Federal Government approves N100 billion for power generation
Thursday, 26 Apr 2012
Minister of Information, Labaran Maku disclosed this after the Council meeting presided over by President Goodluck Jonathan.
Maku said the contract was approved by Council to address power outages in the country which had been largely attributed to gas shortage. ''Inadequate gas supply has been one of the reasons for recent downturn in power generation.
''The Ministry of Petroleum Resources and the Ministry of Power have been working on this for a while. ''Today the Ministry of Petroleum Resources brought a memo to Council seeking for the immediate construction of the strategic gas pipeline from Obiaku/Obrikom in River State to Oben in Edo State.
''This strategic gas supply project will facilitate the harnessing of gas and gas supply to major power projects located, particularly in southern part of the country.
''The strategic project which Council today approved will also ensure the sufficiency of gas to factories in Lagos, particularly the power projects and all the gas fired power plants located in this part of the country.’’
The minister said Lot 1 of the contract was awarded to Nestoil Nigeria Ltd. at the cost of N19.25 billion with addition of 1920-million-dollar component. Lot 2 of the contract, according to the Maku, was awarded to Oil Serve Nigeria Ltd. in the sum N29.52 billion with an 83.92-million-dollar component.
Maku said the Council directed that the execution of the contract should be expedited and delivered in 24 months. In a related development, FEC also ratified contract of N2.942 billion for the development of the National College of Petroleum Studies in Kaduna.
The institution was established to train middle level officers and some key management staff in the petroleum industry. Maku said contracts was approved for the construction of classrooms, hostels, workshops and other basic facilities in the school with completion period of 30 weeks to 52 weeks.
The minister stated that FEC also approved contract for the establishment of Information Communication Technology centres in educational institutions across the country. He said the contract in the sum of over N9.8 billion was approved under the portfolio of the Petroleum Technology Development Fund.
Maku said that the institutions to benefit from the project were picked from a list given to PTDF by the Federal Ministry of Education. The minister said Council also approved the award of a N267-million contract for consultancy services for the development of a 25-year national ports master plan. He said Council approval was sequel to a memo presented by the Ministry of Transport and the Nigerian Ports Authority.
Minister of Transport, Sen. Idris Umar, explained that the master plan was imperative for the nation to cope with the emerging international trends and the effects of globalisation on the maritime industry. ''The ports master plan will be for 25 years and will form the basis for strategic policies in effective utilisation of resources and effective service delivery,’’ Umar said.
He said the consultancy project would be carried out along with core employees of the Ministry.