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Tag: Minister of Power Works and Housing

  • FEC approves N27.233 billion Gombe-Biu road 

    FEC approves N27.233 billion Gombe-Biu road 

    The Federal Executive Council (FEC) meeting on Wednesday approved N27.233 billion for the construction of the Gombe-Biu road.

    The Minister of Power Works and Housing, Babatunde Fashola disclosed this to State House reporters at the end of the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    He was with the Minister of Information, Lai Mohammed and the Minister of Budget and National Planning, Udoma Udo Udoma.

    According to Fashola, the road will support access to agricultural facilities, power plant and boost personnel movement.

    He however disclosed that the approval did not include the 9 kilometer part of the road already constructed by the state government.

    He said “We presented two documents, one was a Memorandum that required council approval and the other was a note to inform council. They are important because they follow closely and inter- relate with the economy and recovery plan. The first which was a memo was a  contract of the Gombe – Biu Road that connects Gombe State to Borno and also leads to Adamawa and Yobe. The contract was for N 27.23bn for a 117km.

    “The entire road excludes the 9km that had been constructed by the Gombe State government. The strategic importance of the road is undeniable; it supports agriculture, access to our power plants – Dadin Kowa hydro power plants. It also helps security logistics to move personnel and troops to respond to distress calls.

    “It also going to be critical in the resettlement of IDPS. It’s part of the North East Development plan so it ticks all the boxes in terms of development and so on and also as far as budget implementation is concerned, this is one further step in that direction.”

    He said that the other matter has to do with investment in people, security of lives and property, which is the revised Nigeria national  building code.

    He said “This code is 8 years behind its scheduled date and the first code   was delivered in 2006 and it was revised in 2009 and since then it was stalled. Needless to say we have completed and approved the new code at the National Council of housing which the Ministry of power posted in August this year. It is national binding already and just to inform council.

    “The information that is critical is that it first adopts international building code  standards and it also seeks to improve fire protection systems   in buildings, public and private and In this time of harmattan, dry weather, this is the appropriate time to revise this kind of standards and hope that they can quickly kick in and people benefit from them  and we save lives and property.

     

    “It also introduces the energy efficiency and green building methods into our national standards. Recall that the ministry had launched an energy efficiency building code earlier in the year and that has been incorporated as a national building code to ensure that people build more in compliance to global standard.

    “You can position your building in such a way that people use more daylight, conserve energy, install fire heating systems that conserve energy. All of those are details that are aligned in the new Nigeria National building code. More importantly I will like to speak on the provisions that has been made in responding to the needs of people with disabilities, that’s  a very important position in the code now.

    “Provision of hand grills in toilets and washrooms, hand rails in ramps, lifts and ramps in public buildings to do some electro fitting as we go on.provisions that specify the gradients of ramps  and some of the attempts to respond to this are too steep or sharp, responds to the needs of people living  with disabilities so this code also responds to that.”

    According to him, the standard and quality of equipment used in building have also been reviewed.

    “Because when the  Green…tower fire happened in London, we were in the period of finalising this code and that was part of the things we considered ,what lessons we could  learn from their experience where a high rise building suddenly burnt quickly before fire service could respond.

    “In that case we have modified and restricted some of this equipment and materials that can now be used in building in Nigeria in the hope that it will save lives and property.” he said

    The Minister of Budget and National Planning said that FEC approved N458 million for consultancy services on the review of the Economic Recovery and Growth Plan (ERGP).

    He said “Today  the federal executive council approved a memorandum that was brought by the Ministry of budget and National Planning to retain some consultants to help us to conduct some pilot labs .

    “This is part of our implementation strategy for the economic recovery and growth plan and so we intend to conduct three labs- one in agriculture and transportation, one in power and gas and one in manufacturing and processing.

    “The key objectives of the labs are as follows. One to identify all relevant key stakeholders from the public and private sector that are crucial in the  delivery and implementation of the ERGP initiative so as to create ownership early on  in the development process.

    “We will review and re-evaluate the ERGP and sectoral plans against set targets and progress and will include identifying gaps in the current eco system and the key success factors will further deliver detailed  three phase implementation programme line by line implementation activities.

    “We will identify entry point projects, we will identify key performance indicators, breaking down silos and encouraging  key players. Now the focus of the lab is to mobilise private sector investment to finance specific capital projects as you know public resources are limited so these labs will bring in private sector players.

    “We will look at the various areas including infrastructure, manufacturing and bring them in and mobilise private sector financing and resources for the labs.

    “So what council has approved today is that we bring in some consultants who did a similar thing in Malaysia to try to help us build our own capacity, they will just help us at the beginning and after that we will take over and do it ourselves.

    “The cost of retaining the Malaysian consultants will be N458m. It is going to cover about three months, the duration of the lab is expected to last a minimum of 13 weeks. It will cover three phases – pre- lab activities for four weeks, phase two conduction of the labs themselves 6 weeks and Phase three, post lab activities three weeks and you will have for each labs you will have at least a 100 people from a cross section of the public and private sectors so that is the structure of the lab.

