Siemens29 May 2020 11:48
Nigeria: Govt Directs Conclusion of Electricity Deal With Siemens
28 May 2020 By Emmanuel Addeh
Abuja — The federal government Wednesday directed the Ministries of Power, and Finance, Budget and National Planning as well as the Bureau of Public Enterprises (BPE) to speed up the process of finalising the pre-engineering and concessionary financing agreement with Siemens AG, to rev up power supply in Nigeria.
President Muhammadu Buhari, during the signing of the power deal, had directed both teams from the company and their Nigerian counterparts to first focus on fixing the transmission and distribution infrastructure that had threatened Nigeria Electricity Supply Industry.
He said the goal was to achieve 7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023 in phases one and two respectively, noting that after the transmission and distribution system bottlenecks have been fixed, the third and the final phase would be to drive generation capacity, and overall grid capacity to 25,000 megawatts.
In a series of tweets from the verified twitter page yesterday, the presidency noted that Siemens would singlehandedly pick the Engineering, Procurement and Construction (EPC) partners for the sake of transparency.
The funding for the PPI will be secured under concessionary terms (up to three-year moratorium and 12-year repayment at concessionary interest rates) through the German Euler Hermes cover, which @NigeriaGov will on-lend as a convertible loan to the other shareholders in the DisCos.
"Under the PPI, @NigeriaGov will on behalf of the other shareholders in the electricity distribution companies invest in infrastructure upgrades in the form of improved payment systems, distribution substations, transformers, protection devices, smart meters, transmission lines," t
"The president has also directed that to ensure value for money and preserve the integrity and transparency of the procurement process under the government-to-government framework, Siemens AG shall be solely responsible for nominating its EPC partners to perform all onshore works; no middlemen.
https://allafrica.com/stories/202005280597.html