Tag: Works and Housing

  • Fashola, Ajimobi, UI VC make case for renewable energy

    Fashola, Ajimobi, UI VC make case for renewable energy

    Minister of Power, Works and Housing, Raji Fashola has warned that for renewable energy to develop in the Country and particularly in the country, the government must give similar priority to renewable energy as conventional power plants to maintain a balanced energy ix in the short, medium and long-term.

    Pointing out that renewable energy are the fastest power plants that can be deployed as the technologies required are compatible with what he described as the nations decentralized, stand-alone ideal for local, rural communities, the former governor of Lagos state stressed that efforts, however, must be intensified at improving the transmission grid.

    The Minister spoke while giving a keynote address at the Renewable Energy Conference, organized by the Centre for Petroleum, Energy Economics and Law (CPEEL), University of Ibadan with the theme: “Developing Renewable Energy in Africa: The Interplay of Technology, Economics and Law.”

    The 2day CPEEL-ANSOLE annual international conference which attracted experts, scholars, students and participants from different African countries held at the Premier Hotel, Mokola Hill, Ibadan.

    Speaking through the Acting Director, Renewable and Rural Power Access Development, Federal Ministry of Power, Works and Housing, Faruk Yabo, Fashola noted that “the huge energy deficit and the negative environmental impact of using fossil fuel for energy generation, as well as the falling costs of renewable energy technologies like solar power, are driving the current energy transition towards renewable energy as being witnessed across the world, including here in Africa.”

    He lamented that despite Africans trillions standard cubic feet (SCFs) of natural gas reserves, billions of barrels of crude oil reserves, billions of tonnes of coal and even greater abundance of renewable energy resources, “nearly 1.5 billion people estimated to lack electricity supply the world over, half lived in Africa” with Nigeria alone estimated to have 90 million people living without electricity supply.

    As parts of the implementation of the power sector recovery programme, the Minister said that the “Federal government is implementing off-grid renewable energy solutions such as rural mini-grids, standalone home solutions, IPP for Federal Universities, Teaching Hospitals and large-scale solar PV projects such as the Jigawa solar city.

    He said, “In 2018 we are making efforts to complete and commission the following renewable energy projects: 10 MW Katsina wind farm, 30MW Gurara Hydro Power, 29MW Dadin Kowa Hydropower and 40MW Kashimbila HydroPower, 700MW Zungeru Hydro Power and the 14 Solar IPP are expected to come on stream soon.”

    In a short remark before declaring the conference opening, Oyo State Governor Abiola Ajimobi noted that “the good Lord has blessed us with abundant diverse natural resources that are continuously replenished continuously. But we need the policy to encourage investors in developing the technology for Africa and to also embolden financials to allocate huge funds to renewable energy development in Africa.

    “The outlook of us as policymakers, researchers and investors is a strategic partnership that will result to increase in the contribution of renewable energy generation in Nigeria and Africa as a whole, in a way that will make it attractive, accessible and affordable to the general public.”

    Ajimobi who was represented by his Chief of Staff, Dr. Gbade Ojo charged all the participants to “enlighten policymakers on the significant opportunities in renewable energy, which includes but not limited to energy efficiency, energy security, reduction in environmental pollution especially air pollution and improve public healthcare and one must not forget economic benefits to the users and the government.”

    Vice Chancellor, UI, Prof. Idowu Olayinka said the conference and the theme is very relevant and important at this critical period, given the current energy challenges adding that the “significance is not just for the town but also for the gown as the University spends very considerable amount of money to ensure stable electricity supply that can support research, training and other activities on campus that will impact the nation and the world positively.

    He appeals to the FG through the minister to revisit the pledge of a support to build a 10MW solar plant in collaboration with Germany about two years ago, noting that the project has not made any significant progress since it was launched.

    “I will like to remind the Hon. Minister that about two years ago, the Federal Government made a pledge of support to build a 10MW Solar Plant in collaboration with the German for the University. While other universities have been included in the scheme, the University of Ibadan is yet to record any progress on the plant.