    “So there will do the pilot one. Subsequent labs will not be them. They will help us; they will bring their international connections, reach and give it credibility. 500,000 dollars per lab.”

     

  • Niger, Benin Republic pay FG N19billion for electricity

    Niger, Benin Republic pay FG N19billion for electricity

    The Minister of Power Works and Housing, Raji Babatunde Fashola on Monday broke a good news to the Electricity Distribution Companies (DisCos) that the Federal Government has received $64,630,055 (N19,712,166,775) electricity bill payment from the Niger Republic and the Benin Republic.

    According to him, the Nigeria Electricity Bulk Trading Company (NBET) is expected to work out the modalities before onward distribution to the DisCos.

    He spoke at the 21st Monthly Power Sector Ministerial /Stakeholders meeting at the Asaba, Delta State that Benin Electricity Distribution Company (BEDC hosted.

    The minister had earlier commissioned the 215MVA Asaba sub-station transformer, which, he said, will reduce the incidence of load shedding in the area.

    But speaking at the meeting, Fashola said that: “I have some good news for you as well. Some money has come in form the power we sell to Benin Republic and Niger Republic. People wonder why this is so. They are a product of treaties and agreements.

    “They also help our own economy.  So we have a total of $64,630,055 that has been recovered. So, NBET will work out the modality for distribution. And hopefully, by next month, you too, should be able to report that you have received an alert.”

    The minister also announced that the Federal Executive Council had on approved to resolve a meter contract dispute that it entered with a contractor since 2003, but the government’s approval last Thursday resulted in a court settlement which implies that the contractor can now have N37billion plus the interest that accrued over the time for provision of meters to the DisCos.

    Fashola urged the interested DisCos to liaise with the ministry and contractor for the supply of meters to their customers, adding that the deal is strictly between the contractor and the power firm while the ministry is only to make the facilitation with the meter supplier.

    He, however, urged the parties to note that the agreements will reach on meter supply will be subject to the regulation that the Nigerian Electricity Regulatory Commission (NERC) is about to present.

    His words: “But on a progressive note, I am also happy to report that the approval by the Federal Executive Council to resolve a meter contract dispute entered into since 2003, has now culminated in a court settlement that was concluded on Thursday, the 9th of November. 

    “What that means is that that contractor will now have N37billion plus the accrued interest of the money to make meters available to customers of DisCos. They have to work with the DisCos, so, DisCos who are interested in taking this over should contact the ministry, we will make the facilitation formally with the meters supplier. “We expect this to be a bilateral contract between you and them. We don’t want to get involved. We are just going to create a link and a handshake. Some of you are presumably already talking to them to get ready because you know them. 

    “The agreement you will reach with them will be subject to the regulations that is coming from NERC. So those who are concerned about meters as we promised something is being done and we are moving closer to implementation.”

    He revealed to the stakeholders that the Rural Electrification Agency (REA) has completed the guidelines for the operation of the Rural Electrification Fund.

    The minister explained that the fund is to provide partial capital payment (subsidy) rural electricity operators.

    The minister added that ” what the fund seeks to do is to provide a partial capital payment by way of subsidy for technical assistance to eligible private rural power development operators and also to end users for communities for options as hybrid solar and to generally scale up rural access to electricity.”

    He said the fund is to facilitate investment in hybrid mini-grid, solar system and to generally scale up rural access to electricity. 

    The minister noted that those that fund will serve are the unserved rural communities.

    The fund, according to him, will provide a minimum of $10,000 and the maximum amount of $300,000 which 75% of the project cost. 

    He said the REA will publish the guidelines and eligibility criteria in the national newspapers.

    Fashola said that the  Nigeria Electricity Supply Industry (NESI) has been lucky this year benefiting from the availability of water from the hydro and experiencing peace in the Niger Delta for adequate gas supply.

    He promised that even as the rain is receding, there is sufficient gas available for firing the turbines for adequate power supply for the rest of the year.

    Speaking, the Managing Director, Benin Electricity Distribution Company (BEDC), Mrs Funke Osibudo had said that there has been a response of the Federal Government to the theft and vandalism of electricity installation through the Inspector General of Police who has established a special anti-vandal response force in the area of operation.

    She also announced that the company was making progress in the management of load and outage management.

    The Chief Executive Officer said that the BEDC has improved its bill collection method with the introduction of the billing calculator.

  • FG receives N19b electricity payment from Niger, Benin

    FG receives N19b electricity payment from Niger, Benin

    The Minister of Power Works and Housing, Raji Babatunde Fashola Monday broke a good news to the Electricity Distribution Companies (DisCos) that the Federal Government has received $64,630,055 (N19,712,166,775) electricity bill payment from Niger Republic and Benin Republic.

    According to him, the Nigeria Electricity Bulk Trading Company (NBET) is expected to work out the modalities before onward distribution to the DisCos.

    He spoke at the 21st Monthly Power Sector Ministerial /Stakeholders meeting at the Asaba, Delta State that Benin Electricity Distribution Company (BEDC hosted.

    The minister had earlier commissioned the 215MVA Asaba sub-station transformer, which, he said, will reduce incidence of load shedding in the area.

