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Tag: Babatunde Fashola

  • Obaseki to commission Otuo general hospital, reconstruct sobe-sabongida road

    Obaseki to commission Otuo general hospital, reconstruct sobe-sabongida road

    The Governor of Edo State, Mr. Godwin Obaseki, said his administration would commission the State’s General Hospital in Otuo before December 25, 2017.

    He stated this in Afuze during his state-wide thank-you-tour of Owan East and West local government areas of the state.

    Earlier in Owan West local council, the governor expressed his readiness to reconstruct the Sobe – Sabongida Road and disclosed that the state government has received approval from the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to reconstruct the road.

    He assured that the contractor handling the Okpoji Road project will be mobilised to commence work on the Sobe-Sabongida Road after completing work on the former.

    “Owan West is the only local government council that is disconnected from the state capital. We will ensure the people are re-connected,” he said.

    He promised that work will commence early next year on the Federal Institute of Vocational Training, Uzzeba, to equip youths from the area with skills that will make them employable, while 500 hectares of land will be added to Sobe Farm to provide jobs for the youths.

    Chairman of the All Progressives Congress ( APC ) in the local council, West Tunde Omoruwa, commended the governor for translating his victory at the polls and the tribunal to better life for Edo people.

    He commended the governor for the agricultural revolution in the state and thanked him for setting up Sobe Farm. “We appeal that the Sobe Primary Health Care Center be upgraded to a hospital with a resident doctor,” he said.

    Obaseki further said that Afuze-Erah-Ekpoma road has been awarded for re-construction and noted that the priority of his administration is to create jobs for Edo people and make life better for them.

    He maintained that Afuze Technical College is top priority for his administration and said that work will commence in January 2018.

    “Owan East has a lot of potential in mining and we have a consultant recommended by the Minister of Solid Minerals, Dr. Kayode Fayemi, that will work with us. We will also explore the potential of Owan East for the production of cashew nuts.”

    Chairman of the APC in Owan East LGA, Chief Edeki Roland, appealed to the governor to re-construct Afuze-Erah-Ekpoma Road; Uokha-Ohanmi-Arokho; Ihievbe-Ihievbe Ogbe and Ivbiaro-Warrake-Egeunu roads.

  • NBET, Qua Iboe power plant sign 540mw power purchase agreement

    NBET, Qua Iboe power plant sign 540mw power purchase agreement

    The Minister of Power, Works and Housing, Babatunde Fashola on Thursday presided over the signing of a Power Purchase Agreement (PPA) between the new investors for the Qua lboe Power Plant Limited (“QIPP”) and the Nigerian Bulk Electricity Trader Pic (‘NBET’)  for a 540MW gas-fired power plant.

    The project which is located in Akwa Ibom State is expected to raise power generation by 540MW by 2021.

    Besides, the government also approved a Put/Call Option Agreement (PCOA) the NBET and Ministry of Finance agreed with the project’s investors – the Qua Iboe Power Plant Limited (QIPP) which is jointly owned by the Nigerian National Petroleum Corporation (NNPC), Black Rhino Group, and Dangote Group.

    The minister said that the pact was in line with the desire of the government to consistently grow Nigeria’s ability to provide stable electricity to its 180 million citizens, about 50 percent of who are yet to be connected to the country’s power grid.

    Following from this, the NBET and QIPP disclosed at the PPA signing ceremony in Abuja that work on the project which is expected to cost about $1.1 billion to complete, would commence as soon as a financial closure is achieved within the second quarter of 2018.

    They equally noted that Mobil Producing Nigeria (MPN) which initiated the power project with the NNPC as a fully equity funded structure, had sold its rights to develop it to the new investors – QIPP. MPN, however, has a 20-year gas sales agreement with the new investors to supply about 400 million standard cubic feet per day (mmscuf) of gas to the plant through an undersea gas line connected to its offshore oil production facility.

