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8/8/2019 Update on Activities in the Nigerian Power Sector
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Update on Activities in theNigerian Power Sector
Being Presentation byEngr. (Dr.) Joseph O. Makoju
Special Adviser to the President on Electric Power at the
NERC/UBA Seminar on Financing & Investment Opportunities in theNigerian Power Sector at Abuja
25thJanuary, 2007
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Outline
Operational Update Infrastructure Expansion
Sector Reforms
Conclusion
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Operational Update
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Some improvement in generation output nowbeing experienced (although some outputconstraints still exist at a major thermal stationdue to the gas restrictions from NGC
400MW Shortfall). With the recent improvement in relations
with the surrounding communities, we nowhave access to the location of the vandalizedgas pipeline, and negotiations are on for the
commencement of repairs.
Operational Update
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Major Infrastructure Expansion
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1st Batch FG Power Stations (1,600MW)
Geregu:- Work on the 414MW plant is on going. Plant is
on schedule for commissioning in Feb-07.
Omotosho and Papalanto :-. Installation works on-going. On completion the total capacity at both plant will
be 670MW. First fire of Omotosho and Papalanto is
expected to be in Apr 07.
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FG Power Stations...contd
Alaoji:- Civil Works in progress. Some major equipmenthave arrived. Custom clearance and transportation to site
has commenced. The 504MW plant is on schedule forearly 2008.
Mambilla:-Agreement concluded with the ChineseGovernment to part fund this 2,600MW hydro station.
Award of civil works and ground breaking ceremonybefore the end of February and the power station shouldcome on stream by 2012.
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Generation Expansion Plan (2006-2010)
Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Existing Power Stations 3357 4027 3880 3780 3780
Existing IPPs 750 750 750 750 750
On-going FG Projects1001 1496 2512 3528 4544
On-going NIPP PS 0 2203 2743 2743 2743
Proposed JV-IPPs 0 1220 2790 2790 2790
Other IPPs 90 510 1265 1365 1865
Total 5198 10206 13940 14956 16472
Notes: (i) Major Hydro Projects eg: Mambilla will come on stream by 2012
(ii) A 25yr Power Sector Development Plan aimed at achieving 150000MW has been developed.
(iii) Sustained funding of the sector (PPP) is required to ensure execution of the Development Plan to avoid any future reversals.
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FG Transmission Projects
Owerri-Ahoada-Yenogoa Transmission Line
and associated SS has been commissioned byMr. President (linking Bayelsa State for the firsttime to the national grid)- October 2006.
Commissioning of the 330kV Ikeja West(Nigeria) Sakete (Benin) interconnectionexpected in the first half of February 2007.
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NIPP (2,770MW)
Power Stations
Major equipment for Egbema andIhovbor Power Stations have arrived andhas been cleared from the ports, while
that of Gbaran Ubie; Calabar and SapelePower Stations have been shipped.
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NIPP...contd
Transmission
Contractors on Transmission projects
under the NIPP have mobilized
Challenges- community issues; weather etc
Distribution Procurement Process nearing completion
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NIPP POWER STATIONS:NIPP POWER STATIONS:
Lot 1 CALABAR, 561MW
Lot 2 EGBEMA, 338MW
Lot 3 EYAEN, 451MW
Lot 4 GBARAIN, 225MW
Lot 5 IKOT-ABASI, 300MW
Lot 6 SAPELE, 450MW
Lot 7 OMOKU, 230MW
Lot 8 IBOM POWER, 188MW
Total = 2,743 MWTotal = 2,743 MW
Location and Scope of NIPP Power Stations
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Scope of NIPP TransmissionScope of NIPP Transmission
WorksWorks
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3540 MVAadditional
Inj.
Capacity
2666 Kmof 11 KVLines
22,598
DistributionTransformers
1701 Km
of 33 KVLines
And Scope of NIPP Distribution Project
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Calabar
Port Harcourt
Warri
Benin CityLagos
Paplanto
Egbin
Omotosho
Calabar
Alaoji
Eyaen
Sapele
Gbaran
Egbema
Ikot AbasiOmoku
Okpai1&2
Agura, Ikorodu
Obite
Bonny
Geregu
Afam
OBEN TO AJAOKUTA
Ajaokuta
OBIGBO NORTH TO
ALAOJI
IKOT ABASI TO
IBOM IPP
AJAOUKUTA TO OBAJANAAJAOUKUTA TO KADUNA,
ABUJA
ELPS TO OMOTOSHO
ELP TO PAPLANTO
ELP TO EYAEN
SCOPE:SCOPE:Calabar, 90km
off-shore Adanga to CalabarEyaen, 5km off ELPSEgbema, 12 km to IzombieGbaran, 6km to Gbaran/UbieOmoku, 1km from Omoku
Sapele, 1km to ELPS ObenSapele System
Gas Delivery Projects
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Sector Reform
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1999- our Starting Point (Vertically IntegratedMonopoly)
2001- Introduction of a new Power Policy
2005- Promulgation of the EPSR Act
2005- Formation of PHCN Plc
2005- Incorporation of successor companies
2005- Inauguration of NERC
2006- Take-off of new successor companies
(and the commencement of the winding down of PHCN HQ)
Sector Reform - Highlights
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Sector Reform
BPE has incorporated the Nigeria Electricity Management Agencyto manage the legacy liabilities of PHCN in August 2006
Resolution of staff severance issues are at an advanced stage 1st power generation licences issued by NERC in Jul-06
Procurement process for O&M of TransysCo is on-going
Privatization of some SCs to commence in 1st
Q-07 Work on the RE Policy as well as the set-up of REA Fund on-
going
Procurement process for disposal of Ijora and Calabar PowerStations has commenced
Private Sector funded mass metering programme in the distributioncompanies has started.
d
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Present Landscape
Decentralised Structure
18 successor companies
Market Operations (Wholesale Mkt.; Transfer Pricing) Independent Electricity Regulator
REA NEMA
Some Private Players (AES,AGIP,RCM, Fibre Optic Coys)
Gradual disappearance of the vestiges of PHCN
Sustaining ongoing initiatives (Master Plan/Public
Enlightenment)
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Are we done?
Certainly Not!Unbundling is
not an end in itself but a means toachieving higher levels of efficiency &
improved service reliability(through thereplacement of a monopoly dominated
sector with a liberalized sector driven bymarket dictates).
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The next logical step
Quickly move the unbundled entities
to a position of complete financialautonomy. The underlying issue
being to make the sector financially
self sustaining...herein lies the
challenge.
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Some Challenges
Huge Supply Deficit
End User Tariffs
Commercial Performance
Funding Reform (Severance Pay,Union Buyin etc)
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What next? . surmounting the challenges
SPE being set-up to inherit major liabilities of
PHCN (loans, PPAs etc )which would otherwise
have had a huge impact on the working capitalof SCs.
High level inter-agency committee currently indiscussions with the Unions
Schemes being designed to improve commercial
performance (Upgrade of RCM; Concessioning of Dist.Coys and Gen. Coys; O&M for new PS etc ).
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Essential Requirements for a Successful
Power Sector Business
Collection efficiency of at least 90%. Cost Reflective Tariffs (MYTO)
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Our Expectations
The ongoing procurement process for
the sale/concession of the distributioncompanies and some power stations willattract credible investors with the
required experience and financialcapacity to manage, grow and develop theESI to the mutual benefit of all
stakeholders.
Conclusion
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Conclusion
Necessary steps are being taken to
ensure that the reform program is seenthough to its logical conclusion the
creation of an efficient and reliable privatesector led electricity industry.
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Thank you
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