    But speaking in the meeting, Fashola said that: “I have some good news for you as well. Some money has come in form the power we sell to Benin Republic and Niger Republic. People wonder why this is so. They are a product of treaties and agreements.

    “They also help our own economy.  So we have a total of $64,630,055 that has been recovered. So, NBET will work out the modality for distribution. And hopefully by next month, you too, should be able to report that you have received an alert.”

    The minister also announced that the Federal Executive Council had on approved to resolve a meter contract dispute that it entered with a contractor since 2003, but the government’s approval last Thursday resulted in a court settle which implies that the contractor can now have N37billion plus the interest that accrued over the time for provision of meters to the DisCos.

    Fashola urged the interested DisCos to liaise with the ministry and contractor for supply of meters to their customers, adding that the deal is strictly between the contractor and the power firm while the ministry is only to make the facilitation with the meter supplier.

    He however urged the parties to note that the agreements will reach on meter supply will be subject to the regulation that the Nigerian Electricity Regulatory Commission (NERC) is about to present.

    His words: “But on a progressive note, I am also happy to report that the approval by the Federal Executive Council to resolve a meter contract dispute entered into since 2003, has now culminated in a court settlement that was concluded on Thursday, the 9th of November.

    “What that means is that that contractor will now have N37billion plus the accrued interest of the money to make meters available to customers of DisCos. They have to work with the DisCos, so, DisCos who are interested in taking this over should contact the ministry, we will make the facilitation formally with the meters supplier. “We expect this to be bilateral contract between you and them. We don’t want to get involved. We are just going to create a link and a handshake. Some of you are presumably already talking to them to get ready because you know them.

    “The agreement you will reach with them will be subject to the regulations that is coming from NERC. So those who are concerned about meters as we promised something is being done and we are moving closer to implementation.”

    He revealed to the stakeholders that the Rural Electrification Agency (REA) has completed the guidelines for the operation of the Rural Electrification Fund.

    The minister explained that the fund is to provide partial capital payment (subsidy) rural electricity operators.

    The minister added that “what the fund seeks to do is to provide a partial capital payment by way of subsidy for technical assistance to eligible private rural power development operators and also to end use for communities for options as hybrid solar and to generally scale up rural access to electricity.”

    He said the fund is to facilitate investment in hybrid mini-grid, solar system and to generally scale up rural access to electricity.

    The minister noted that those that fund will serve are the unserved rural communities.

    The fund, according to him, will provide a minimum of $10,000 and maximum amount of $300,000 which 75% of the project cost.

    He said the REA will publish the guidelines and eligibility criterial in the national newspapers.

    Fashola said that the Nigeria Electricity Supply Industry (NESI) has been lucky this year benefiting from availability of water from the hydro and experiencing peace in the Niger Delta for adequate gas supply.

    He promised that even as the rain is receding, there is sufficient gas available for firing the turbines for adequate power supply for the rest of the year.

    Speaking, the Managing Director, Benin Electricity Distribution Company (BEDC), Mrs. Funke Osibudo had said that there has been a response of the Federal Government to the theft and vandalism of electricity installation through the Inspector General of Police who has established a special anti-vandal response force in the area of operation.

    She also announced that the company was making progress in the management of load and outage management.

    The Chief Executive Officer said that the BEDC has improved its bill collection method with the introduction of the billing calculator.

  • Gencos yet to access N701b power loan – Ogaji

    Gencos yet to access N701b power loan – Ogaji

    • Generating firms record N893b revenue shortfall

    The Electricity Generation Companies otherwise known as (GenCos) are yet to access the power sector N701billion assurance guarantee funds, owing to their inability to meet the Federal Government conditions for it, it was learnt on Monday. 

    The Executive Secretary, Association of Power Generation Companies (APGC), Mrs. Joy Ogaji told The Nation in her Abuja office that the Central Bank of Nigeria (CBN) has put a snag of about 10 conditions precedent to accessing the funds which none of the the power generating firms had met. 

    She said that: “Well, to the best of my knowledge, the fund has not been accessed, and as at today (Monday) this morning, they have not yet met the conditions, we call it conditions precedents (CPs) which the CBN gave them to meet. 

    “They are about 10 CPs and they have not met them. And until they meet them, CBN said they cannot release the money.”

    The Minister of Power Works and Housing, Babatunde Fashola had on August 14, in the last power sector meeting in Kano State announced that some of the policies, programmees, actions which have started taking effect include payment of assurance guarantee of N701 billion.

    But Ogaji noted that the federal government placed the conditions after conducting its due diligence prior to the approval of the Federal Executive Council (FEC).

    Responding to the Minister of Power Works and Housing, Babatunde Fashola’s announcement that any GenCo could invest in meeting, she said the most important thing is to put the right framework for the investors to recoup their money. 

    According to her, from  2013 that the GenCos took over the companies to September 2017, they have recorded a cumulative shortfall from N893billion.

    She explained that “the GenCos have a lot of money at stake in the sector. From 2013 to 2016, were are being owed over N650billion . Then January this year to September if you check an invoice shortfall of about N27billion, you know exactly how much we are owed.”

