The Nigerian Government has inked a contract for the pre-engineering phase of the Presidential Power Initiative (PPI), aimed at boosting the nation’s power generation and achieving operational capacity of 25,000 megawatts by 2025.
The contracts were signed last Thursday by Siemens Energy Nigeria and FGN Power Company, a special purpose vehicle created by the Federal Government for the project.
Recall that Federal Government and the German multinational conglomerate company, Siemens AG had signed a Letter of Agreement on the Nigerian Electrification Roadmap, now PPI.
On July 29, 2020, the Federal Executive Council (FEC) approved the payment of €15.21m (N6,940,081,465.20) offshore and N1.708bn onshore as part of Nigeria’s counterpart funding for the power deal.
With the issuance of the award letters, Siemens is expected to commence the pre-engineering scope of the project.
“This award enables Siemens AG and Siemens Energy to drive forward this mega project, which will upgrade the electricity network to achieve operational capacity of 25,000 megawatts from the current average of around 4,500 MW, through a series of projects spanning three phases,” a document seen by the Punch News reads.
The pre-engineering aspect will include engineering design works, specifications for onshore installation, commissioning works for the transmission and distribution systems, network development studies, power simulation, training, and support services.
The News medium reported that the signing of the award letters was witnessed by the Chief of Staff to the President, Prof. Ibrahim Gambari; the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed and the Minister of Power, Mr Saleh Mamman.
The objective of the PPI is to realign and optimise the available capacities across generation, transmission and distribution sectors of the electricity industry, according to the Government.
The Managing Director, Siemens Energy Nigeria, Seun Suleiman, was quoted as saying, “Siemens Energy is committed to work with the Federal Government of Nigeria through the FGNPowerCo to see a successful implementation of the presidential power initiative. We have successfully carried out a similar project in Egypt.
“This project will transform the energy landscape of the country and we are grateful the government has entrusted us with this notable initiative. We are capable and we will deliver excellent results.”