29 September 2013, Abuja – The Federal Government says it has earmarked eight billion dollars for the execution of the Nigerian Gas Master Plan with specific interest in meeting the Gas-to-Power demand in the country.
Vice-President Namadi Sambo stated this in Abuja at a forum on investment in the power sector.
He said the programme would be jointly implemented by Nigerian National Petroleum Corporation, NNPC, Nigeria Gas Company, NGC, and the private sector.
According to him, already 500 million dollars out of the one billion dollars (realised from) Euro-Bond would be utilised as counterpart funding for implementation of the project.
He said government had also embarked on extensive programme for the upgrading of the nation’s power transmission capacity.
“We are also implementing an extensive programme for the upgrading and expansion of our power transmission capacity.
“We plan that before the end of 2014, we can transmit up to 10,000mw and by 2016 up to 20,000mw.
“The total funding for this project is estimated by the Transmission Company of Nigeria, TCN, to cost about $3.7 billion dollars.
“I am pleased to inform you that funding for these projects has already been arranged.
“$1.6 billion dollars is coming from the sale proceeds of the NIPP/NDPHC ten new power plants, $500 million dollars from the China-EXIM Bank and the balance from the African Development Bank, AfDB, Islamic Development Bank and our local banks.”
He announced that the PHCN asset would be handed over to private sector operators on Monday, September 30th.
Sambo reassured that government would continue to improve the efficiency and affordability of power supply in the country.
“The Federal Government shall in tandem with the goals and objectives of the National Electric Power Policy, NEPP, continue to improve the efficiency and affordability of power supply.
“We are investing in improving the mix generation capacity of this country by the construction of the Zungeru hydro-power which would add 700 mega watts at the cost of $1.2 billion dollars.
“The construction of the Mambila Hydro power plant would add 3,050 mega watts, and we are utilising N1.7 billion from the sale proceeds of the NIPP Power plants as counterpart funding for this project that will cost $6.4 billion dollars.’’
Sambo commended the private sector and the banking industry for supporting government efforts to improve the power situation in the country through their positive response to financing the independent power projects.
He particularly lauded the Central Bank of Nigeria for kick starting the privatisation process through its N300 billion Intervention Fund for the power and aviation sectors of the economy.
“Let me also congratulate the banking industry for its contribution so far to put our great country on the part of growth to attain our aspiration, to be among the top 20 economies in the world through reliable, affordable and adequate power supply.”
According to Sambo, in the coming years, more demand will be placed on the banking sector to support power infrastructure renewal and industrial development to support the power sector.
Goodwill messages were delivered at the event by stakeholders in the nation’s power sector.