    Ogaji said that gas is not a major challenge to power generation at the moment, adding that most of the stations have gas waiting to generate power but the transmission networks are too weak to take extra power. 

    The Nigerian Electricity Regulatory Commission (NERC), according to her, has just invited the GenCos to a consultative forum on eligible customers that would hold in the six geo-political zones starting on Wednesday in Lagos.  

    All the GenCos have cordial relationships with their host communities where the plants are sited. However, once we are in the raining seasons the hydros have overflowing dams and because the network is preventing them from generating to optimum capacity there is a possibility of water spillage which will affect the communities . I am aware of some communities complaining that the spillage is affecting them. As you know flood is been around everywhere not only in Nigeria. So, the government needs to focus more in the network so that we can generate at optimum capacity and prevent such spillages. There is a community close to Kainji but I don’t know the name.”

  • FEC okays N20.6 billion for road contracts

    FEC okays N20.6 billion for road contracts

    …Approves policy for technology acquisition

     

    The Federal Executive Council (FEC) on Wednesday approved N20.6 billion for road contracts in Plateau and Kwara states.

    The Minister of Power, Works and Housing, Babatunde Fashola, briefed State House correspondents at the end of the FEC meeting chaired by Acting President Yemi Osinbajo at the Presidential Villa, Abuja.

    He was with the Minister of Information, Lai Mohammed, Minister of Trade and Investment, Okechukwu Enelamah and the Minister of Science and Technology, Ogbonnaya Onu.

    The two roads, he said, are N10.4 billion for the reconstruction of Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state and N10.2 billion for reconstruction of Sharre-Patigi road in Kwara state.

    He said “The ministry presented two memoranda to the council. The first was to with respect for approval to construct the Pankshin-Balank-Yalen-Salak-Gindiri road in Plateau state for N10.46billion.

    “The second one is the Sharre-Patigi road in Kwara for N10.2 billion; both prayers were approved by the council.

    “The other memorandum was in respect to inherited liabilities from the old power ministry where a judgment of N119 billion had been signed against the Federal Government as a result of acts of officials of government who varied the presidential approval without seeking further directive from him and then awarded the contract on that basis.

    “So the party who was the beneficiary of that contract which they subsequently sought to withdraw went to court and got a judgment,” he said.

    Onu said that the Council approved a policy to encourage technological advancement in Nigeria.

    The initiative, he said, will help Nigerian firms to produce what the country needs as it will boost foreign investment in Science, Technology and Engineering from where local content could be developed.

    Through the policy, he said that technology transfer will be facilitated with more taxes to be paid to government, and wealth creation for the country and people.

    “The Federal Executive Council in its deliberations approved a policy that will help us to change the direction that we have been taking as a nation, a direction that will be very useful in helping us to start looking inwards to produce the things that we need as against depending on other outside people to import our requirements.

    “Some of the highlights will involve for example where we have bulk purchases of major items that we are bringing into the country that those who normally would have supplied from outside the country will now come to Nigeria to establish their factories to produce in Nigeria.

    “By doing so they will offer job opportunities to our people, tax will be paid to government so wealth will be created but most importantly Nigeria will now acquire the necessary technology that will help us to build capacity.’’

    Onu said that FEC agreed that henceforth whoever wanted to practice any profession, in Engineering, Science and Technology, Medicine, Accountancy, Quantity Surveyors and others must be certified by appropriate professional bodies in Nigeria.

    He said the measure was very important in building the nation’s local capacity adding that there were so many areas that the fiscal policy had covered.

    According to him the aim is that in the next 10 years Nigerian firms shall be in a position to carry out very complex jobs, especially the ones that they do not currently have the expertise to do.

    He said the country would for now rely on foreign companies for such jobs but when they arrive they have to work with Nigerian firms who would understudy them from project conception to inauguration.

    The minister stated that it was the only way that the country could acquire the necessary technology to build our local capacity hoping that in 20 years Nigerian firms should be competing with the best in the world.

    He said FEC has accepted to declare a state of emergency on Science and Technology because the Economic Recovery and Growth Plan 2017 to 2020 recognised the cardinal place of science and technology in driving the recovery and growth plan.

    “We are not looking for transfer of technology because we know it would not happen; what we are looking for is acquisition of technology and we are interested in building our own capacity.

    “We are convinced that we can do this and we believe that with the new policy we will be in a position to acquire technology,’’ he stated.

    Onu noted that the country could train professionals using the foreign professionals adding that the Ministry of Interior would be involved to ensure creation of a new classification in the immigration policy in that regard.

    He also said that the ministry of foreign affairs would help the country to improve its free visa status ranking from the present 92 position.

    He described the position as very low as it allowed Nigerians to enter only 45 countries on free visa.

    He said this was a difficult journey but would take Nigeria to where it should be in the committee of nations.

    Onu added that the approval had not been done since the country became independent and added that in project design the country would insist that all the language would be in English rather than any other foreign language.

    He noted that with the movement of other nations toward solar and other means of technology outside oil the country should be preparing for a post-crude oil era.

    Enelamah said that FEC approved a memorandum that was presented to amend the list of pioneer industries and products that will enjoy pioneer status going
    forward.

