Oil & Energy
FG Earmarks N77.5bn For Zungeru Power Project
Determined to tackle the power and agricultural problems of the country, the Federal Government has set aside $500 million (about N77.5 billion) as counterpart fund for the Zungeru Hydro Power Project in the North.
Vice President Namadi Sambo said this when the Divisional Manager in charge of the Public Private Partnership (PPP) section of the Islamic Development Bank, Mr Irfan Bukhari, paid him a courtesy call.
The vice president said that power and agriculture were the government’s key priorities, adding that they would be addressed squarely.
According to him, the federal government is anxious to commence the Zungeru Hydro Power Project since the documentation is ready and the only thing left is putting final touches with the bank.
Sambo added that the China EXIM Bank and the Islamic Development Bank (IDB) were funding the project, while the Federal Government had provided its counterpart fund of $500 million.
He urged the bank to look into the Mambilla Hydro Power Project which, he noted, was another important project which documentation would be completed by the second quarter of 2012, pointing out that the contract would also be awarded by the third quarter of 2012.
He reminded the bank of the discussions held between himself and the President of the bank in Saudi Arabia on the development of the irrigation sector.
Sambo said that Nigerian experts were expected to visit Malaysia and Indonesia to examine their irrigation models for implementation in Nigeria.
The vice president said that some dams had been selected to accommodate small and medium Hydro Power plants, while others were for irrigation schemes.
Earlier, the Divisional Manager in charge of the PPP in the IDB, Mr Irfan Bukhari, had briefed the vice president on the essence of their visit to Nigeria, saying that they were interested in investing in infrastructure and agriculture.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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