    Similarly, the parties indicated that Nigerian law firm, Banwo and Ighodalo was its transaction advisers and that QIPP would when completed become the lowest cost thermal plant in Nigeria due to what they said was its efficient combined-cycle design and competitive gas price.

    They stated that the plant will commence commercial operations in 2021, in addition to unlocking investments in power transmission infrastructure.

    QIPP, they added has also decided to build a 58 kilometres long transmission line to evacuate its output, but Fashola assured that the Ikot Ekpene to Ikot Abasi transmission line of the National Integrated Power Projects (NIPPs) would be ready to take power from the plant.

    Giving further details of the agreement reached, the Managing Director of NBET, Dr Marilyn Amobi, explained that once the investors achieve a financial closure, they would be expected to commence construction and subsequently expedite works to commission the plant within 18 to 24 months.

    Amobi noted that all the financial investments needed for the project would be provided by the shareholders and that all parties have agreed to its commercial and technical terms.

    “This will now go to the NERC who will now vet it as the regulator to be sure that issues and contract elements that we agreed to are in line with what should be, then they will approve before it goes to the Bureau of Public Procurement and then to the Ministry of Justice.

    “We are just starting that now because Mobil decided to have its shares go to Black Rhino, and then we had to review the documents again because the original project was fully equity funded but now the structure has changed and it will now be debt and equity,” said Amobi.

    Also in his remarks, the Chairman of Black Rhino, and Emir of Kano, Muhammad Sanusi II, said the conclusion of the PPA and PCOA processes would give promoters of the project the confidence to accelerate their final investment decision (FID).

    He said parties were ready to mobilise funds, adding: “Within the next months, we will achieve a financial closure to bring in about $1.2 billion worth of direct investment into Nigeria. QIPP will utilise Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power.”

  • Fashola urges Nigerians to embrace solar energy

    Fashola urges Nigerians to embrace solar energy

    Mr Babatunde Fashola, the Minister of Power, Works and Housing, has advised Nigerians to embrace solar energy to reduce pressure on the national grid.

    Fashola gave the advice in Lagos at a book launch.

    The book titled “Solar Electricity Generation for off-grid communities in Nigeria”, was written by Mr Oladele Amoda, the Managing Director, Eko Electricity Distribution Company ( EKEDC ).

    Fashola advised Nigerians to invest in solar energy as solar energy remained energy for the future.

    “Solar energy is very important to reach Nigerians living in various communities that are difficult to reach by the Disco.

    “We are committed to incremental power and policies that will drive the power sector; Solar is one of the renewable energy,” he said.

    The minister, however, allayed fears of Electricity Distribution Companies ( Discos ) over the deployment of more solar power through mini-grids and other Federal Government initiatives aimed at improving service in the power sector.

    He commended Amoda’s initiative in authoring a book that would address power sector challenges, adding that Amoda was outstanding.

    He said that the book presentation was timely as power sector would start to witness dry session by next month

    The minister said that power generation had increased from 2,600 megawatts to 7, 000 megawatts, while power wheeled out was gradually increasing to 7,000 megawatts.

    Prof. Bart Nnaji, a former Minister of Power, commended Amoda for his painstaking research and knowledge input in a book that would address power sector challenges and proffered solutions.

    Nnaji, the Chairman of Geometric Power, said that Amoda had transformed the power sector under his watch as the managing director of Eko disco.

    He said that renewable energy remained a major focus to power sector growth and development in rural communities in Nigeria.

    He urged stakeholders in the power sector to support the minister in developing the sector to deliver desire results in the country.

    “Eko Disco was the best performing Disco during the privatisation era, so, am not suprised that Amoda authored a book.

    “Am not surprised to see an excellent managing director of Disco understood the prospects and challenges of the power sector,” he said.

    Amoda said that the essence of the book was to create awareness on important alternative energy in Nigeria as Nigerians could not continue to depend on the use of fossil fuel that was given environmental issues.

    He said that renewable energy also reduced incessant vandalism synonymous with conventional energy theft in the network.

