FG renews hopes on moribund hydro power projects

By Wahab Akanji, Abuja

 

Federal Government has restated its commitment to the timely completion of the 3,050MW Mambilla and Zungeru 700MW hydroelectric power projects in 2016.

 

According to the Federal Government, similar projects meant for completion in the new year include, the 215MW Kaduna Power project, 10MW Katsina wind farm project and 81 transmission projects for the evacuation of generated power.

 

Minister of Power, Lands and Works, Mr. Babatunde Raji Fashola, made these revelations in a 2016 work-plan submitted he to the House Committee on Power on Thursday.

 

Fshola stated that to deliver on the projects, the Federal Government has accessed the $50 million second tranche of African Development Bank budget support facility while negotiation is ongoing on $100 million HSBC and $200 million Rand Merchant Bank facilities.

 

The Minister was represented by the Permanent Secretary of the Ministry, Mr. Louis Edozien.

 

Edozien told the lawmakers that the total installed generation capacity is 7,138MW and the peak power generation achieved to date is 4,810MW while stranded power generated is 2,328MW.

 

The 2,328MW stranded power, he said, was primarily caused by gas supply constraints; transmission grid bottlenecks and distribution off-take constrains which include rejection load distribution companies.

 

On the budget of the ministry, he said a total sum of N431,637,856,934 was proposed for capital while N741,900,019 is for overhead for the 2016 fiscal year.

 

In order to fund the capital component of the budget, Federal Government will provide N99,344,125,696 while additional sum of N309,722,157,561 by Debt Management Office (DMO) and or Central Bank of Nigeria (CBN) to ensure payment assurance for the entire electricity industry would be obtained from various sources.

 

He said an additional sum of N2.520 billion is expected for specific projects are to be financed through other sources, once the TCN wheeling tariff captured in MYTO 2.1 is supported by the liquidity assurance being put in place by NBET.

 

Speaking on the revenue generation for the year, he said the Ministry projected N18,591,126,622 against N7,215,076,122.61 realised in 2015 fiscal year.

 

In the breakdown of the revenue to be generated showed that NERC is to generate the sum of N16,907,215,700.65 in 2016 against N4,846,154,386.55 realised in 2015; REA is to generate N110 million against N12,575,000; NEMSA is to generate N262,185,921 against N104,076,736.06; NBET is to generate N1.009 billion against N1.950 billion.

 

Out of the the total sum of N1,115,480,907 approved capital expenditure in 2015, the sum of N557,740,453.50 was released by the Federal Government,

 

However, only the sum of N3,114,130,411.12 was released, from the total sum of N5.130 billion approved for capital expenditure for the Ministry and agencies and parastatals, which include Rural electricity Agency (REA), Nigerian Electricity Regulatory Commission (NERC), EMSL, NAPTIN, NELMCO, TCN and  NBET. 

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