerian Energy Forum (NEF 2020) Webinar in Lagos, tagged “Energy Solution for Sustainable Recovery” on Thursday,The Minister of State for Power, Mr Goddy Agba revealed that the Federal Government of Nigeria will spend 2.3 billion dollars with aime at increasing the nation’s power transmission capacity to 7,000MW.
According to Agba, the various interventions are grouped into phases with the near term objective being to increase the transmission capacity from the current level of just over 5,000MW to 7,000MW.
“The PPI is structured into various three phases, aimed at increasing power delivered to Nigerians to 7GW in first phase , 11GW in the second phase and 25GW in third phase.
“The project is to be executed at the cost of 2.3billion dollars forms the phase 1 of the PPI and is funded by a loan from a consortium of German Banks for 85 per cent of the contract sum; while 15 per cent counterpart funding is provided by the federal government.
“A Special Purpose Vehicle (SPV) called FGN Powerco is in the process of being set-up following Mr President’s approval.
“The SPV will warehouse the project’s contingent liability for accountability.
“We have also constituted the Nigerian Project Management Office (PMO) with the sole responsibility of providing project management of the project on behalf of the government,” he said.
Agba said that the Federal government of Nigeria (FGN) was also implementing the Transmission Enhancement Programme with key development partners to improve the sector.