Govt spends N102b on power sector
POWER and Steel Minister Liyel Imoke has said that the Federal Government spent N102 billion on the power sector since 1999.
Imoke said in a publication issued by the National Electric Power Authority (NEPA) yesterday in Abuja that the amount fell short of the one billion dollars needed to acquire and update dilapidated equipment in the power sector.
He pointed out that the sector had suffered many years of neglect, saying that although the amount appeared substantial on the surface, it was still being under funded.
The minister said that the dispute between demand and supply of electricity in the country showed that much investment was needed in the sector.
The minister stated that a unit at the Lagos Thermal Station Egbin cost more than N2 billion to rehabilitate.
He added that the present administration inherited a fragile and week network that was operated for between 15 and 40 years without proper maintenance.
"Before 1999, out of the 79 installed unit at various power stations across the country only 19 where on stream with most being run under extremely impoverished and obsolete conditions,"
Imoke said the continuous running of the stations before 1999 was considered as "record breaking" as the units have exceeded the prescribed number of hours for maintenance and rehabilitation.
He cited the General Electric engine at the Delta Power Station and the Sapele Power Station as examples of units that were not only overstretched but have out ran their normal hours.
He said that the present power reform would in the short and medium terms provide for the rehabilitation and restructuring of the sector while its long term measure would liberalise and privatise the sector for a more reliable and adequate power supply.
Imoke said that the reform would enable the sector meet up with the demand which has outstripped supply, adding that it would also ensure the generation of more than 10,000MW before 2007.
The minister said that government would partner with the private sector in its bid in increase power generating conditions.
"Independent power producers are expected to generate about 4000MW from ongoing projects. Agip Kwale generates 960MW, Shell is generating 9000MW from Afam Power station," he said.
The Ajaokuta-Gergu power station according to the minister, would generate 414MW. Papalanto and Omotosho Power Station 330MW, Delta Power Station 150MW and Alaoji Power Station in Aba 330MW.