    “I want to use this opportunity to appeal to the Hon. Minister and the Rural Electrification Agency to revisit the project given that the successful completion will further aid research and training activities in the University as we all work very hard to make UI the best among the rest”, the VC appealed.

    Earlier, the director, CPEEL, Prof. Adeola Adenikiju in his welcome address said the objectives of organizing the conference, which was the third in the series was, “to bring together senior policymakers, industry experts and academics to discuss current energy issues that are relevant to the 20 countries in the Gulf of Guinea region; to address energy challenges in a multidisciplinary framework as well as to encourage the sharing of experiences among the countries in the sub-region and from other parts of the world in order to learn best practices from each other.

    Read Also: Fashola: Fed Govt will repair its roads in Ekiti

  • Govt urges enumeration of electricity consumers

    The Nigerian Electricity Supply Industry (NESI) needs to embark on the enumeration of electricity consumers, the Minister of Power, Works and Housing, Babatunde Fashola has said.

    He said the electricity market lacks the knowledge of how much, or how many people are utilising the power since some customers bear the burden of paying for stolen energy owing to lack of meters for billing consumption.

    Fashola called for social justice between the consumers and the service providers, urging whistleblowers to assist the NESI with intelligence on energy theft that could lead to the arrest of the thieves.

    The minster who spoke at a workshop for the Civil Societies Organizations (CSOs) on the Power Sector Reform Programme in Abuja, blamed the commercial losses of the Distribution Companies (DisCos) on energy theft.

    “Energy theft is the cause, if you sell the product and you don’t collect the money, that business is in danger. So, in my opinion, we need to know how many people are using the electricity. We don’t know.  So, some people are paying for what others are using and we need meters to achieve justice between consumers and service providers.

    “This is a place we need a lot of whistleblowing, if you know anybody who is stealing energy, call us so we will come and pick the person. So that he will stop being a problem to his community,” Fashola said.

    Some of the CSOs had lamented that the ministry was only considering the commercial losses of the DisCos, yet reticent about customers and communities that have also become investors, providing electricity cables, transformers and other equipment to the companies, who also charge them exorbitant estimated bills.

    Fashola asked the Nigeria Electricity Regulatory Commission (NERC) to respond to the CSOs position.

    Reacting, the Commissioner on Consumer Affairs, Dr. Moses Arigu, said the due process for community to follow to procure equipment as transformers for the DisCos, is to start from informing the DisCo, the Nigerian Electricity Management Service Agency to arrange and ensure the standard of the transformer prior to its procurement.

    He said: “The money is supposed to be refunded. Again, you have to work it out with the DisCo and that is not physical cash, but through energy crediting. So it is not that when we invest why should they send a bill again?

    Fashola said the final consultative forum for the metering regulation was held in Lagos on Monday and Tuesday. The document, according to him, will solve problems of estimated billings.

    The Power Sector Recovery Programme Components aims at the definition of a “tariff adjustment trajectory, so that tariffs cover the revenue requirement of efficient service provision by 2021.

  • Apapa-Wharf Road reconstruction only 10% completed

    Apapa-Wharf Road reconstruction only 10% completed

    The Apapa-Wharf Road reconstruction in Lagos State has achieved only 10 per cent completion, an official of the Federal Ministry of Power, Works and Housing ( FMPWH ), has said.

    Mrs Olukorede Keisha, an FMPWH engineer supervising the project, said on Tuesday at the project site that presence of gas pipes and other public utilities in the road’s Right of Way ( RoW ) delayed the project execution.

    The engineer said that the contractors handling the project had, however, resolved the problem.

    Keisha said that 200 metres of concrete road and 230 metres of drains had been constructed on section one of the project.

    “The project is about 10 per cent completed; we finished 230 metres of drain and 200 metres of concrete road on section one.

    “We have about four layers of road to make the pavement rigid; the road thickness is 600mm,’’ she said.

    She said that the project had four sections.

    Keisha told NAN that a design alteration was done to take care of the gas pipelines in the RoW of the road so as to meet the completion date of June 2018.

    “There is no need to relocate the pipelines again; the pipes are encased. We had to redesign in order to safeguard the pipes for work to continue.

