FG to Borrow $1.15Bn to Boost Power-Maku

The Federal Government is to borrow $1.15 billion for its power reforms this year just as the Niger Delta Power Holding Company (NDPHC) which supervises the National Integrated Power Projects (NIPP), said that Nigeria’s power generation capacity in the current year will exceed 7,000 mega watts, far above the 4,264MW recorded in 2012.

Labaran Maku, minister of Information, said that $1 billion will be secured from the African Development Bank to finance gas supply, while another $150 million will be secured from the same bank to finance the liberalisation of the power sector, according to a Premium Times report monitored by Sahara Reporters.

The Federal Government's decision to go ahead with the loan is despite condemnation from economists, civil society groups and opposition parties that Nigeria's debt was growing without any real benefit to show for it, the report said.

It said while talking about the achievements of the Jonathan administration, the minister also said that the current electricity generation in the country had reached 4,502 megawatts, the highest in recent times. According to him, electricity generation is expected to move up to 7,000 megawatts in 2013.

"At the moment, there is an average of about 15 to 18 hours per day of constant power supply to different parts of the country. This feat was brought about through the implementation of the integrated power sector reform programme anchored on the Power Roadmap.

"This includes institutional reforms to involve the private sector in power generation, transmission and distribution," he said.

Maku said under the roadmap, 10 new thermal power plants had been completed, adding that more were coming in 2013 to boost electricity supply to all parts of the country.

Elsewhere, Mr. Cyprian Nwachukwu, special adviser to the managing director/chief executive officer ,NDPHC, said that the company will complete all gas turbine projects under the NIPP in 2013, which will generate a total of 4,264MW.

Currently, the NIPP facilities are generating 1,687MW into the national grid. Nwachukwu said that out of the 1687MW, Olorunsogo power plant generates 562.5MW, while Omotosho and Sapele generate 450MW each and Alaoji 225MW.

Nwachukwu said: "Our plan for 2013 is completion of all gas turbine projects, which will give the country 4,264MW. We will also follow up the outstanding combined cycle for Alaoji, which is 510MW. As at December 7, 2012, five units of 112.5MW each from Olorunsogo were supplying power into the national grid, while four units of 112.5MW each from Omotosho and Sapele were generating and Alaoji was also generating from two units, which is 225MW."

He noted that the NDPHC would also follow up the completion of transmission projects including 2,194Km 330KV lines & 5,640MVA 330/132KV substation and 809Km 132KV lines and 3.433MVA 132/33KV substation.

He also said the company will follow up on the completion of some distribution projects including 3,540MVA plus 2,600Km & 1,700Km at 11KV & 33KV lines respectively.

"We will complete gas projects and conclude all Gas Sales Aggregator Agreements (GSAA) and Gas Transmission Agreements (GTA). We also prepared to receive and commence the implementation of the Transaction Adviser's recommendation when approved by the Board," he added.

Nwachukwu cited the challenges facing NDPHC to include two-three year suspension of the NIPP projects, which resulted in their delivery with attendant costs.

He listed gas supply as one the challenges impeding supply because generation from the thermal power stations is subject to availability of gas. Other challenges include security and community issues where the projects are located as well as port clearanceand contractor performance problems.