Updated: FG approves power sector recovery programme

The Federal Government on Wednesday approved a Power Sector Recovery Programme which comprises of policies and actions targeted at creating a viable sector that is privately run.

This approval was made by the Federal Executive Council (FEC) during its weekly meeting, chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

Briefing newsmen after the meeting, the Minister of Power, Works and Housing, Babatunde Fashola, said the programme will also checkmate service delivery by Distribution and Transmission Companies, as well as
the whole value chain.

“The programme comprises of many pet policy actions, operational and financial interventions that need to be carried out by the government to improve transparency service delivery, performance of discos, transmission company and the entire value chain, in order to create a
more viable power sector that is private sector driven,” Fashola said.

Fashola, who briefed alongside the ministers of Information and Culture, Lai Mohammed and the Federal Capital Territory, Mohammed Bello, said the new programme would address access to renewable energy,
vandalisation of government assets, as well as the stability of foreign exchange policies that might affect the sector. The programme is also expected to restore the confidence of investors in the Nigerian power sector.

“Some of the highlights of the programme are how to simplify and reduce the cash deficits that have accumulated as a result of previous unilateral reductions of tariff by the last administration, during the running of the elections, how to make the DISCOS viable, accountable, responsive to customers, ensure stability of the grid and expansion of the grid and transparency and communication within the sector.

“Also, the process for Ministries, Departments and Agencies (MDAs) debts and how to improve sector governance, our roles in the buzz, the quality of personnel on the board of the DISCOS, it addresses access
to renewable energy, especially in rural areas using mini-grids and stand-alone solutions and how we are going to carry out the solutions that have been developed for 37 federal universities and seven tertiary hospitals.

“How to solve the Niger Delta problem and also how to ensure there is a stable and predictable foreign exchange policy for the sector, so that it is somewhat protected from sudden headwinds of the volatility of the foreign exchange market, so that they can plan and deliver.
“Also how to address the issue of vandalisation at consumer and production levels of pipelines and so on, as this will help bring confidence to the market and stimulate the appetite that currently exists globally for Nigeria’s power sector.

“We see a lot of people who want to invest but some of them are tied to what other international financial institutions do and the institutions are also waiting to see us commit to these things,” he said.

Council also gave approval for the construction of 12 roads in various states across the country, in the sum of N80 billion. The roads cut across Adamawa, Taraba, Sokoto, Zamfara, Bauchi, Plateau, Osun, Kwara, Kano, Oyo, Kaduna and Kano states.

Following a memo by the power ministry, the council also gave approval for the engineering and consultancy design for Access Road 1 and 2 to link Asaba in Delta State and Onitsha in Anambra State, to link the Second Niger Bridge project. The consultancy costs N150.840 million Fashola told newsmen.

“Subsequent to the award of further work of the Second Niger Bridge, we have started work now by this approval on the design of the link road that will connect the two states to the bridge. The design is expected to be completed in six months and we will start procurement
and as the bridge advances, we can then connect the two states. The contract sum is N150.840 million” he said.

Former President Goodluck Jonathan had in 2014 flagged off the N117 billion Second Niger Bridge in Onitsha, Anambra State, awarding the contract to Julius Berger in a Public-Private Partnership (PPP) arrangement, which was expected to link business arteries of the South
East with the South West and North.

Fashola said council also gave approvals for the extension of the consultancy and project management contract for the Katsina Wind Energy Farm project.  The project was awarded in 2010 and should have been completed in 2013. Fashola explained that the expatriate who was
implementing it was kidnapped and when he was eventually rescued, he never came back and that delayed the project. “But we have revived the project, a new contracting team is back on site. The  contract of the
consultants representing us has expired and so we are extending his contract to cover new period of completion”.

 

Elizabeth Archibong