Siemens will provide general technical training for employees of DISCOs, TCN, and regulators.
According to the Minister of Finance, Zainab Ahmed, the nation loses over $1 billion annually due to technical and commercial inefficiencies along the electrification value chain. She said: “The PPI will help eliminate these inefficiencies and unlock economic value for the country.”
Recall that back in July this 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.
Tolu Ogunlesi, a media aide to President Muhammadu Buhari had said that the approval of Phase 1 of the PPI includes projects in transmission, distribution, metering, simulation & training.
He said, “This Phase 1 focused on “quick-win” measures to increase the end-to-end operational capacity of Nigeria’s electricity grid to 7 GW. Transmission projects proposed under Phase 1 include 132/33 kV Mobile Substations; 132/33 kV(60 MVA) Transformers, and Containerized GIS Substations.”
Structure of PPI funding:
- 85% from a consortium of banks, guaranteed by the German government through credit insurance firm, Euler Hermes.
* 15 % of FG’s counterpart funding.
* 2–3 years moratorium.
* 10–12 years repayment, at concessionary interest rates.
Saleh Mamman, Minister of Power, said, “This significant, timely and high-level intervention between President Buhari and Chancellor Merkel addresses critical infrastructure deficits in the value chain and helps reposition the power sector to become more attractive, viable and investable.”
The PPI project aims to upgrade the electricity network to achieve an operational capacity of 25,000 megawatts (MW) from the current average of around 4,500 MW, through a series of projects spanning three phases.