The Federal Government last week inaugurated a special Purpose Vehicle SPC that would own and manage the Presidential Power Initiative. This in one word is the entity that would oversee the overall activities in relation to the power project in which the pre-engineering contract has been approved.
It is perhaps the formation of this SPV that the Federal Government was waiting for to approve the letter of contractual agreement between her and Siemens the company handling the project is being delayed.
The SPV company would now take care of the interest of the Federal Government in the discos where it has 40 percent stake and it will also be providing project management for the implementation of and serve as the key manager to ensure cohesion and seamless execution.
Some industry operators have therefore admonished the committee members to show commitment to the course of the power project and not allow ego to derail the objective.
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President Muhammadu Buhari inaugurated the Special Purpose Vehicle for Presidential Power Initiate to assist the government in improving the delivery of power in the country.
Members of the committee inaugurated by Buhari include the Attorney-general of the Federation and Minister of Justice, Abubakar Malami (SAN), the Minister of Finance, Budget, and National Planning, Zainab Ahmed; Minister of Power, Saleh Mamman; and Minister of Works and Housing, Babatunde Fashola. Others are Director-general of Nigeria’s Bureau of Public Enterprise, Alex Okoh, and the President Nigerian Society of Engineers, Babagana Mohammed.
The president while inaugurating the committee described the power sector as one of the most critical components of sustainable development and expressed commitment to improving the delivery of power in the country as his enduring and defining legacy.
He said, “Following the Federal Executive Council Approval, the coast is now clear and the SPV has the responsibility of executing the Presidential Power Initiative (PPI), providing project management for the implementation of PPI and serving as the key manager to ensure cohesion and seamless execution.”
The delay in releasing the letter of contractual agreement by the Ministry of Finance has caused the project to suffer some delays already. This delay might affect the 2025 target of achieving 25,000 megawatts of electricity, an industry source stated
The letter for the contractual agreement is supposed to spell out terms, conditions and the scope of the project and would be signed by the parties representing the Federal Government.