    NAN

  • ‘Zamfara, FG to generate 30mw electricity from Bakalori Dam’

    ‘Zamfara, FG to generate 30mw electricity from Bakalori Dam’

    The Zamfara Government says it is working in partnership with the Federal Government to generate 30 Megawatts of electricity from the Bakolori Dam.

    Alhaji Lawal M-Liman, the Commissioner for Rural and Community Development, on Wednesday in Gusau, said that the partnership was to boost power supply to the state.

    M-Liman, who is the Chairman of the State Projects Monitoring Committee, said that the partnership was part of issues discussed at the September meeting of the National Council on Power, held in Jos.

    According to him, the federal government has promised to provide technical support under the National Energy Support Programme, for the actualisation of the project.

    “We are already discussing with some power generation firms, to achieve the target,” the commissioner said.

    He also spoke on the state government effort to link more communities to the national grid, saying 100 towns and villages have been connected.

    “You will recall that the Minister of Power, Works and Housing, Mr Babatunde Fashola, visited the state twice when he inaugurated various electrification projects executed by the state government,” he said.

    According to him, the zamfara state government has also reconstructed various federal roads with the agreement that it would get reimbursement of funds spent on the projects from the federal government.

    “When the present administration in the state came on board in 2011, almost all the roads in the state including the state and federal government-owned were in a state of dilapidation.

    “Despite the economic challenges faced by the state, we spent billions of naira to provide the roads including the federal highways in the state, to address the problem of poor roads network.

    “We have achieved a great success in this partnership of road projects, because a large percentage of the roads are almost completed,” M-Liman said.

    NAN

  • Work to resume on Owerri-Aba, Owerri-PH roads

    Work to resume on Owerri-Aba, Owerri-PH roads

    …as Fashola orders contractors back to site 

     

    Respite is in sight for commuters that ply the Owerri/Aba and Owerri/Port Harcourt roads, both trunk A roads, as the Minister of Works, Power and Housing, Babatunde Fashola has directed the contractors handling the roads to return to site immediately. 

    This was disclosed to journalists by the Imo State Governor, Rochas Okorocha, after he hosted the Minister, Tuesday at the Government House.

     The Governor hinted that the contractors have been given a marching order to ensure that the roads are completed without further delay. 

    According to the Imo Governor, “the Honourable Minister for Works, Housing & Power is in Imo State for a short meeting. I have made my concern known to him as regards the neglect in the State, especially with regard to the Aba-Owerri road and Port-Harcourt-Owerri road. And currently, it appears to me that the Minister has done a lot on his part to ensure the completion of those roads”.

    He continued that, “the Minister has also informed me that he has called the contractors concerned to see me immediately with a view to completing the Aba – Owerri road project and Owerri – Port-Harcourt Road projects. We also talked about the issues of power in the State. He has indicated the interest of his Ministry to ensure a stable power supply. We have also discussed about the Federal Housing project which he promised that the issue of land will soon be resolved”.

    The Minister, while briefing Journalists at the end of the meeting with the Governor, said “I have to commend the Governor Okorocha in his effort to lift the quality of life in Imo State and the lofty achievements and programmes he has embarked upon in his Rescue Mission government. We came in for our monthly Power meeting. Some of the issues we discussed were the expansion and distribution network of some of our communities like Nebo, New Heaven, Onitsha, Aba, among others on the power quality and service experience”.

    The Minister remarked further that, “we have grown the generation capacity from 2,696 MW in 2015 to 7,000 MW in September this year. Transmission has also improved from 5,000 – 6,900. We now have a new problem and that is our production capacity has exceeded the distribution company’s wholesale power. So, power currently put on the grid is 4,600MW, Compare that with what we had 3years ago, we have essentially doubled it, but we can do more”.

    According to him “These monthly meetings help us to do local diagnosis to what’s happening in this local Disco. To what is happening in this local communities. Some of these things I have spoken here, I have also addressed the community issues across the country, communities that host power stations without power. We are solving them one after the other”.

