FG, Siemens AG Sign Contract For Pre-engineering Phase of Presidential Power Initiative (PPI)
The Nigerian Government and Siemens AG have signed a contract for the pre-engineering phase of the Presidential Power Initiative.
The pre-engineering phase contract includes; Engineering design, Finalizing project specifications, Commissioning works for transmission and distribution systems and others.
This was disclosed by the Special Assistant to President Muhammadu Buhari on Digital and New Media, Tolu Ogunlesi Monday evening.
He disclosed the deal was signed Thursday, 18 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 and distribution systems, Network development studies, Power simulation and 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.
The PPI SPV is overseen by a Committee comprising the Ministers of Finance, Power, Work & Housing, Justice, DG, Bureau of Public Enterprise and President of the Nigerian Society of Engineers (NSE).
It was inaugurated September 10, 2020.
Last year, the Federal Government of Nigeria stated that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI), will save the nation over $1 billion annually.
Also in July last year, the Federal Government approved the sum of N8.64 billion as part of counterpart funding for the Presidential Power Initiative (PPI), which is also known as the Siemens Project.