Home Energy FEC approves N1.708 billion and €15.21 million payment for counterpart funding for...

FEC approves N1.708 billion and €15.21 million payment for counterpart funding for the Presidential Power Initiative

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President Muhammadu Buhari presiding over the weekly virtual Federal Executive Council (FEC) meeting at the State House, Abuja. Photo credit: Presidency

By Audrey Lotechukwu

THUR, JULY 30 2020-theG&BJournal- The Federal Executive Council (FEC) Wednesday approved payment of N1.708 billion and €15.21 million towards the counterpart funding for the Presidential Power Initiative (PPI), a power upgrade and modernization programme between the Federal Government and Siemens AG of Germany, with the support of the German Government.

The President in May, 2020 directed the Ministry of Finance and Ministry of Power as well as the Bureau of Public Enterprise (BPE) to conclude the engagement with Siemens AG to commence the pre-engineering and concessionary financing aspects of the PPI.

The Presidency in a Statement said the Council approval is a ratification of President Muhammadu Buhari’s earlier approval, and his directive to the Ministry of Finance and Ministry of Power to commence the pre-engineering and financing aspects of the PPI.

The Presidency in initiating the programme noted that the funding for the PPI will be secured under concessionary terms of up to 3-year moratorium and 12-year repayment at concessionary interest rates, through the German Euler Hermes cover, which the Federal Government will on-lend as a convertible loan to the other shareholders in the DisCos.

The approval for the release of the Funding for the first part of Phase 1 of the PPI was initially given by President Buhari in May.

The PPI is expected to deliver on conclusion, improved power supply nationwide, with attendant results in job creation, investor confidence, cost and ease of doing business and economic growth.

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