{"id":121566,"date":"2021-12-16T05:30:06","date_gmt":"2021-12-16T04:30:06","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=121566"},"modified":"2021-12-16T05:32:14","modified_gmt":"2021-12-16T04:32:14","slug":"fg-approves-e62m-to-procure-transformers-for-siemens-power-project","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/12\/16\/fg-approves-e62m-to-procure-transformers-for-siemens-power-project\/","title":{"rendered":"FG approves \u20ac62m to procure transformers for Siemens power project"},"content":{"rendered":"<p>The sum of $1.9 million and \u20ac62.9 million have been approved by the federal executive council (FEC) for phase one of the presidential power initiative (PPI).<\/p>\n<p><span data-preserver-spaces=\"true\">PPI is a power upgrade and modernization programme between the Nigerian government and Siemens with the support of the German government.<\/span><\/p>\n<p>The new approval was made known on Wednesday by minister of finance, budget and national planning, <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/12\/13\/nigerians-should-expect-modest-increases-in-taxes-levies-zainab-ahmed\/\">Zainab Ahmed<\/a> while<span data-preserver-spaces=\"true\">\u00a0addressing state house correspondents after the weekly FEC meeting in Abuja.<\/span><\/p>\n<p>The federal government in July 2019 signed a power project deal (PPI) with Siemens AG to increase<span data-preserver-spaces=\"true\">\u00a0Nigeria\u2019s electricity generation to 25,000 megawatts (MW) in six years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In July 2020, President Muhammadu Buhari approved the payment of<\/span><span data-preserver-spaces=\"true\">\u00a0\u20ac15.21 million and N1.708 billion as counterpart funding for the PPI.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Speaking on the recent development, Ahmed said $1.9 million will be used for payment of transactions advisors and third-party consultants for the power project.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe first memo that we presented to council was seeking Council\u2019s approval for the engagement of Africa Finance Corporation (AFC) as transaction advisors with third-party consultants for the implementation of the Presidential Power Initiative (phase one),\u201d Ahmed said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo, the AFC, the transaction advisors, their fee is $800,000 US dollars and the transaction period is 18 months and this includes their reimbursable expenses.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe second component is the engagement of third party consultants and this includes local as well as international legal advisory firms, environmental and social impact assessment consultants, security consultants, insurance advisors, as well as tax and model auditor.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThese parties are collectively engaged in the sum of $1,116,312.45 US dollars. The objective of the PPI project is to modernize and upgrade power transmission and distribution infrastructure in Nigeria.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The finance minister also explained that \u20ac62 million will be used for the procurement of mobile equipment and transformers for the transmission of power across the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe second approval that we got from Council today is still relating to the PPI power project and the memo was seeking the approval of Council for the award of contracts for the procurement of mobile equipment for the transmission power component of the project,\u201d she said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo, 10 mobile equipment and 10 transformers in favour of Siemens AG.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe total cost of the procurement is in the sum of 62,949,447 euros with a delivery period of 12 to 18 months, dependent on how we\u2019re able to push because this equipment will be manufactured specifically for us.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe focus is to be able to very quickly enhance the power availability and capacity in the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWith this particular approval, we\u2019ll be able to expand from the current capacity of 5000 megawatts to 7000 megawatts.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Last week, Abubakar Aliyu, minister of power, said the Siemens power project would commence in the first quarter of 2022.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sum of $1.9 million and \u20ac62.9 million have been approved by the federal executive council (FEC) for phase one of the presidential power initiative (PPI). PPI is a power upgrade and modernization programme between the Nigerian government and Siemens with the support of the German government. The new approval was made known on Wednesday [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":120701,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[371,12288,24731,958],"class_list":["post-121566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-fg","tag-presidential-power-initiative-ppi","tag-siemens-ag-power-project","tag-zainab-ahmed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>FG approves \u20ac62m to procure transformers for Siemens power project<\/title>\n<meta name=\"description\" content=\"The sum of $1.9 million and \u20ac62.9 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