    This, according to him, is line with the ease of doing business policy of government.

    He said “As many of you know the pioneer incentive scheme is governed by ye Industrial Development Income Tax Relief Act and the whole purpose is to give tax holidays to industries we consider pioneer. Pioneer doesn’t mean that they are new it only means that they are not yet mature, we want those industries to grow.

    “We want to attract investment in them and you will find that this covers a wide range of industries and those tax holidays ranges from 3-5years. The pioneer list was last reviewed by the Federal Executive Council in 2006, so you could see that this was long overdue.

    “On doing the review, special attention was paid to the ERGP to capture the current realities that will help to implement the plan to make sure we attract the kind of investment, industries and players that will help to implement and realize our objectives in the ERGP.

    “I should also point out that there was multi stakeholder engagement, private and public sector in arriving at the industries that will be included in the pioneer incentive scheme.

    “In terms of the recommendations approved by FEC today: we have tried to remove all ambiguities in the definition of industries by reclassifying industries according to the international standard in industrial classification which is the global standard which is also the standard that is used by the Nigeria Bureau of Statistics.

    “The other thing we also did is to agree that the pioneer list will be reviewed regularly every two years, biannually so that just that if things come up, we live in a fast changing world and we are being responsive to our world. In the case of additions to the list they will be effected immediately, for deletion of industries that we consider mature there will be a three year window that will be allowed for those that are already investing in that industry that were enjoying pioneer status to carry on till the end of that three year period.

    “Against this backdrop, we then approved 27 industries that were recommended for addition to the pioneer list today. We also recommended and it was accepted by the Council that mineral oil prospecting which is governed by the Petroleum Profit Tax should not be part of the pioneer industries list which is really industries governed by the Companies Income Tax Act.

    “It was also accepted that given the success we have achieved in cement which are now net exporters, maybe that is an industry which we could say that we are now where we want to be in terms of maturity even though there is still a lot of scope for the application and the use of cement and you know that will continue. We already have critical mass in cement.

    “The scheme will ensure that will not deprive us of revenue. It is an incentive to make people enter your market, new enter industries, invest more for people who are already here. It will increase our tax base over time,” he stated.

     

  • Fashola to intervene in alleged inflation of Gencos’ invoice

    Fashola to intervene in alleged inflation of Gencos’ invoice

    The Minister of Power Works and Housing, Babatunde Fashola will dig into the allegation that the Nigerian Electricity Bulk Trading (NBET) Plc was inflating electricity invoice in favour of the Electricity Generation Companies (Gencos), it was learned on Monday.

    According to the Executive Secretary, Association of Power Generating Companies (APGC) Barrister Joy Ogaji, who revealed this in a statement on Monday, the allegation gives the impression that the power sector operators are uncontrollable.

    The statement came nearly a month after which The Nation broke the story of June 27 that the NBET was inflating electricity invoice in favour of the Gencos.

    She accused the Electricity Distribution Companies (DisCos) being responsible for the rumour that the power producers under the watch of Fashola, were involved in sharp practices.

    She noted that the power producers, who are entitled to 60% of the invoiced energy bill that are facing an outstanding debt of N500 billion deserve pity instead of ridicule.

    Ogaji condemned the position of the DisCos on the removal of capacity charge, stressing that, there is nowhere in the world where power generating companies are paid only for energy.

    The statement reads: “Relative to the news trending in the sector that Gencos are fraudulent and are conniving with NBET to inflate their monthly invoices, we wish to state here that we are not aware of any such practice, although we hold no brief for NBET whom we expect should respond to this allegation as soon as possible.

    “We are not sure what could have led to this allegation but since it is been perpetrated by the DisCos, they should make public the evidential proof of this allegation immediately, as it is said in law “He who asserts must prove”.

    This allegation will be escalated to the Minister of Power, Works and Housing, who as the leader of the sector is expected to intervene and deal with the issues as appropriate.

    “It is a fact that GenCos, who are entitled to about 60% of invoiced energy bills, face the greatest risk in the electricity value chain with an outstanding unpaid invoice of over five hundred billion (N500bn) naira deserve pity rather than ridicule. Trying to smear our image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated, and that market participants can do as they please.

    “On the issue of calling for the removal of capacity charge from GenCos payments, we want to put on record that this call has been borne out of sheer ignorance of how the electricity market works. There is no place in the World where a generation company is paid only on energy. Projects will have to be privately financed, supported by non-recourse or limited recourse loans, with long-term agreements financed by the Electricity Market.

    “Capacity payment is needed in order to guarantee energy supplies and to keep the prices as low as possible. Without a capacity payment system, new investments in power plants will come to a standstill. It incentivises the Gencos to make capacity available when it is needed most.

    “Amongst other things, the MYTO is based on benchmarks on projections of the available capacity of energy to be sold in the market; the cost of gas and other feedstock; and the prediction of inflation and foreign exchange. The MYTO tariff methodology was developed in consultation with industry stakeholders, labour groups and consumer groups.