    “It is a shift in alignment, we shifted it forward,’’ she said.

    She said that the redesign gave the opportunity for deep excavation to lay a solid foundation for a durable concrete road.

    On potholes on some portions of the highway, Keisha said that rehabilitation work had begun on the bad portions.

    According to Keisha, the ministry will use the Christmas holiday to take care of the most critical portions on the reconstruction zone and other roads in Apapa.

    NAN reports that some rolling machines were being used to compact construction materials on about 500 metres stretch of the road on the Ijora/CMS Carriageway.

    The machines were compacting soil-based materials to connect to a concrete section of the road.

    Read Also: Contractors handling Sukuk road projects to be paid soon-DMO

    Meanwhile, some of the road users have appealed for speedy completion of the project.

    A food vendor, Mrs Kaka Kolo, appealed to the Federal Government to increase funding for road repair in Apapa.

    “Trailers are the ones spoiling the road always. The best thing is for government to give contractors more money to repair roads.

    “Government should not wait for potholes to get big and trailers start falling before it does something,’’ she said.

    Also, Mallam Awal Usman, a truck driver, called for repair of all bad roads on the axis.

    He urged collaboration of all government agencies to end gridlock in Apapa.

    Usman, however, praised traffic managers for checking traffic offences compounding gridlock on the axis.

    Another truck driver, Mr Odu Nwoye, told NAN that the efforts of traffic managers had reduced accidents caused by bad roads and reckless driving on the axis.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, on June 17 signed a N4.34 billion Memorandum of Understanding  ( MoU ) with AG Dangote Construction Company Ltd. and some other stakeholders for the reconstruction of the four-kilometre Apapa-Wharf Road.

    The project is being funded by AG Dangote Construction Company Ltd, the Nigerian Ports Authority ( NPA ) and Flour Mills of Nigeria.

  • Senate panel, power ministry at war over alleged budget padding

    Senate panel, power ministry at war over alleged budget padding

    The budget defence session between the Senate Committee on Power, Steel Development and Metallurgy and the Ministry of Power, Works and Housing was Monday declared inconclusive following alleged questionable duplications of items.

    Minister of State for Power, Works and Housing, Mustapha Baba Shahuru and Permanent Secretary, Louis Edozie, were ordered by members of the committee to go and rework their documentation.

    The committee said that there were “too many duplications, repetitions and replications” in the presentation of the minister and the permanent secretary to be overlooked.

    Part of the details of the 2018 budget proposal the ministry officials presented at the session showed that N120 million, N480 million and N288 million were separately voted for purchase of utility vehicles by the Ministry.

    Another N100 million was earmarked for transfer and management of office files and documents.

    The lawmakers were furious that “year in, year out, the Ministry presents the same items in the budget and ask for more funds to execute the same projects.”

    Signs that the budget defence session might not end on good note started when Senator Clifford Ordia observed the duplication of purchase of utility vehicles, captured in three separate pages of the budget document.

    The Edo Central lawmaker also demanded explanation from the Minister and Permanent Secretary on why the Ministry planned to spend N100 million to transfer files.

    He added that there was another huge provision for ICT which should not be left hanging.

    Ordia said, “I need to understand this thing. Look at the different pages. You earmarked N120 million, N288 million and N480 million for the purchase of vehicles. I do not understand. Are these vehicles different? If you add up these figures, they will give you about N888 million.

    “You also said that you want to spend N100 million on transfer of office files. How do you intend to do that? The people in your office, what have they been doing? I can also see from your estimates here that you captured another item for ICT, different from the N100 million for transfer of files. You need to explain these things.”

    Another member of the committee, Senator Mohammed Hassan on his part noted that they were tired of seeing the same items every year.

    Hassan insisted that the minister and permanent secretary should take steps to put the ministry in order in the interest of the country.

    Hassan also demanded the breakdown of the N17.8 billion the ministry received in 2017 stating where the money was applied.

    The Yobe South lawmaker said, “Every year you bring new projects that are unrelated. We should be given list of ongoing projects. Unrelated projects are listed, nobody knows how much has been applied to the projects.”

