FEC approves 161 million euros for the construction of 21, modernization

Out of Juliana Taiwo-Obalonye, Abuja

The The Federal Executive Council (FEC) has approved contracts for the design, procurement and construction of new substations under the Presidential Power Initiative (PPI).

Energy Minister Adebayo Adelabu disclosed this to State House correspondents yesterday at the end of the Council meeting.

According to him, this first phase will include the modernization of the existing infrastructure and the construction of new substations to increase the national electricity supply.

“The approval represents a critical step towards fulfilling President Bola Ahmed Tinubu’s promise to improve Nigeria’s energy capacity,” Adelabu said.

He explained that the initiative aims to achieve an operational capacity of 12,000 megawatts within four years, with an immediate target of 8,000 megawatts in the next 12 to 24 months.

The contracts, worth around 161 million euros, provide for the modernization of 14 existing substations and the construction of 21 new ones across the country.

The key locations of these substations include Onitsha, Abeokuta and Sokoto. “These upgrades are critical to stabilizing our transmission network and ensuring reliable electricity supply to Nigerians,” Adelabu added.

The PPI is a cooperation with Siemens AG, which has already delivered ten mobile substations and ten power transformers as part of its commitment.

“Basically, the Federal Ministry of Energy had two approvals in the form presented. The first was an approval for the award of contracts for engineering, procurement, construction and financing for the implementation of the modernization of the 330/132 KV and 132/33 KV substations under the first phase of the presidential initiative, popularly known as Siemens- project is known.

“After completing the pilot phase of this project. Therefore, in its meeting today, the Federal Executive Board considered it necessary for us to move forward, as the President of the Federal Republic of Nigeria promised last week in a meeting with the President of the Republic of Germany. The cost of this first batch of the first phase of the Siemens project, approved this afternoon, is 161.33 million euros.

The first phase of this Siemens project, which refers to transmission, modernization and expansion, actually includes 14 brownfield substations that need to be upgraded and upgraded, as well as 21 greenfield substations, which are new substations that are being built in the to be built across the country to improve the transmission segment.

“Among the first projects of this Phase 1 is an Onitsha, 330/133 KV substation of the Enugu Electricity Distribution Company.

“Secondly, Offa 132/33 KV Substation of Ibadan Electricity Company. There is the new Abeokuta 330/132 KV substation. We have Ayede 330/132 KV substation. And finally, the Sokoto 132/33 KV substation. These are the five substations being worked on as part of the first phase of this first phase of the Siemens project. And we expect that, once completed, this will further enhance and stabilize the transmission segment of the energy sector value chain in the not too distant future.”

Adelabu also said that the FEC had approved the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NELMCO) in Abuja for N1.7 billion.

The aim is to reduce rising rental costs and ensure that NELMCO can effectively manage its expanded responsibilities in the reformed power sector.

The minister said: “The second approval is for the award of a contract to acquire an office complex for the Nigeria Electricity Liability Management Company, which we all know as NELMCO.

“The office complex approved for full purchase is located at Plot 2148, Cadastra Zone A02 Wuse 1 District Abuja. The cost of this acquisition is 1.7 billion naira including 7.5 percent VAT.

“We all know that NELMCO is the product of the DPSRA Electricity Sector Reform Act, 2005 and plays a very special role in ensuring the success of the Electricity Sector Reform. Although the company is currently based in this facility, purchasing the property makes sense to avoid the rising rents that are regularly increased due to inflation. This is why this offer of outright purchase has been chosen and this will also enable the company to fulfill its expanded mandate and increase staffing levels to meet its commitment.”