    “MYTO is supposed to provide a correct pricing of electricity, taking into consideration the key principles of cost reflectivity, affordability of electricity tariffs, and incentives for efficient operations. The MYTO methodology sets tariffs for the key electricity sectors players, namely – Generation, Transmission and Distribution, based on certain key assumptions and inputs.

    “Generation companies are paid based on their negotiated Power Purchase Agreements (PPA) and hence are not unilaterally determined. All negotiated PPAs are approved by NERC after ensuring that such cost is prudently incurred before it is sent to NBET to make payments.

    “We make bold to state here that, contrary to the allegation by the DisCos of inflated GenCo invoices in cahoots with NBET, no sector participant has any overriding powers to negotiate inflated invoice payments.

    “We also expect that only adequately researched and verified information be published by players in the sector and not a propagandist and misleading information which we believe are distractive tactics. GenCos take exception to being used as a weapon for such dirty politics.”

  • AEDC to distribute more power with new transmission station

    AEDC to distribute more power with new transmission station

    With the commissioning of the Kukuaba Transmission Station, the Abuja Electricity Distribution Company (AEDC) on Tuesday said that it is now reinforced and better positioned to serve its customers better.

    Speaking at the ceremony in Abuja, where the Minister of Power, Works and Housing, Babatunde Fashola, who was represented by the Permanent Secretary, Engr. Louis Edozien, the Managing Director of AEDC, Engr. Ernest Mupwaya explained that the company can now distribute power directly to Lugbe and its environs. 

    This, according to him, is that the line from where the consumers are now getting their power is nearby. 

    “Those who are being served from Katampe in Gwarimpa, Life Camp, Mabuchi, Maitama, Wuse II, Jahi and others will also enjoy improved supply. This is so because it has now been freed of the power it was releasing to Lugbe. In the long time, we will have the capacity to take more electricity,” he said.

    According to him, the firm has reinforced 4,048 sub-stations in its network through maintenance services while surveying the protection system of 68 others.

    Speaking earlier at the opening session of the 17th Power Sector Meeting in Abuja, he said the reinforcement was to boost power supply and enhance health and safety in its operational environment.

    The AEDC boss noted the improvement in the power sector saying, “the usual discussions in the past about power deficit is gradually giving way to discussions about increased power not being utilised. This is further supported by the rate at which incremental generation is being commissioned in the industry.”

    He noted that commissioning the 132/33Kva Kukuaba transmission sub-station by the federal government shortly after the meeting would boost power supply directly in Lugbe area of the Federal Capital Territory (FCT).

    “The majority of customers in Abuja City such as Maitama, Wuse II, Gwarinpa and Mpape will also benefit from improved supply because of the freed capacity in the Katampe transmission substation,” Mupwaya added.

    Reeling out other achievements of the Distribution Company (DisCo) since it was privatised in 2013, he said: “We have completed Large Power Users (LPU) metering of 3,885 customers by February 2017; flagged off metering of Small Power Users (SPU) in December 2016 and close to 90,000 are metered so far.”

    AEDC said it has improved the organisational design, corporate governance and compliance, and improved training for its personnel.

    The Permanent Secretary in the Ministry of Power, Engr. Louis Edozien who chaired the meeting said the ministry has rolled out policy directives to address the limitation of 33Kv and 11Kv distribution infrastructures across the DisCos to solve the issues of power underutilisation often tagged as load rejection.

    Edozien urged the DisCos not to feel threatened by the recent ‘Eligible Customer’ pronouncement that will allow certain customers to buy power directly from the Generation Companies (GenCos). He said the declaration will strengthen their services and improve revenue base to tackle the liquidity crisis in the sector.

    He also revealed that the Market Operator and the Nigeria Bulk Electricity Trading Plc (NBET) are in the process of restructuring the bulk energy debts owed by DisCos to help them raise financing while improving their services to customers.

  • 2017 Budget: Fashola replies NASS, decries resort to name-calling

    2017 Budget: Fashola replies NASS, decries resort to name-calling

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, has expressed concern over the reaction of the National Assembly to his observations on the 2017 Budget as passed by the legislature.

    Fashola had in a recent interview, complained that the legislators had in approving the budget, reduced funds for some key projects of his ministry and allocated the money to some frivolous ones.

    He had disagreed with the practice where the legislature unilaterally altered the budget after putting members of the Executive through budget defence sessions and committee hearings.

    According to him, it amounted to a waste of tax-payers money and unnecessary distortion of orderly planning, for the lawmakers to unilaterally insert items not under the exclusive or concurrent lists.

    Specifically, Fashola had said that the lawmakers altered the budgetary allocations for rehabilitation of Lagos-Ibadan Expressway, the Bodo-Bonny road and the Kano-Maiduguri road.

    Other projects whose funds were tampered with the national assembly, he alleged, were the second Niger Bridge and the long-drawn Mambilla Hydropower project.

    He said the allocations were diverted to construction of scores of boreholes and primary health care centres, which were never discussed during the ministerial budget defence at the parliament.

    But the spokespersons of the Senate and the House of Representatives, in separate responses, had accused the minister of spreading “half-truths” and making “fallacious’’ statements.

    They accused the minister of wanting to hold on to the projects he complained about in order that he may continue to award contracts.