    Senator Mao Ohuabunwa, another member of the committee said: “From the beginning to the end of the documentation there are questions and questions to be asked. Most of the funds were duplicated in the Transmission Company of Nigeria budget.

    “Mr. Minister, you said you will provide answers to our questions later. Why do we waste time sitting here when answers to our questions will be provided another day. They are not prepared for the budget defence. They should go back when they are prepared they should come back.”

    Chairman of the committee, Senator Enyinnaya Abaribe, noted that the 2017 budget (capital) of the Ministry recorded 18 only per cent performance.

    Abaribe said, “We will take it that the 2017 budget was abysmally low at only 18 per cent performance. This is unacceptable and I need to put it on record.”

    A mild drama ensued, when the Minister of State, Shahuru, could not respond to questions.

    Instead of answering the questions, Shahuru asked the committee to allow the Permanent Secretary, Edozie to provide answers on his behalf.

    His request was rejected by senators.

    Abaribe told the minister, “You were sent here to represent the Minister. It means you are here to respond to our questions. Last week, we invited the Permanent Secretary to respond. Today, it is your turn.

    “My colleagues asked me how come you are the person here and not Minister Fashola. But I told them since you were also a Minister, you could be here to on behalf of your Minister.”

    Asked why the substantive Minister of Power, Works and Housing, Babatunde Fashola, did not show up for the budget defence,  Shahuru, said that Fashola was attending to other state matters.

    Speaking on Fashola’s absence Abaribe said: “Maybe Fashola decided to snub us because of some media reports last week. But he ought not to have been angry by that. I am sure that was why he sent you because he did not want to come here.

    “I said it that it was deliberate that Fashola did not show up. What we need to scrutinise the budget was not provided. We needed something to make the process easy. Nobody is satisfied with these vague items. We are going to adjourn this meeting, pending when we will get these submissions from you.”

    “We are asking you to inform the Minister to be here to properly respond to all the questions we need to ask. We will do a comprehensive letter asking for explanation on items where we have raised questions. That will guide you in giving your submissions. We need you to be prepared when next you come.”

  • Bello lauds FG over Geregu power plant

    Bello lauds FG over Geregu power plant

    Gov. Yahaya Bello of Kogi has commended the Federal Government and other stakeholders for the completion of three turbines power generation at Geregu Power Plant in the state.

    Bello gave the commendation at the 22nd Power Sector Monthly Meeting with power stakeholders and other participants held at Geregu Power Plc, Ajaokuta on Monday.

    The governor expressed his appreciation to the Minister of  Power, Works and Housing, the President and the Vice President for the good job they had been doing in the power sector.

    “Today, we are glad that there is a relative improvement in the power generation and transmission across Nigeria, especially in Kogi.

    “The Federal Government has virtually solved all the power problems but we need a little patience to identify the communities which do not have electricity in Kogi to install the required transformers.

    “I want to encourage investors to make enough investment in power distribution so that various communities at the grassroots in Kogi and Nigeria at large can begin to enjoy the benefits.

    “When we assumed office, we met a dispute regarding Kabba Power Transmission substation, but we immediately waded in and resolved the issues for the work to be completed.”

    The governor said that the state government had made efforts to reduce cases of reported and unreported kidnapping and armed robbery cases in the state.

    “Without adequate security, the power plant here will not be safe and we will not be talking about generation, transmission or distribution.

    “We have been supporting and equipping our security agencies to ensure that the contractors and their workers working on the roads are safe and secure,” he said.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola said that the power production had reached an all-time high of over 7,000 megawatts in the nation.

    According to him, the ministry in collaboration with all the stakeholders has created a safe and more conducive environment to gain the confidence of investors in the power sector.

    “On December 8, we reached an all-time power production of 7,000 and a great peak supply of 5,155 Megawatts, which Nigeria has never produced or generated that much power into the grid.

    Read also: We are expecting additional 1,129 MW in 2018 – Fashola

    “The last supply was 5074 MW in January 2016, after which we went into a season of disruption of gas supply by militants.

