President Buhari

BY EMEKA EJERE

The federal government and Siemens AG have signed a contract for the pre-engineering phase of the Presidential Power Initiative (PPI)

The pre-engineering phase contract includes; Engineering design, Finalizing project specifications, Commissioning works for transmission & distribution systems and others.

Special Assistant to President Buhari on Digital and New Media, Tolu Ogunlesi, who disclosed this on Monday evening, said the deal was signed Thursday, 18th of February 2020.

“The FG and Siemens AG signed contract for the pre-engineering phase of the Presidential Power Initiative (PPI). Recall that the FGN payment was approved last year. FGN has set up an SPV known as the FGN Power Company to work with Siemens to implement,” he said.

Ogunlesi disclosed that the Presidential Power Initiative which used to be known as the Nigeria Electrification Roadmap (NER) will come in 3 phases: target of 7,000MW operational grid capacity, 11,000MW and 25,000MW

He added that the contract signed last week is for the pre-engineering Phase, which includes: engineering design, finalizing project specifications, commissioning works for transmission & distribution systems, network development studies, power simulation, training – support services.

“The SPV, FGNPowerCo, has the responsibility of executing the Presidential Power Initiative (PPI), providing project management for the implementation of the PPI and serving as the key manager to ensure cohesion and seamless execution,”  he added.

Recall that the federal government had last week stated that the Siemens $2 billion power deal, under the PPI, will save the nation over $1 billion annually.

The federal government had also in July last year approved the sum of N8.64 billion as part of counterpart funding for the PPI, which is also known as the Siemens Project.