    In a statement on Monday in Abuja, Fashola said it was sad that the lawmakers could resort to name-calling even without understanding the facts of what they were getting into.

    He insisted that there was no subsisting concession agreement on the Lagos–Ibadan expressway as alleged by the national assembly.

    He explained that what the Infrastructure Concession Regulatory Commission (ICRC) had was a financing agreement from a consortium of banks, saying that there was no fallacy or half-truth in the allegation that the budgets were reduced.

    “The spokespersons admitted this much and now sought to rationalise it by a concession or financing arrangement that has failed to build the road since 2006.

    “The biggest momentum seen on the road was in 2016,” the minister said.

    On the second Niger Bridge, whose 2016 allocation, the lawmakers claimed, was not spent and had to be returned, Fashola said, “this displays very stark and worrisome gaps in knowledge of the spokesperson about the budget process he was addressing.’’

    According to him, a budget is just an approval of estimates of expenditure to be financed by cash from the Ministry of Finance.

    He said that the Ministry of Finance did not yet release any cash for the 2nd Niger Bridge and that no money was returned.

    The minister said that the continuation of early works could not start in May, 2016 when the budget was passed because of high water level in the River Niger.

    He also dismissed the allegation that the ministry under him was holding on to projects that could be funded through Public-Private-Partnership (PPP) as a tissue of lies.

    On the budget for Mambila Power Project, which was slashed because it contained a whopping N17 billion for Environmental Impact Assessment (EIA), the minister said that there was indeed a “mis-description’’ of the expenditure.

    According to him, what was described as a Budget Head for EIA was actually the nation’s counterpart funding to the China- EXIM loan to fund the building of the project.

    He said that the information on the budget for Mambilla project was brought to his attention only after it had been slashed.

    “In any event, allegations of half-truths are only a flawed response to the constitutional and developmental issues that have plagued Nigeria from 1999 about how to budget for the critical infrastructure in Nigeria.

    “It shows the conflict between the Executive that wants to build big federal highways, bridges, power plants, rail and dams on one hand and a Parliament that wants to do small things.

    “The parliament wants to do things like boreholes, health centres, street lights and supplying grinding machines,” he said.

    “As long as budgets, planned to deliver life-changing infrastructure, are cut into small pieces, Nigeria will continue to have small projects that are not life-changing and big projects that have not been completed in 17 years.

    “If a project would cost N15 billion and the contractor gets only a fraction of that, then things won’t move.

    “Success should be defined by how many projects an administration is able to complete or set on the path of irreversible completion and not how many poorly funded contracts are awarded,” Fashola added.

     

  • Fashola challenges CORBON to end building collapse

    Fashola challenges CORBON to end building collapse

    …Says collapse has reached embarrassing proportion

    The Minister of Power Works and Housing, Babatunde Fashola Thursday challenged the Council of Registered Builders of Nigeria (CORBON) to end incessant building collapse in the country.

    Fashola said during the council’s 15th induction ceremony, held in Abuja that the situation had reached an embarrassing proportion, thus needed a complete overhaul.

    He stated that since the Council was vested with the mandate to determine what standard of knowledge and skills necessary to practice, CORBON should be responsible to regulate and control the practice of the building profession.

    Fashola said: “There is no doubt that the Nigerian construction industry has grown in size and complexity, and indeed recorded giant strides in national development. However, it is sad to note that cases of shoddy works and defective buildings still traverse the landscape, and this has become a plague agitating the minds of Nigerians.

    “In worst case scenarios, these have led to the collapse of buildings, loss of lives and investments. It must. Be admitted that building collapse is not limited to Nigeria alone or the developing economies, but the scope and frequency of the menace is our country has reached quite embarrassing proportions.”

    However, he challenged the council to develop for implementation, effective strategies and framework including benchmarks to ensure the project quality management plan of building in the country is rightly applied.

    In his remark, the Chairman of CORBON, Prof. Bala Kabir admitted that the built industry had over the years bedevilled with challenges of poor quality delivery and incessant building collapses.

    He said this had resulted to loss of lives, properties with huge economic losses.

    However, Kabir restated mandate of the council to include the establishment and implementation of academic building standards as well as practice.

    He added that CORBON is charged to regulate the activities of builders through registration and issuing of licenses.

    “We accredit educational institutions, programs for training of builders and discipline registered and license holders,” he said.

    The Guest Speaker, Prof. Akin Akindoyeni urged the National Assembly to strengthen the council through legislative frameworks to end quackery and building collapse in the country.

    Akindoyeni noted that except CORBON is empowered, it may be difficult to stop the menace.

    According to him, prospective house owners should as well endeavour to engage experts in the sector before commencing any building ‎project.

    “Nigerians too are not helping matters. Some people give housing projects to quacks and buy substandard materials. So if any ‎collapse happen, the blame goes to the builders,” he added.

     

  • Fashola to stakeholders: Let’s work together to develop Niger Delta

    Fashola to stakeholders: Let’s work together to develop Niger Delta

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has challenged all stakeholders from the Niger Delta to close their ranks and work with the Federal Government to develop the region.