    “It means that our policies and programmes are working, and we are also now able to evacuate substantially all of that power by transmission,” he said.

    Fashola expressed his gratitude to the government for paying the compensation that was militating against the development of the Kabba Transmission Sub-station.

    Mr Adeyemi Adenuga, the Managing Director, Generation, Geregu Power Plant, said that the plant was handed over to private company on Oct. 1, 2013.

    Adenuga said that the new owners had invested about 94 million dollars into the plant to bring it the present state.

    “Right now, we can successfully run three units (turbines) comfortably, effectively and efficiently. So, we hope that from this meeting, we will get the needed loads for our machine,” Adenuga said.

    Mr Otayitie Eminefo, the Special Adviser on Energy and Power to the governor, applauded the minister and stakeholders for their visit to the state.

    He appealed to stakeholders to give priority to electrification projects in the state.

    NAN

  • ECOWAS to improve electricity to states

    ECOWAS to improve electricity to states

    Due to the strategic importance of energy in achieving sustainable development and poverty reduction in the ECOWAS and Sahel region, the World Bank and ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREE), have designed a regional renewable energy project, the Regional Off-Grid Electrification Project (ROGEP), aimed at increasing access to sustainable electricity supply, most especially in the rural areas of member states.

    This was made known at a  One- Day Workshop organized by ECOWAS and the World Bank, supported by the Ministry of Power, Works and Housing in Abuja, with the theme: “Promoting Private Investment Standalone Solar Systems in West Africa and the Sahel”.  Ag. Director, Press, Mrs. Etore Thomas disclosed this in a statement Thursday.

    The Permanent Secretary, Power, Louis Edozien, who represented the Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, at the event disclosed that stakeholders in the Power Sector should move from policy formulation and focus more on policy implementation in the electricity value chain, emphasizing, that this would improve the living standards of rural dwellers in the ECOWAS sub region.

    He said we want to move from ‘’talking to acting, and to achieve that, we need to tackle manpower issues, funding gaps and materials’’.

    The Minister said the Regional off -Grid Electrification Projects (ROGEP) was designed by ECOWAS and World Bank to increase access to sustainable electricity services in the ECOWAS region for household, commercial enterprises and public facilities.

    The main objectives of the workshop was to create awareness and improve information on ROGEP and the national stakeholders, to share experience where we are on electricity, especially solar power system, identify challenges and proffer solutions in the electricity industry in the ECOWAS Region, among others.

  • FG plans for grid stability in 2018

    FG plans for grid stability in 2018

    In its bid to ensure grid stability next year, the Federal Government’s Power Sector Recovery Programme has set a baseline power supply for a minimum of 4,500MWH/H daily for 2018.

    The Programme which power sector Chief Executive Officer, led by the Minister of Power, Works and Housing, Babatunde Fashola took turn to explain to journalists in Abuja, has proposed in its operational and technical intervention that would stabilize power not to dip below 4,500MW by 2018.

    It says that ” Baseline power generation, transmission and distribution: Ensure minimum baseline power supply of 4,500MWH/H is guaranteed and distributed daily from 2018 to ensure stability of the grid.”

    Besides, the Programme also unfolded financial interventions for funding both past and further sector deficits from 2017 to 2021 and execute a plan to fund the required Electricity Market Support until tariffs support sector liquidity.

    Part of the financial plans, according to the Programme, is to eliminate past sector revenue deficits of N420billion from December 2016.

    The Programme also however revealed that the World Bank has expressed its willingness to assist the Federal Government electricity plan with a total financial support of $2.5billion.

    Meanwhile,  Fashola said that the Federal Government is about to start negotiation with the Chinese Exim Bank  for the $4.92billion loan for the construction of the 3050Mega Watts (MW) hydroelectric power plant in Mambilla, Sarduana Local Government Area of Taraba State.

    He recalled that the Federal Government had last Friday signed the contract for the project construction with three Chinese firms.

    The $5.79bn project is expected to be completed in six years. The funding consist of $4.92bn from the Chinese Exim Bank and other Chinese lenders are expected to provide 85 percent of the contract sum amounting to $4.92 billion, the Federal Government will put forward 15 percent amounting to $868.87million.

