June 11, 2009

FG approves N348bn NIPP projects

By Daniel Idonor
ABUJA — AN extraordi nary session of the weekly Federal Executive Council (FEC) held yesterday at the Presidential Villa, to fast-track implementation of government’s policy in the power sector, in line with the targeted generation of 6,000 megawatts of electric power by December, 2009 approved nine memos from the Ministry of Power on various contract jobs worth about N348 billion, already awarded under the National Integrated Power Projects (NIPP).

The special meeting, coming a day after the regular one was held, lasted all day and was presided over by President Umaru Yar’Adua with Vice President Goodluck Jonathan in attendance.

The Minister of Information and Communication, Prof Dora Akunyili, briefed State House Correspondents on the outcome of the FEC meeting.

The approvals based on the recommendations of the Presidential Council on the National Integrated Power Projects (NIPP) include N21,43 billion, 14 million euro and $1.97 billion respectively.

The drive, according to Prof Akunyili, is tailored towards achieving the President’s target of 6,000 megawatts of electricity by the end of 2009 and 10,000 Mw by 2011.

Akunyili, who was joined by Mr. Lanre Babalola, Minister of Power told State House correspondents that the approvals are part of the “effort of the Federal Government towards improving the power supply situation across the country”.

The minister noted that the projects, if completed “are expected to enhance energy throughout the country”.
Akunyili said “award of contract for the manufacture and supply of 20 numbers numerical relay testing equipment complete with accessories and software, plus factory acceptance test and training of two number transmission companies of Nigeria Engineers worth N46.4 million plus Euro 994,660 at prevailing exchange rate during the time of payment was ratified by council.

“Council also ratified President Yar’Adua’s approval on the recommendation of the National Integrated Power Project Steering Council which involves contract extension of Kainji 330KV substation, construction of 1 by 150 MVA, 330/132KV substation at Kainji and construction of 2 by 30/40 MVA substation at New Bussa in favour of Messrs MBH Power Ltd.”

She stated that the contract sum is N1.4 billion plus $14.9 million at the prevailing exchange rate during the time of payment. Completion period is 18 months.

According to her, when completed, the re-enforced substations will contribute to system stability and improve power supply throughout the country.

“Another ratification of President Yar’Adua’s approval on the recommendation of NIPP was approved involving contract for the construction of Ikorodu-Odogunyan-Shagamu 132 KV double circuit line, which was awarded in favour of Messrs PPCL/Westcom Joint Venture in the sum of N1.1 billion Euro 8.9 million”, she added.