Home Business Power Woes: FG Approves N10.48bn, $27.09m for Power Sector to Boost Supply

Power Woes: FG Approves N10.48bn, $27.09m for Power Sector to Boost Supply

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The Federal Executive Council, (FEC), on Wednesday approved contracts worth N10.48 billion and $27.09 million respectively for the Federal Ministry of Power to boost electricity supply.

Minister of Power, Abubakar Aliyu told State House correspondents, after the weekly Council meeting presided over by President Muhammadu Buhari that the contracts are for the purchase of major electricity transmission equipment to further boost electricity supply across the country.

“I presented three memos today, the first one was a variation of a subsisting contract for the Katampe to National Stadium, 132 direct circuit line which is about 90 percent completed”, he said.

According to the minister, the contractor had sought the variation because of some delays on the project, adding, “the necessary due processes have been followed and the variation approved by FEC today is N201,949,811.00.”

He stated that the contracts are also for the procurement of two sets of power transformers and the construction of a transmission line in Kebbi State.

He explained: “The second approval was for the design, manufacture and supply of two 60 MVA 132/33 KV power transformers. The cost has two components; the offshore is $1,294,447 then the onshore is N16,485,000.

“The third approval is a contract to also design, construction and installation of a 260 kilometre transmission line from Birnin-Kebbi, through Zuru to Yauri in Kebbi State. Also, the cost has two components; the offshore is $25.8 million and the onshore is N10.2 billion.”

Aliyu expressed optimism that the Presidential Power Initiative (PPI), remained on course to deliver on incremental power supply, despite the setbacks with the Siemens power deal and recurrent sabotage on power infrastructure.

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