The Federal Government has approved the release of part of counterpart funding for the Presidential Power Initiative (PPI), which is also known as the Siemens Project.
This was disclosed by one of the media aides of President Muhammadu Buhari, Tolu Ogunlesi via his Twitter handle on Wednesday.
According to him, 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 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 the 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.
“There will be significant opportunities for Local Content on this project; for Nigerian companies to take part in the Site Surveys & Soil Investigation Civil Works, Supply of Smart Meters, Data Center Hosting, Power System Modelling,” he added.