    The scope of work for the project includes, four large dams (Nya, Sumsum, Nghu and Api Weir), and two underground power house of 12 units of 250mw each.

    The other project components include two units of 330KV of 700km transmission lines to Makurdi and Jalingo, 120km of access roads connecting the project site and nearby communities and the resettlement of an estimated 100,000 impacted persons.

    Fashola however said Sunday that: in terms of Mambilla plant construction, two major steps have been taken. We have gotten the Federal Executive Council approval. That was what happened a few months back.

    “The next step was to sign the execution and procurement contract, which is the contract for construction that took place last Friday.

    “As you rightly pointed out, it is supposed to be funded by the Chinese Exim Bank loan, the negotiation for the loan will now start. For this, now we are waiting because it is now the Ministry of Finance takes over, who are the ones who do treasury work for Nigeria. So she (Minister of Finance) will lead the negotiations . And when we secure the loan then we are going to be able to tell you that this is the start date.”

    The minister revealed that despite the expectation of the loan a lot of preparatory work like the signing of the Memorandum of Understanding (MoU) for the loan with that state government ongoing.

    He added that a liaison office has been hired in the state government while the project planning team was also constituted by the ministry.

    The ministry, according to him, has identified people while the contractors have already started route estimation, route analysis and movement of heavy equipment.

    The Permanent Secretary, Dr. Louis Edozien said that the Nigeria Electricity Supply Industry (NESI) supplied 4,922MW on Tuesday, stressing that it was only 100MW lesser than the average highest  peak power generation that was recorded in the market this year and ever.

    His words: “Tuesday , the peak generation on the national grid was 4,922.9MW. It is just 100MW less than the maximum we ever had on the grid of 5,074. The total energy generated yesterday was 99,022MWH. That amount that you consumed in your homes is part that 99,022MWH.”

    Meanwhile, the Managing Director, Nigeria Bulk Electricity Company (NBET) said that N701billion was implemented from the January invoices.

    According to her, the January invoices have been merged because when the generation companies supply electricity 90 days time lag have to pass for the invoices to be read and reconciliation to be done before payment.

    The NBET, according to her, is not owing but it is operations a conventional system which has made it pay from January to May for the electricity they supply for the period.

    The delay, according to her,  is that there must be a reconciliation for the past payment which it is doing manually and expects to conclude the process in the next two weeks to pay to the outstanding from June to date.

  • Senate summons Fashola over $1b power project funds

    Senate summons Fashola over $1b power project funds

    The Senate on Wednesday mandated its joint committee on Power and Public Accounts to invite the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to give a detailed account of the public funds spent on the Fast Power Projects particularly Afam Fast Power Project.

    The upper chamber said that Fashola should also give evidence of feasibility study indicating the viability of the projects and requisite appropriation by the National Assembly as required by the Constitution.

    It said that the minister should also furnish the Senate with presidential approval for the projects

    It also asked the committee to investigate the Nigerian Sovereign Investment Authority ( NSIA), Nigerian Electricity Bulk Trading Company ( NBET) and others to establish the status of the balance of $350million from the $1 Eurobond issued by the Federal Government in 2013.

    The joint committee was given two week to report back to the Senate

    The resolution followed the adoption of a motion entitled “Monumental fraud in the power sector” sponsored Senator Dino Melaye (Kogi West).

    Melaye in his lead debate noted that sometime in July 2013, the Federal Government raised a total sum of $1Billion through a Eurobond issue.

    He said that he is aware that the sum of $350 million was taken by the Federal Government out of the proceeds of the July 2013 Eurobond issue and released to Nigeria Electricity Bulk Trading Company ( NBET) Plc as shareholder contribution to shore up its capitalization.

    He also said that he is further aware that NBET is a Federal Government owned public liability company that deals in electricity trading and management of associated liabilities.

    Melaye noted that the sum of $350 million released to NBET was to demonstrate NBET’s preparedness to assume its role as a government backed electricity bulk trader to provide market confidence in the privatized electricity market.