    He also informed that, “the governor has also brought my attention to Egbema Power Plant and its challenges. We inform your Excellency that we make progress month by month. We expect that your power experience should be better and how to extend services to places like Nnewi, Ihiala and Okija which are parts of the Enugu distribution franchise. We can’t discuss power in these areas without the inter-state geo-metric power issue. And how to solve it”.

  • No exclusive monopoly in power distribution – Fashola

    No exclusive monopoly in power distribution – Fashola

    Mr Babatunde Fashola, the Minister of Power, Works and Housing, has allayed fears of Electricity Distribution Companies (Discos) over government’s investments in solar energy plants.

    Fasola allayed their fears at the 20th Monthly Power Sector Stakeholders’ Meeting hosted by Enugu Electricity Distribution Company ( EEDC ) in Owerri.

    The minister said that the Discos expressed their fears in a letter to his office about some government’s initiatives on power generation and distribution.

    Fashola said some government’s initiatives which included provision of meters to consumers by meter suppliers, provision of more power to consumers through licensing of eligible customers and promotion of more solar power through mini-grids had prompted the fears of the Discos.

    He said Discos had nothing to fear about solar, stressing that all government’s initiatives were targeted at improving services to the people.

    “It is my understanding that you fear that you will lose some income or some customers if government proceeds and on the question of meters, you seek to have technical compatibility with what the licencee will operate.

    “In respect of possible investment in distribution equipment, you seek that government should route the investment through the Discos.

    “While your concerns about business viability, financial stability and cost recovery are well understood and indeed supported by the Electric Power Sector Perform Act of 2005 ( EPSRA ) which government will respect, I must point out that government’s focus is also strong on the issue of service to the people.

    “As far as the promotion of solar and other sources of independent power are concerned, please note that not only are they supported by the ESPRA, they are consistent with our Paris Climate Change Agreement Obligations and with emerging global practice,” he said.

    The minister said that ESPRA did not contemplate a monopoly for any licensee unless it was expressly stated in the licence.

    Fashola said the monthly meeting was to review the progress made from the last monthly meeting held in Lagos in September and to collectively engage the challenges that lied ahead in the roadmap to incremental, stable and uninterrupted power supply.

    He said that in the last month, the sector recovered 100mw from the damaged Afam IV power plant which had been inoperative since January 2015.

    The minister said that TCN had energised the Jebba-Kainji 2nd 330KV line and the 2nd Ajaokuta-Abuja 330KV line both of which were inoperative since 2015.

    According to him, the Federal Executive Council on Oct. 4 approved the verified sum of N25.9 billion Federal Government MDA debts and its payment by setting it off against debts owed by the Discos to NBET.

    The minister as saying that the sector was also making progress in recovering debts due from international customers.

    He said the sector was equally working to expand the distribution network of the Discos so that they could take additional 2,000 mw of power now available for supply

    Fashola said that debts of ministries, departments and agencies would be paid through their debts to Nigeria Bulk Electricity Trading Company ( NBET ).

    He said that one of the challenges to overcome was how the Discos could quickly increase their capacity to take power and distribute to consumers.

    The minister commended the critical role of the judiciary and the law enforcement agents on the strict enforcement of arbitration clauses in the power sector.

    “We welcome this judicial support to stop corruption in the power sector, enforce the law and promote liquidity in the sector.

    “We also welcome the intervention in the Court of Appeal in the case involving the tariff review,” he said.

    Mr Paul Okeke, the Acting Managing Director of EEDC, commended the minister for his unrelenting efforts to improve the power sector.

    He said EEDC was also committed to the improvement of power supply in the country.

    Okeke also spoke on some progress made by the company, adding that there were ongoing schemes to improve service delivery in the sector.

