€161m Siemens power project gets FEC’s approval
€161.33 million has been approved by the Federal Executive Council (FEC) for the Siemens power project and N1.7 billion for purchasing an office complex for the Nigeria Electricity Liability Management Company (NEMCO).
Adebayo Adelabu, the Minister of Power, while announcing this on Monday after the Federal Executive Council (FEC) meeting presided over by President Bola Ahmed Tinubu at the State House, Abuja, explained that Phase One involves the engineering, procurement, construction, and financing of upgrades to 14 existing substations and the construction of 21 new ones nationwide.
The Siemens project, part of the Presidential Power Initiative, upgrades Nigeria’s transmission infrastructure.
As part of the initial rollout, five key substations, which include the Onitsha 330/132 KV substation under the Enugu Electricity Distribution Company, the Offa 132/33 KV substation under the Ibadan Electricity Distribution Company, the Abeokuta 330/132 KV substation, the Ayede 330/132 KV substation, and the Sokoto 132/33 KV have been identified for upgrades.
Adelabu said the project builds on successfully completing the pilot phase and aims to resolve transmission bottlenecks that have long plagued Nigeria’s power sector.
“This initiative will stabilise and expand the transmission segment of the power sector value chain in the near future,” he said.
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He noted that the approval aligns with recent discussions between President Tinubu and German President Frank-Walter Steinmeier, aimed at fast-tracking the Siemens initiative to boost Nigeria’s power supply.
In a separate approval, the FEC also sanctioned the N1.7 billion purchase of an office complex for NEMCO in Abuja’s Wuse 1 District. The purchase cost includes a 7.5% Value Added Tax.
Established under the 2005 Electric Power Sector Reform Act, NEMCO manages legacy liabilities in the power sector.
Adelabu explained that acquiring the office complex was necessary to address rising rental costs and accommodate the company’s growing workforce.
“NEMCO currently occupies the facility, and the outright purchase will ensure operational stability while supporting its expanded mandate,” he said.
Source: The Nation
