The Federal Executive Council (FEC) on Monday approved the sum of €161,328,228 for the execution of contracts in the first batch of Phase 1 of the Siemens Power projects across the country.
The FEC, presided over by President Bola Tinubu, also okayed N1.7 billion for the acquisition of an office complex for the National Electricity Liability Management Company (NEMCO) in Abuja.
Briefing newsmen after the FEC meeting, Minister for Power, Adebayo Adelabu, said the first batch covers work on substations in Onitsha, Offa, Abeokuta, Ayede, and Sokoto, under various electricity distribution companies.
“At the Federal Executive Council meeting held this afternoon, there were basically two approvals for the Federal Ministry of Power, as I presented. The first was actually an approval for the award of contract for engineering, procurement, construction, and financing for the implementation of the 331/32 KV and 132/33 KV substations upgrade under Phase One of the Presidential Initiative, popularly known as the Siemens project, consequent upon completion of the pilot phase of this project.
“So, the Federal Executive Council at today’s meeting considered it necessary for us to move forward as promised by the President of the Federal Republic of Nigeria at a meeting he held with the President of the Republic of Germany last week. The cost of this first batch of Phase One of the Siemens project was 161,328,228 Euros. Phase One of this Siemens project, as it relates to the transmission upgrade and expansion, actually includes 14 brownfield substations that need upgrade and revamping, and 21 greenfield substations, which are new substations to be built across the country to improve the transmission segment.
“And the first batch of this Phase One of the projects includes: Onitsha 331/32/33 KV substation under the Enugu Electricity Distribution Company; Offa 132/33 KV substation under the Ibadan Electric Distribution Company; the new Abeokuta 331/32/33 KV substation; Ayede 331/32/33 KV substation; and lastly, Sokoto 132/33 KV substations.”
He said the five substations are to be worked upon under the first batch of Phase One of the Siemens project.
“We expect that this will further improve and stabilise the transmission segment of the power sector value chain in no distant future upon completion,” he added.
Regarding the N1.7 billion office acquisition, the minister noted that NEMCO currently operates from the property and that outright purchase would mitigate rising rental costs and provide space for its growing operations. The office is located at Plot 2148, Cadastral Zone, Wuse 1, Abuja.
NEMCO, established under the 2005 Electricity Power Sector Reform Act, plays a critical role in supporting electricity sector reforms.
He said, “Another approval that was given at the FEC this afternoon actually relates to the award of a contract for the acquisition of an office complex for the Nigeria Electricity Liability Management Company, which you all know as NEMCO. The office complex approved for outright purchase is at Plot Number 2148, Cadastral Zone, Wuse 1 District, Abuja, for NEMCO, and the cost of this acquisition is 1.7 billion naira, inclusive of 7.5% VAT.
“We all know that NEMCO is the product of the Electricity Power Sector Reform Act of 2005, with a very specialized role to play in ensuring the success of the electricity sector reform. The company currently resides in this particular facility, but it is experienced that the property be acquired to avoid the escalating rent, which is being increased regularly due to inflation.
“So, this offer of outright purchase was opted for, and this will also enable the company to meet up with its expanded mandate and increase in staff strength.”
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