    He observed that the move by the Federal Government was intended to backstop NBET’S with new investors in the electricity market especially new generation companies and to provide assurance to them that NBET is a credit worthy off-taker of power with the requisite capitalization to meet its payment obligations to both greenfield and brownfields power generating companies.

    He further observed that as confidence building measure, $350 million was domiciled with the Nigerian Sovereign Investment Authority (NSIA) for reinvestment in low risk investment and structured in a manner that N BET can call for funds at short notice when required

    He said that the fund has been with NSlA since 2014 and has helped build market confidence especially among new investors in the electricity market who see NBET’s positive balance sheet as a form of security that their investments are safe and that NBET has the wherewithal to meet its payment obligations.

    He expressed alarm that “there is now a desperate attempt by the Federal Ministry of Power, Works and Housing to retrieve this fund ( $ 350 million) and divert same to fund the so called Fast Power Projects which the Ministry has already spent $35 million of public funds not appropriated by the National Assembly.”

    Melaye said that he is “further alarmed that since the introduction of the Fast Power Project by the Federal Ministry of Power, Works and Housing, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric (GE) as cost for turbines and $6million in consultancy fees to other entities respectively, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.”

    He observed that “a lot of questions are begging for answers as regards the $29 million paid to General Electric and the $6 million paid to other consultants as to: “Who were the Consultants and how were they procured?

    “Was there observance of due process in awarding the consultancy of $6 million and in paying General Electric $29 million for turbines?

    “Why is the transaction cloaked in secrecy?  “What is the true value of Afam Fast Power?

    “Why is the Ministry engaging in constructing new power plant while government has several idle plants that is seeking buyers for?

    “Why is the Ministry that is supposed to be making policies, dabbling into constructing new power plants that we have all agreed is better handled by the private sector?”

    Melaye expressed concerned that the Federal Ministry of Power , Works and Housing is “determined to persist in this brazen violation of the Constitution and extant laws on due process by insisting that the NSIA should release the $350 meant to NBET on the pretext of acting under a purported presidential approval.”

    He said that he is convinced that there is an urgent need to bring the Ministry to order regarding its planned diversion of the sum of $350 meant for NBET and further demand a detailed account of unappropriated public funds spent on the controversial fast power projects.

    Senator Gbenga Ashafa in his contribution said that for the Senate to do a thorough job, those mentioned in the motion should be given opportunity to say their own side of the story.

    He noted that some of the allegations raised in the motion were grave and should not be taken without hearing from those involved.

  • Electricity tariff: Senators to meet Fashola

    Electricity tariff: Senators to meet Fashola

    Chairman, Senate Committee on Power, Steel Development and Metallurgy, Senator Enyinnaya Abaribe, Monday said that his Committee has concluded plans to meet Minister of Power, Works and Housing, Mr. Babatunde Fashola to address concerns raised by power Distribution Companies (DISCOS), over electricity pricing.

    Abaribe who was said to have disclosed this during a tour of Power installations under the Port Harcourt Electricity Distribution Company (PHEDC), in Port Harcourt, noted that the committee was seeking to address the contentious issue of electricity tariff.

    The senator was said to have agreed that fluctuations in pricing was affecting the sector.

    Senator Abaribe, accompanied by six other senators on the visit, was said to have told officials of PHEDC that his Committee wanted to resolve the question of differentials between the money payable to generation companies and other stakeholders by the Discos.

    According to him, all options will be placed on the table during the proposed meeting with the Minister.

    He said: “We have had this discussion about pricing. We are taking it up with the Ministry of Works, Power and Housing. What we are looking for is a stable price. We do not want a system where things fluctuate. We will sit with them and look at all the variables.”

    The Senator also told the leadership of the PHEDC that they needed to work closely with the Nigerian Security and Civil Defence Corps (NSCDC) to tackle activities of vandals.

    The NSCDC, he said, is empowered by law to protect critical national infrastructure and prosecute vandals. He said the police is limited in the prosecution of vandals.