    NAN

  • Fashola to represent Buhari at Nigeria, Zambia match

    Fashola to represent Buhari at Nigeria, Zambia match

    Mr Babatunde Fashola, the Minister of Power, Works and Housing, will represent President Muhammadu Buhari at Saturday’s 2018 FIFA World Cup qualifying showdown between Nigeria and Zambia in Uyo.

    The Nigeria Football Federation (NFF) made the disclosure in a statement by Ademola Olajire, its spokesman, saying it learnt on Friday morning that Fashola would fly into Akwa Ibom on Saturday.

    He noted that Fashola, a former governor of Lagos State, frequently hosted the grand finale of the Federation Cup (now AITEO Cup) competition and was a notable football enthusiast.

    The NFF spokesman said that top officials had also confirmed that the President of the Senate, Sen. Bukola Saraki, Minister of Youth and Sports, Solomon Dalung would be in attendance.

    “The Chairmen of the Senate and House of Representatives Committees on Sports, Sen. Obinna Ogba and Rep. Goni Bukar Lawan will also be guests at the Godswill Akpabio Stadium.

    “The host, Gov. Udom Emmanuel and members of the Akwa Ibom Cabinet, NOC President Habu Gumel and Members of the NFF Executive Committee and Management will also be present,’’ he said.

    Nigeria is three points ahead of second-placed Zambia going into the penultimate day of the African qualifiers.

    The Super Eagles require only the minimum win against the Chipolopolo on Saturday to join 10 other nations that have already qualified for the 32-team football showpiece in Russia in 2018.

    NAN

  • Sukuk Bond: 10 contractors get N100b for 25 road projects

    Sukuk Bond: 10 contractors get N100b for 25 road projects

    The Federal Government on Thursday presented a cheque of N100 billion to 10 contractors awarded the job to construct and rehabilitate 25 road projects across the country.

    Cost of the road projects funded through the Sukuk bond was shared equally at N16.67 billion among the six geopolitical zones to ensure an equal spread of the project.

    Addressing journalists at the cheque presentation in Abuja, the Minister of Power, Works and Housing, Babatunde Fashola, said the gesture was a fulfilment of his promise to the contractors during the September meeting, to address the funding challenge.

    He described the finance as a sign of hope towards the nation’s economic development.

    The contractors are CGC Nigeria Limited, Arab Contractor Nigeria Limited, CCECC Nigeria Limited, Salini Nigeria Limited, Reynolds Construction Company Nigeria Limited and Setraco Nigeria Limited. Others are Dantata & Sawoe Construction Company Nigeria Limited, Eksiogullari Nigeria Limited, Mothercat Limited and Gitto Constrizion Generali limited.

    Some of the projects included: rehabilitation and reconstruction of Enugu-Port Harcourt dual carriage Section II by Arab contractors at N3,750,000,000; dualisation of Lokoja-Benin road by CGC at N2,500,000,000; dualisation of Kano-Katsina road Phase 1 by CCECC at N3,000,000,000; rehabilitation of Enugu-Port Harcourt road section IV by CCECC at N3,500,000,000; dualisation of Yenegwe road junction-kolo-Otuoke by CCECC at N3,500,000,000 and dualisation of Kano-Maiduguri road by CCECC at the sum of N5,000,000,000.

    Others are: Dualisation of Suleja-Minna road in Niger State by Salini at the sum of N3,521,958,532.49; reconstruction and asphalt overlay of Benin-Ofosu-Ore-Ajebandele- Shagamu dual carriageway by RCC at N6,000,000,000; dualisation of Ibadan-Ilorin road Section II by RCC at the sum of N5,666,666,666.67; rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway Section 1 by Setraco at the sum of N4,000,000,000; Dualisation of Lokoja-Benin road by Dantata & Sawoe Construction Company awarded at the sum of N3,166,666,666.67

    The construction of Kaduna Eastern By-pass in Kaduna state was awarded to Eksiogullari Nigeria Limited at the sum of N4, 666,666,666.67; the dualisation of Kano-Maiduguri road linking Kano-Jigawa-Bauchi-Yobe and Borno States by Mothercat limited at the sum of N3,500,000,000; dualisation of Abuja-Abaji-Lokoja road by Gitto Constrizion Generali limited at the sum of N3,500,000,000 among others.

