This Day (Lagos)

Nigeria: Babalola Plans 6,500 MW For December

Patrick Ugeh

6 November 2009


Abuja — Minister of Power, Dr. Rilwan Lanre Babalola, yesterday assured that efforts were on to not only meet the 6,000MW by December 2009, but to also surpass it by at least 500MW.

Babalola said the national electricity requirement, including suppressed and unmet demands, are between 5,000MW and 5,500MW.

When THISDAY published his comment about the national requirement, meaning that should the projected 6,000MW be met, the statement implied that Nigerians would have steady power supply, he denied it, saying he couldn't have said so because it didn't include suppressed demand.

But at his ministerial press briefing in Abuja yesterday, he said: "in February 2009, a national study was completed. This is the first such comprehensive study undertaken by the industry to determine the total national electricity requirement. The study estimates that the national electricity requirement, including suppressed and unmet demand, is between 5,000MW and 5,500MW."

He said 6000MW was a milestone which we are to get to, but that 6000MW alone would not solve our problem, adding, however, that 6000MW is a target "we as government have set for ourselves to ensure we supply reliable, adequate power to Nigeria.

"Not more than 70 million Nigerians are connected to the grid. That means we have another 70 million people to bring to the fold. This is why the effort of government is not just stopping at December 2009.

It goes beyond that and the NIPP programme. We have the plan to achieve this. So 6000mw is, from the supply standpoint, a realistic target, which is a milestone we will get to. Without doubt in my mind, we believe that it is attainable."

Giving a hint that the attainment of the 6,000MW might go beyond the December 2009 deadline, He said given these back that the gas sector suffered, gas being a critical input for power generation, it would, nonetheless, be achieved, even if slightly shifted to next year.

"I have no doubt that whether it is on the first of December or 31st of December or sometime early in the new year, the 6,000mw will not only be achieved, but it will be surpassed," Babalola said. On the stoppage of pre-paid meters, the minister said the project had to be discontinued, because although it was meant to be self-financing, some people smuggled it into the budget.

He said PHCN was assessing the situation and would prepare the way forward, adding that while some of the contracts for the project had elapsed, some contractors violated the contract terms.

He said the World Bank supported power supply with a credit of $600million made up of $200 million for investment in transmission and distribution sector and $400 million for partial risk guarantee, adding that they were working very hard to ensure that the various projects - transmission and distribution, under the aegis of NIPP, Niger Delta Power Holding Company - will increase transmission capacity and distribution.The minister said although N53.2 billion had been released to the ministry and its agencies as at 26 October, they had actually utilised only N18.9 billion or 36 per cent of total capital releases.He said out of the appropriated amount of N78.97 billion for the ministry, N12.29 billion, comprising N8.05 billion for RuralElectrification Agency, "which is winding down in line withpresidential directives," N4.04 relating to solar power projects, and N0.2 billion for developing a long-term power system expansion plan, has been suspended.He said the ministry had submitted a virement for some of the non-expendable amount to be used in other areas.On achievements of the ministry, he said, among others, that from January to date, PHCN's power plants at Geregu, Omotosho and Papalanto were completed and put to commercial operation, adding 1,032MW to the grid.

He said one unit of Egbin power plant was rehabilitated, adding 220MW; while a total of 582.4MW was recovered through the in-house rehabilitation carried out by PHCN, bringing thecurrent generation capability to 5,522MW.He said actual generation capability by January 2 was about 3,652MW, which has increased by 1,869MW to the current capability of 5,522."In addition to replacing the lost equipment and transformers in the system, reinforcement, expansion and rehabilitation projects are currently ongoing, to ensure that at least 6,500MW is successfully distributed by December 2009," Babalola said. PDP Leaders Visit Bode George.

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