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Obasanjo spent N521bn on electricity in 8 years – PHCN

Posted by By LOUIS IBA on 2007/07/12 | Views: 439 |

Obasanjo spent N521bn on electricity in 8 years – PHCN

The management of Power Holding Company of Nigeria (PHCN) said it received a total of $4.07billion (about N521billion) from the Federal Government from 1999 till date to revamp its facilities, build new ones and boost electricity supply.

The management of Power Holding Company of Nigeria (PHCN) said it received a total of $4.07billion (about N521billion) from the Federal Government from 1999 till date to revamp its facilities, build new ones and boost electricity supply.

Spokeswoman for the electricity firm, Mrs. Efuru Igbo, in a statement on Tuesday, said that out of the amount, the government injected $2.06billion (about N264 billion) to fund the projects of the then National Electric Power Authority (NEPA), now PHCN, while another $2.01billion (about N257 billion) was sunk into the construction of new power plants in the Niger Delta as well as the National Integrated Power Project (NIPP).

Igbo said her statement became necessary to clear the cloud of speculations and allegations hanging in the air over the actual investment by the Obasanjo administration between 1999 and 2007, especially in the media.

Said the PHCN spokeswoman: "Sequel to newspapers reports on the total amount released to PHCN/NEPA by the Federal Government, there is the need to put the record straight. For the avoidance of doubt, the actual amounts received by PHCN/NEPA and NIPP/NDPHC Plc are N264 billion ($2.06 billion) and N257 billion ($2.01 billion) respectively, which translates to a total of N521 billion ($4.07 billion).

"The power sector before 1999 was in deplorable state due to poor funding and inadequate infrastructural development for over 10 years.
"The lack of maintenance and replacement of damaged equipment led to a wide gap between demand and supply. Generation went down from installed capacity of about 5200MW to 1,750MW, as compared to a load demand of 6,000MW. At the same time, only 19 out of the 79 installed generating units were in operation."

"In its determination to revamp the power sector, the Federal Government, between 1999 and 2007, approved a total budgetary allocation of N396billion ($3.1billion) for PHCN(NEPA). To date, PHCN (NEPA) received the sum of N264billion ($2.06billion).

"Out of the amount received, the sum of N126 billion ($986 million) was for the rehabilitation of six existing thermal and hydro power stations at Afam, Delta, Egbin, Kainji, Sapele and Shiroro, the construction of the following power stations; 150MW Delta, 414MW Geregu/Ajaokuta, 335MW Omotosho (the three have been completed and connected to the grid), 335MW Olorunsogo/Papalanto, (commissioned, awaiting connection to the grid), 230MW Omoku and 504MW Alaoji (the two are under construction).

"PHCN/NEPA funded the construction of 276MW Afam Power Station at the cost of N22 billion (Euro130 million) from Internally Generated Revenue. The sum of N106 billion ($826 million) was for the reinforcement and construction of transmission lines and substations, which included among others the completed Abuja Shiroro 330KV double circuit line and substations at Katampe and Central Area, Abuja, Owerri-Ahoada- Yenagoa 132KV line and substations, Kano-Dutse-Azare 132KV and associated substations.

"Also, the sum of N25billion ($192million) was released for the reinforcement of distribution infrastructure, including construction of substations, procurement of transformers and meters, while the sum of N7 billion ($57 million) was for other operational expenditure.

"Furthermore, the Federal Government, in collaboration with the states and local governments in 2005, embarked on the construction of new power stations under the National Integrated Power Projects (NIPP) of Niger Delta Power Holding Co. Plc (NDPHC). The power stations are: 561MW Calabar, 338MW Egbema, 225MW Gbarain, 451MW Ihovbor/Eyaen, 451MW Sapele and 230MW Omoku. The NIPP project also involves the construction of transmission lines, associated substations and reinforcement of distribution infrastructure. The sum of N257billion ($2.01billion) has so far been funded.

"It should be appreciated that power sector is capital intensive and have long gestation periods. The international bench mark price for the construction of a new 100MW power plant is $100million (N12.8billion). Presently, Chevron is constructing a 780MW power station at Agura, Lagos, at a cost of $750 million (N96 billion). Also, Shell Petroleum Plc is constructing a 1000MW power station at Afam, Rivers State at a cost of $1 billion (N128 billion)."

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Comments (3)

Abieyuwa(Edo, Nigeria)says...

Otasowie means evening life is better than morning life. There is an error in your “evening life is better than evening life”?

Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

Fay(Katy, Texas, US)says...

Actually translates to bravehearted.