    Fashola, who visited Bayelsa State at the weekend, about a week after Acting President Yemi Osinbajo, led a delegation to the state and unveiled a new vision for the region, said everybody must work hard to change the negative conversation around the Niger Delta.

    The former Governor of Lagos State, said the current administration was sincerely determined to drive policies, projects and programmes that would develop the region.

    Fashola and his team inspected some federal road projects in the state, including the Okarki-Yenigwe-Kolo road, leading to Ogbia, former President Goodluck Jonathan’s local government and the popular East-West road.

    He called on Niger Delta governors to synergise and ‘step up’ their collaboration with the federal government to change the face of the Niger Delta.

    He acknowledged that the government at the centre “has not had as much impact as it should in the region”, but promised that the current government was working hard to change the narratives.

    He said: “I understand the challenges of building in the creeks and the swamps that’s how my state is like. It’s difficult terrain. We all need to get our hands in the plough here.

    “I see that the presence of the federal government has not been as impactful as it should have been over the years , especially in terms of infrastructure across the delta, not just in Bayelsa.

    “But we can only do that by collaboration, by peace and partnership. Not only does the governor and I have our work cut out for us, but the governors and his colleagues in the South-South must step up now and change the conversation around this place.

    “This place has great potential. It can create jobs for the youths of Nigeria. From gas and other by-products , creating industry and life defining infrastructure, connecting the sea. These are places where you can do alot of tourism. The possibilities are endless. But we need to shake hands and that is why we are here”.

    He said having inspected the East-West Road which is under the Ministry of the Niger Delta and the Niger Delta Development Commission (NDDC), his ministry would play some roles to complete the road.

    He lamented that contractors left sites of various projects in the area including the East-West Road at a period the country experienced prosperity in resources.

    But he said the Federal Government would ensure the contractors retire to sites as a means of getting the country pit of recession.

    “We have been through the east west road which is a federal road although it is under the Niger Delta ministry through the NDDC, but there’s a lot we can do in terms of collaboration to complete this road.

    “We need to collaborate to complete these roads, or from project to project. The contractors left site.

    “Unfortunately, this happened in a period of relative prosperity in terms of resources coming in, but this government is determined that whatever the case, the infrastructure represent the way out of recession.

    “Finishing them means getting contractors back to work, those living in those localities to have opportunities to get engaged and employed.

    “And also connecting those facilities which will make it easier to transverse between Bayelsa and Rivers and to other states, not only in the south south , but also in the South East.

    “I have spoken to the contractor and I have charged them to come back to site. We will take control of the project in a much more different way such that there is a more generous provision for the work that is going on rather than registering.

    “This is a matter where your brothers, colleagues and representatives in the Senate and House of Representatives should help to make the budgeting process more flexible. And this will change the way we budget”, he said.

    Fashola further attributed the problem with the Gbarain Power Plant to lack gas supply to the gas pipelines, adding that some of the pipelines were shut while others were broken.

    He said the Gbarain plant was off the greed till about two weeks ago when the country started receiving power from there.

    He said: “These are problems we are solving and the strategic importance of the gas assets the states of the Niger Delta and the Niger Delta itself cannot be understated.

    “We need to find peace here very quickly and the story must change. This is one of the reasons we have come here to see if what is being reported about this place is true and this is not a place where the story suggests you can’t work.

    But we need to get more ambassadors who will say ‘I work here, I live here. This place is safe’. And that’s what encourages people to come out and address the infrastructure work that needs to be done here.

    “The collaboration that the governor spoke about in producing more energy from gas is something that I intended to take up”.

    Earlier, the Governor of the state, Mr. Seriake Dickson, called for more collaborations between the stage and the Federal Government.

    Dickson said despite the strategic importance of Bayelsa, the government at the centre had abandoned the state.

    He said the state was sitting on gas and appealed to the government to partner with the state to explore the gas and generate electricity for the country.

    Dickson said: “Bayelsa is the centre of gravity. The story of Nigeria’s oil started just about ten minutes from here. Untill you visit Bayelsa, you haven’t visited Niger Delta”.

    The governor lamented the challenges of development confronting the state because of its terrain and most of the projects required support from the federal government.

    Addressing Fashola, he said: “Your appointment has given a lot of people hope. And we are very hopeful that with you in these critical ministries, it’s in the hands of someone we have confidence in and has capacity to deliver.

    “These ministries are critical areas that we want to collaborate with the Federal Government. Your ministry and federal government have very little footprint in terms of road construction.

    “The road you said you went to inspect, we have talked about these roads for several years for even as old as Nigeria is. Now you have seen where it is”.

    Dickson said the three senatorial roads and the Agge Deep Seaport were more critical projects that required federal government’s support.

    “A road from Nembe to Brass is like building the third mainland bridge. Some of the raids we call roads here are actually bridges because the whole of Bayelsa is below sea level. So the cost of construction is twenty times what you have in other areas.

    “We are available for collaboration. We can’t handle it alone. These roads are too expensive. Our country unfortunately has left this part of Nigeria behind. Nigeria left Bayelsa and the Niger Delta behind. No road to Brass , yet crude is lifted daily there the same for Forcados”.