Page 5 - AfrElec Week 32

AfrElec COMMENTARY AfrElec

performance improvement plans. They have engineering contractors.
their extensive long-term plans. So we are align- “We have come up with a concept that we
ing with those plans. Just the end of last year, the believe is very comprehensive. It will utilise local
Discos issued the final version of their perfor- resources and SMEs and leverage local third-
mance improvement plans. So, it is up to us to party EPCs that we will be working with, and the
take up those plans to draw up a longer-term idea is to have trained and certified engineers
strategy to evacuate the 25,000MW. in-country that can service this equipment. Even
“The federal government has taken over the university students will be trained for this,” she
role of chief stakeholder for resolving the power said.
deficit. Generation and distribution are already “We will ensure the right technology. We are
privatised. However, distribution remains the doing an extensive study of the grid, training will
biggest challenge in that value chain.” be done here in Nigeria, whether they are within
Tifase also confirmed that the government the TCN or Discos, because Siemens will not be
would provide a sovereign guarantee to back shipping loads of its hands to do the work Nige-
further investments in upgrading the grid. rians are capable of doing,” she went on.
On the cost of the project, she explained: The Siemens chief also pointed to the compa-
“Where we are now is a project that costs ny’s experience in Egypt, where it has installed
NGN20bn ($50mn) in total and we at this 14,400MW of generation capacity.
moment are at NGN1.7bn ($4mn) in total and “This was a record. We can do the same in
that’s what constitutes the initial sum for the Nigeria. All stakeholders are committed and
pre-engineering project. driven by the top level of government. It has the
“The project eventually will transition into a backing of the president himself,” she said.
first phase that costs about $2.5bn,” she said. German involvement and an active commit-
This spending will raise capacity to 7,000MW. ment to probity and transparency could well be
The cost of second and third parts of the PPI pro- what Nigeria needs to repair its ailing power dis-
ject, which will take capacity to 25,000MW, has tribution system, which leaves much gas-fired
not yet been publicised. generating capacity standing idle while millions
The Siemens deal allows the German com- are dependent on diesel generators and are vul-
pany great control over contracts and costs, in a nerable to power cuts.
bid to reduce corruption and soaring costs. With presidential backing, the programme
She said that Siemens’ involvement would has strong support, but it must tackle debt, poor
be centred on using as much local content as payment discipline and unreliable output from
possible, especially local small companies and the gas sector. ™

Week 32 13•August•2020 www. NEWSBASE .com P5