The Federal Executive Council today, Thursday approved payment of €15.21m and N1.708 billion towards the counterpart funding for the Presidential Power Initiative, a power upgrade and modernization program between Nigerian Government and Siemens AG of Germany, with the support of the German Government.
The Council approval is a ratification of President Muhammadu Buhari’s earlier approval, and his directive to the Ministries of Finance and Power to commence the pre-engineering and financing aspects of the Presidential Power Initiative (PPI)
The Presidential Power Initiative is a Programme to modernise Nigeria’s electricity grid, under a Government-to- Government framework between the Nigerian and German Governments; to be managed and implemented by Siemens AG.
The initiative was birthed from discussions between the Nigerian and German Governments during German Chancellor Angela Merkel’s State Visit in August 2018.
Initial development work on the foundational ‘Roadmap’ document (known as the Nigeria Electrification Roadmap) was done by Siemens, the Nigerian Government (Ministries, Departments and Agencies) and the 11 Electricity Distribution Companies (DisCos), between October 2018 and June 2019. As part of this, the DisCos submitted lists of priority projects to be done in all three Phases of the PPI.
Signing of the Implementation Agreement for the Roadmap took place on Monday July 22, 2019. The Agreement was signed by Siemens and by the Bureau of Public Enterprises (on behalf of the Nigerian Government),
and witnessed by shareholders and management of the DisCos.
The late chief of staff to the president, Mallam Abba Kyari was appointed to lead the project execution process on the Nigerian side.
He held several meetings with parties involved in the project before and after the agreement was signed. He traveled to Germany in early March in furtherance of the assignment.
It was there he contracted coronavirus from which he did not recover.
The PPI is planned to be implemented in three (3) Phases:
• Phase 1: Resolve 2,000MW of Transmission and Distribution Constraints, taking operational capacity of the grid to 7,000MW
• Phase 2: Increase operational Grid Capacity by an additional 4,000MW, to 11,000MW
• Phase 3: Achieve total operational Generation and Grid Capacity of 25,000MW subsequently.