    In his remark, the Minister of Finance, Mrs Kemi Adeosun said the money would be expended primarily on the road construction projects targeted to open-up opportunities and develop the nation’s economy.

    Describing the bond as first of its type in the country, she said it was about financial inclusion and deepening of the country’s financial sector.

    According to her, the bond was already oversubscribed by investors and other key stakeholders.

    “We are using the money on roads that will open-up potentials of the economy”, Adeosun added.

    The Ministry’s Director of Highway Planning and Development, Engr. Uzor listed the projects based on the order of importance.

    The Financial Advisor, First Bank of Nigeria (FBN) Capital, Mr. Taiwo Okeowo, lauded the federal government for facilitating quick completion of the process.

    The representative of the contractors, Engr. Moussa Nakhla expressed excitement at the development stressing that the contractors would deliver on the projects as expected.

    “Nobody can hide our smiles. We thank the federal government for giving us hope. We believe a lot in this country and we know this country is committed to really helping the people,” Nakhla stated.

  • FEC okays N25.99 billion debt payment to Discos 

    FEC okays N25.99 billion debt payment to Discos 

    The Federal Executive Council (FEC) on Wednesday approved the settlement of N25.99 billion debt owed power Distribution Companies (Discos) by the Federal Government.

    The Minister of Work, Power and Housing, Babatunde Fashola briefed State House correspondences at the end of FEC presided over by President Muhammadu Buhari.

    According to him, the amount, which has been verified was owed by the Federal Government’s Ministries, Departments and Agencies (MDAs).

    He also disclosed that the verification of the amount owed by States and Local governments is still on going.

    Details Later…

  • Fashola seeks support to decongest Lagos traffic

    Fashola seeks support to decongest Lagos traffic

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, has called on importers to utilize Warri and Calabar sea ports to decongest the current traffic challenge in Lagos.

    Fashola, who made the call on Tuesday in Abuja while addressing newsmen, blamed the traffic challenge on the ongoing rehabilitation work on Apapa-Wharf road on congestion.

    He said the reduction of cargo movement through Lagos sea port would reduce traffic on the ever busy Apapa-Wharf road, being rehabilitated.

    “What we can do also is to perhaps, for now, move our cargo to other ports if the content is not to be delivered to Lagos.

    “If the content is to be delivered to the east, the Warri and Calabar ports are there, so, we have all of this access, let us also be very flexible about using them.

    “Our appeal to importers is to also bear in mind that we are constructing a built up area, therefore, their flexibility will help us improve service delivery,” he said.

    Fashola said the ministry was aware of the challenges faced by motorists as a result of the ongoing project but called for patience.

    “Recently, we heard the licensed custom agents complaining about the same road, we hear you loud and clear, we have started work, so bear with us.

    “The construction will cause some discomfort but at the end of the day, if we succeed with what we are doing now and what we plan to do, you will have a better experience this time next year,” he added.

    The minister said the Federal Government was making plans to raise N100 billion from Sukuk fund to finance some road project in Nigeria.

    He said 25 road projects across the six geopolitical zone of the country would be executed with the fund.

    According to him, this is the first ever Sukuk that the Federal Government is issuing, so all we are targeting to raise N100 billion.

    He said the targeted fund would not cover all the roads in the country but noted the 25 roads to be executed with the fund were integral parts of A1 to A4 projects.

    “A1 is the Lagos to Sokoto highway, A2 is Warri to Katsina, A3 is Port Harcourt to Portiskum in Yobe while A4 is Calabar to Maiduguri.

    “One thing is that all these roads are in common, they originate from a point and end at the boundary, so the 25 roads are part of the main four highways,” Fashola said.