    He said: “The question about prosecution is key. There is a law passed by the National Assembly to empower the Civil Defence Corps. They have powers to prosecute people who engage in energy or cable theft. They have the power to do that. If you drag them to the police, the fines are less. With Civil Defence Corps, you get favourable judgments.”

    He said: “The job of the National Assembly is to legislate and help with laws that will make laws easier. This is one of the reasons we are going on oversight. The issue of right of way has come of age that we have to collaborate with state governments. It has to do with land use. I do not think state governments give the permission to people to build along power lines.

    “Because of the decay, people now do certain things and nobody gets fined. The laws are already there. It is the enforcement of these laws that is the problem. We need to work with state governments to implement these laws.

    “Part of your corporate social responsibility is to ensure that the people in places where you do business are part of your campaigns. These problems are peculiar to our system.

    “People now use transformer oil to fry akara and even cook. There are places in Nigeria where these things happen. We need to educate people on the dangers of these things. DISCOS need to carry out more awareness programmes to educate their people.

    “We must begin to differentiate between the rich and the poor. The most vulnerable in the society should not pay. There is a place in Brazil where poor people stay. We visited them. We discovered that the whole community was connected, but they were not paying. We should have that system here.”

    Acting Chief Executive of PHEDC, Engineer Kingsley Achife was said to have in his speech told the committee that the Discos were faced with serious challenges.

    He said: “One of the biggest problems is electricity theft. Very highly connected individuals are involved. About 130 people are currently in custody over this theft. We are appealing to the Senate to make hostility against electricity staff a crime. Our staff have been kidnapped, shot at and killed in their course of doing their duties. We need the help of lawmakers to put an end to this.

    “Some communities reject metering here. Whenever our staff goes there, they are either beaten up or chased out. This is a problem. In places where we have put metres, the communities have bypassed them and they do not pay their bills. This is a major challenge we are facing.”

     

  • Obsolete equipment hindering power distribution, says Fashola

    Obsolete equipment hindering power distribution, says Fashola

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, on Wednesday explained why distribution companies (Discos) reportedly rejected over 9,000 megawatts of electricity within one week recently.

    Noting that power generation has grown from 2,690 megawatts in 2015 to 6,800 this August, he said that there is a problem with distribution caused by the inability of Discos to upgrade their equipment to the level of the generation being made.

    According to him, an average of 4,000 megawatts of power are not accepted regularly, due to the weak capacity of the equipment being used by the Discos.

    He said that some of the equipment acquired by the Discos upon privatisation have become antiquated and obsolete and hence, require being upgraded if they would be able to absorb and distribute the existing megawatts of electricity.

    The Minister said that the government was committed to guaranteeing stable power supply, pointing out that the power sector reform of the federal government would address that problem.

    He said, “On the rejection of 9,000 megawatt of power, I have not read the report.  As at the beginning of the 10th August this year, the amount of power that was available to be delivered to the grid was 6,800 plus megawatts. So what that means is that from 2,690 in 2015 when this government was inaugurated, we have demonstrated that we can grow.

    “We have overcome the gas challenges and the vandals and pipeline repairs have progressed and that has impacted success on the generation side. Our power is going to come from different sources, hydro, gas, solar and that is why we are investing in mambilla for more hydro so that when one source is vulnerable we can rely on another’s source.

    “But in addition to power increase in terms of production, the transmission capacity has also increase, it has moved from the proverbial 5,000 to 6,700 megawatt that we can will. But the problem now is at the distribution end. For the kind of sustainable power we all want to see, it means every part of the value chain must work. And that is why I will continue to say that as we demonstrate our ability on generation and transmission we will demonstrate the same on our distribution.

    “So what we are now putting on the grid because the Discos can’t take the power is roughly about 2,000 megawatt so there is 4,000 plus averagely that is not being taken. So if you calculate for three days or five days, that your submission on 9,000 is probably not correct.” he said

    On whether the improvement of power supply in the country is a result of raining season or improvement on the part of Discos, Fashola said, “what is interesting is that for the first time in a long time, our gas fired plants and our hydro power plants driven by water have converged together, and when you factor that to the improvement that the Gencos investors have made into their plants and are still making, it explains the improved power supply that you have.”