Jonathan Orders Full Implementation of Power Sector Reform
7 June 2010, Daily Trust
President Goodluck Jonathan has directed the Ministry of Power to commence full implementation of the Power Sector Reform Act in order to create room for private sector participation and efficient service delivery to Nigerians, Minister of State [Power] Nuhu Somo Wya has said.
Wya who received a group of foreign investors from the United Arab Emirate (UAE) that made presentation on their planned participation in the sector said the President has given the ministry the mandate to commence the reform process and break all barriers that would prevent private sector players coming to invest in the sector. "I have a clear mandate of Mr. President to break all bottlenecks to private investor's participation in the power sector. We are ready to encourage you and we will create the enabling environment for you to actively invest in the sector. Our doors are open to all genuine investors, "he said.
Based on the President's directives, the minister said: "We are commencing full reform of the sector in order to encourage the inflow of the much needed investment for the sector."
According to the minister it has become obvious that government alone cannot provide the required investment that would drive the sector for the benefit of all Nigerians, stressing that government is open to anybody who has the resources and ready to invest in the sector to come on board.
Wya explained that though most of the power stations in the country are thermal or gas fired based, Nigeria still needs more thermal or gas powered plants adding that investors could easily diversify into other alternative power generation opportunities that exist in the country.
The Minister requested the officials of the visiting firm-Energy Trading Group FZC of UAE to meet with the relevant agencies within the Power sector for proper guidelines for investing in the sector urging them to also look at the model on Power Purchase Agreement (PPA) developed by NERC with a view to assist them design a sound business plan that will conform with the practice in Nigeria.
Wya also asked them to meet with NERC officials with a view to obtaining the guidelines for licensing companies that want to operate or do business in the sector, noting that relevant committees within the Power ministry directly concerned with issues on Independent Power Projects (IPP) would also be able to help them fast tract their investment plans in line with the existing guidelines.
Mr. Mike McCafferty director of business development of ETG said the company has over 33 years of working experience in both Power as well as oil and gas industry across major continents of the world.
McCfferty added that ETG Power seeks to establish an Independent Power Project with a frame 9 Power plant in simple cycle operation as phase 1 of the project to be delivered within 12 months to commercial operations.
He said the second phase of the project will incorporate combined cycle operation and that the commissioning of phase II can be delivered within twelve months after commercial operation of phase 1 which he said could give 230Megawatts(MW) of electricity to Nigerians.
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